Where must claims files be kept for out-of-state self-insurers unless the Manager approves in writing to administer from a location outside California?

• A. In CA
• B. In the state where the self-insured is located
• C. In CA unless the Manager has given written approval to administer from a location outside CA
• D. In the state where the TPA is located

Answer: (C)

Claims files for out-of-state self-insurers are required to be kept in California to ensure the state regulatory authority has timely access for audits, investigations, and ongoing supervision of claims handling. The rule allows a single, written exception: the Manager can authorize administering from a location outside California. This balance preserves strong oversight while permitting legitimate operational flexibility if approved in writing. Keeping files elsewhere by default would reduce direct access for California oversight and enforcement, which is why the approved-outside option is the correct exception.