The director may only accept certain forms as payment for self-insurance obligations. Which of the following is NOT an accepted form?

• A. Cash
• B. Approved securities
• C. Surety bond
• D. Promissory note

Answer: (D)

The key idea is that self-insurance obligations must be backed by funds that are readily available to cover claims. The director can accept forms that provide immediate liquidity or a solid guarantee: cash is obviously available right away; approved securities are liquid assets the director has vetted and can quickly convert to cash if needed; a surety bond offers a third‑party guarantee that funds will be paid if the self‑insurer cannot meet obligations.

A promissory note, however, is only a promise to pay in the future. It may not be paid when due and does not provide guaranteed or immediate access to funds, so it does not meet the requirement for reliable, readily available coverage of self‑insurance obligations.