The Administrative Director audits insurers, self-insured employers, and third-party administrators to determine obligations under which Labor Code section?

• A. Labor code 12.2
• B. Labor code 101
• C. Labor code 129
• D. Labor code 230

Answer: (C)

The key idea is that the Administrative Director has the authority to verify and enforce workers’ compensation coverage, including auditing insurers, self‑insured employers, and third‑party administrators to determine what obligations apply. Labor Code section 129 grants this enforcement power, allowing the Director to inspect records, confirm who must be covered, and require compliance (including penalties for failure to secure coverage). That makes it the appropriate basis for audits aimed at determining coverage obligations. The other sections address different aspects of enforcement or penalties and don’t specifically authorize this kind of audit and determination of coverage obligations.