True or False: A self-insured who elects to purchase an aggregate excess policy shall not be given any credit towards the security deposit to be posted due to aggregate insurance coverage.

• A. False
• B. Not sure
• C. Not applicable
• D. True

Answer: (D)

The regulation looks at the security deposit as a fund to cover potential unpaid claims in the event a self‑insured plan cannot meet its obligations. An aggregate excess policy does not reduce that immediate obligation because it only provides coverage after losses exceed the self‑insured retention and up to an aggregate limit. It is not a cash asset or a guaranteed reduction of the annual exposure that the department can rely on to settle claims directly. Since the deposit must reflect the state’s security for the full year regardless of how the aggregate policy might pay later, no credit is allowed for aggregate insurance coverage. So the true statement is correct.