Should you notify the chief of a change in status when the self-insurer changes ownership?

• A. Not required
• B. No
• C. Yes
• D. Depends on size

Answer: (C)

Ownership changes trigger regulatory notification to the Chief to protect claimants and ensure ongoing compliance. When a self-insured employer changes ownership, the SIP regulator must be informed so the plan can be re-evaluated under the new owner, confirming the new entity meets financial, bonding, and management requirements and that the transfer of responsibilities for existing and future claims is clear. The Chief uses this notice to determine whether the self-insured status can continue and to update official records, ensuring a smooth transition and uninterrupted coverage. Provide the effective date, details about the buyer and seller, and any updated financial or bonding information the regulator requires. Timely notice helps prevent enforcement actions, lapses in coverage, or other regulatory complications.