Which item is NOT an obligation of former self-insurers?

• A. Filing annual reports
• B. Deposit or maintain a security deposit
• C. Provide competent administration
• D. Maintain a separate liability fund

Answer: (D)

When a former self-insurer winds down, the regulator still expects certain post-exit duties to protect claimants and wrap up the program. Filing annual reports continues to be required to keep the agency informed about the status of any outstanding issues and the wind-down progress. A security deposit must be deposited or kept up as a guarantee for any residual liabilities, ensuring funds are available to cover claims that may still be outstanding during the transition. Competent administration means there’s a properly qualified person or team handling the remaining responsibilities and ensuring orderly closure. However, maintaining a separate liability fund is not required after you stop self-insuring. That fund is tied to ongoing self-insurance to cover future liabilities, which isn’t applicable once you’ve exited the program.