Once an employer has initiated a self-insurance program, the employer's certificate to self-insure is valid until when?

• A. Irrevocable in California
• B. Valid for other jurisdictions
• C. Valid until revoked by the director
• D. Renewed annually by the Director

Answer: (C)

In California, once an employer is approved to self-insure, the certificate to self-insure is a standing authorization rather than a time-limited license. It remains in effect as long as the employer continues to meet the required conditions—financial solvency, security postings, accurate reporting, and proper claim handling. The Director of Industrial Relations has the authority to revoke the certificate if those conditions aren’t maintained. Because of that oversight role, the certificate isn’t irrevocably fixed or automatically renewed each year; its validity ends when the Director revokes it. If the Director determines the employer no longer satisfies the standards, the employer must stop self-insuring and return to standard coverage.