Which change does not require notifying the chief?

• A. Cease to do business in CA
• B. Change in ownership
• C. Change in minority shareholders
• D. Material change in management

Answer: (D)

The key idea is that regulatory reporting is triggered by changes that affect who controls the self‑insurance plan or its ability to meet obligations. Regulator oversight focuses on ownership, control, and financial ability, not every routine personnel shift.

Ceasing to do business in California clearly changes the entity’s regulatory status and its ongoing ability to operate under a SIP, so notifying the chief is required. A change in ownership changes who ultimately controls the plan, which can affect eligibility, solvency, and regulatory responsibilities, so that's also a reporting trigger. A change in minority shareholders likewise alters ultimate control or ownership structure, which regulators monitor and thus requires notification.

A material change in management, by itself, does not necessarily affect control, ownership, or the plan’s financial obligations to policyholders. While significant, routine changes in who runs the organization do not automatically change regulatory status unless they also alter control or fiduciary responsibility. Therefore, this is the change that does not require notifying the chief, absent accompanying changes in ownership or control.