The employer has an aggregate excess Worker's Compensation policy. Does the employer receive credit against the security deposit?

• A. Yes
• B. No
• C. Only if policy includes credit
• D. Not specified

Answer: (B)

In California workers’ compensation self‑insurance, the security deposit functions as a guaranteed source of funds to cover benefits if the employer cannot pay. Even when an aggregate excess workers’ comp policy is in place, it does not reduce or offset that required deposit. The excess policy only covers losses beyond the employer’s self‑insured retention; it doesn’t eliminate the state’s financial backing to secure the employer’s liabilities. Because the deposit is there to guarantee payment regardless of private coverage, no credit against the security deposit is given for having an aggregate excess policy.