What is the specified percentage range for substantial cause?

• A. 25-30%
• B. 35-40%
• C. 45-50%
• D. 60-70%

Answer: (B)

Substantial cause is defined by a threshold percentage of losses that a single contributing factor must reach to be treated as a significant driver in a self‑insured plan. The specified range here is 35% to 40%. If a single cause accounts for about one‑third to two‑fifths of the total losses, it’s considered substantial, which influences how losses are analyzed, reserved, or allocated.

This range prevents overlabeling every minor contributing factor as substantial, while still flagging a meaningful single driver. Values lower than this would understate significance, and values higher than this would make the cause too dominant to be called merely substantial.