What is the California Self-Insurer's Security Fund?

• A. A fund to guarantee payment of benefits for private self-insured employers.
• B. A fund to pay unemployment benefits.
• C. A fund to subsidize premiums.
• D. A fund to provide grants for self-insurers.

Answer: (A)

The fund is a financial backstop to ensure that workers’ compensation benefits are paid even if a private self-insured employer can’t meet those obligations. In California, some employers choose to self-insure rather than buy private workers’ comp insurance. The Self-Insurer’s Security Fund provides revenue to cover benefits for injured workers when a self-insured employer becomes insolvent or unable to pay. It’s funded by assessments on private self-insurers and is dedicated to guaranteeing benefit payments. This isn’t about unemployment benefits, premium subsidies, or grants, which is why the other options don’t fit.