What document must every employer except the state secure from the director to self-insure for workers' compensation?

• A. Certificate of Consent to Self-Insure
• B. Certificate of Insurance
• C. License to Self-Insure
• D. Surety Bond

Answer: (A)

To self-insure for workers’ compensation in California, an employer must obtain the Director’s consent. The official document granting this permission is the Certificate of Consent to Self-Insure. It proves the employer meets the state’s financial, safety, and claims-management requirements and is authorized to bear the cost of workers’ compensation benefits directly. Without this certificate, self-insurance isn’t allowed, and the employer would need coverage through a private insurer or the State Fund. The certificate is different from a Certificate of Insurance (proof of coverage from an insurer) and from a license or bond—though a bond or other security may be part of the approval process, the essential document granting permission is the Certificate of Consent to Self-Insure. The state is exempt from this requirement.