The administrator shall adjust estimates immediately based on receipt of what?

• A. court orders
• B. medical reports or orders of the appeals board
• C. employee surveys
• D. insurer feedback

Answer: (B)

In a self‑insured workers’ compensation setting, reserves must reflect the latest expected costs for each claim. New information that changes the projected medical needs or the legal/benefit obligations will directly alter those costs, so the administrator should update estimates right away whenever such information arrives.

Medical reports provide up-to-date details on a claimant’s condition, treatment plan, and prognosis, which directly influence future medical costs and disability duration. Orders from the Appeals Board establish binding decisions about allowable medical treatment, approved benefits, and any regulatory requirements, which also shift the future cost outlook. Because these sources offer authoritative, binding guidance on what will be paid and for how long, they are the triggers for immediate adjustment of estimates.

Other options don’t serve that immediate, information-driven adjustability. Court orders could affect outcomes in some cases but aren’t the standard trigger described here; insurer feedback is external and not the authoritative basis for reserving the plan; employee surveys do not impact medical costs or mandated benefits.

So, the administrator must adjust estimates immediately upon receipt of medical reports or orders of the Appeals Board.