Which Labor Code section authorizes the Administrative Director to audit insurers, self-insured employers, and third-party administrators to determine if they have met their obligations under the labor code?

• A. Labor Code 3212
• B. Labor Code 4062
• C. Labor Code 129
• D. Labor Code 110

Answer: (C)

The Authority to audit insurers, self‑insured employers, and third‑party administrators comes from a Labor Code provision that gives the Administrative Director power to examine records and conduct audits to ensure compliance with the Labor Code. This auditing power is what allows the Director to verify that these entities have met their obligations, such as properly backing coverage, reporting accurately, and administering claims in accordance with the law. In the self‑insurance/safety program context, audits help confirm that financial safeguards, administrative practices, and regulatory requirements are being maintained for workers’ protections. The other listed provisions deal with different topics or enforcement mechanisms that do not grant this specific audit authority, so this provision is the correct basis for the Administrative Director’s ability to audit these entities.