What does the CA Self-Insurer's Security Fund provide?

• A. Insures insolvent insurers.
• B. Pays for medical provider fees.
• C. Covers the employee wage replacement only.
• D. Provides for the continuation of WC benefits delayed due to the failure of a private self-insured ER to meet its compensation obligations when the ER's security deposit is inadequate or not immediately accessible.

Answer: (D)

California’s Self-Insurer’s Security Fund exists to keep workers’ compensation benefits flowing when a private self-insured employer cannot promptly meet its obligations because the required security deposit is inadequate or not readily accessible. In that situation, the fund steps in to continue the injured employee’s WC benefits, so there isn’t a gap in wage replacement and medical care while the employer’s financial issues are resolved. It isn’t about insuring insurers or paying only medical or only wages by itself; its purpose is the ongoing continuation of benefits for workers when the self-insured employer can’t immediately cover those costs. The fund is funded by assessments on self-insured employers.