What document authorizes an employer to self-insure under the SIP?

• A. Certificate of consent to self-insure
• B. Self-insurance license
• C. Certificate of registration
• D. Employer liability letter

Answer: (A)

In the SIP context, the formal authorization to self-insure comes in the form of a certificate of consent to self-insure. This document is issued by the state regulatory authority and explicitly allows an employer to assume direct responsibility for workers’ compensation benefits rather than purchasing coverage from an insurer.

This certificate ties to the employer’s name, sets conditions and a term for continued self-insurance, and typically requires ongoing financial solvency, regular reporting, and potential security such as a cash deposit, bond, or reserve funds. It also subjects the employer to state oversight, with the possibility of revocation if requirements aren’t met.

Other documents aren’t the regulatory grant of permission to self-insure: a self-insurance license isn’t the standard instrument used; a certificate of registration is a more general regulatory credential not specific to SIP self-insurance; an employer liability letter isn’t a formal authorization to self-insure.