The certificate of consent to self-insure shall not be issued to which type of employer?

• A. Professional ER organization
• B. Leasing employer
• C. Temporary service ER
• D. Any ER the director determines to be providing EEs to other ER

Answer: (A)

The key idea here is that a self-insurance certificate can only go to an entity that will be the direct employer of the workers and that can independently manage the financial and claims obligations of those workers. A professional employer organization operates as a staffing intermediary, with the employment relationship typically structured as the PEO being the employer of record for payroll while the client company handles day-to-day supervision. Because the PEO does not bear sole, direct responsibility for the workers’ compensation claims, issuing a certificate to satisfy self-insurance would blur liability and make it difficult for the state to ensure proper solvency and claims management. For that reason, a professional employer organization is not eligible to receive a certificate to self-insure. Leasing employers and temporary service employers can be considered eligible if they meet the required financial and program standards and demonstrate a direct employer relationship with the workers; the director retains authority to deny a certificate if the arrangement is merely about placing employees with other employers, rather than forming a true direct-employer setup.