Which items may the director accept as a deposit to secure incurred liabilities for payment of compensation and the performance of obligations to a self-insured employer?

• A. Certificate of Deposit
• B. Cash, Securities, and Surety Bond
• C. Land
• D. Promissory Note

Answer: (B)

The deposits used to secure incurred liabilities and the performance of obligations for a self‑insured employer must be readily realizable funds or guarantees. Cash fits this directly because it’s immediately available to pay claims or cover obligations. Securities can be pledged or liquidated to raise funds when needed, providing a reliable, valu able collateral source. A surety bond adds a guaranteed backstop from a bonding company; if the employer can’t meet obligations, the surety steps in to cover up to the bond amount.

Items like land are illiquid and not easily converted to immediate funds to cover ongoing liabilities. A promissory note is not a guaranteed or readily claimable source of funds. A certificate of deposit is a cash‑like instrument but isn’t listed among the standard accepted deposits in this context, whereas cash, securities, and a surety bond are specifically recognized as acceptable forms.