The director may revoke a certificate of consent to self-insure for what reason?

• A. Good cause
• B. Economic downturn
• C. Public opinion
• D. Duration of license

Answer: (A)

Good cause is the standard the director uses to revoke a certificate of consent to self-insure. This means there must be a legitimate basis tied to the employer’s ability to meet the requirements of self-insurance and to uphold safety and financial responsibility. If the employer fails to maintain financial solvency, fails to comply with the self-insurance plan rules, commits misrepresentation or other violations, or otherwise jeopardizes the ability to pay workers’ compensation obligations, the director may revoke the certificate. External conditions like an economic downturn or public opinion don’t automatically justify revocation, and the duration of the license isn’t itself a grounds for revocation.