Which of the following is true about the ability of the manager to require an additional self-insured annual report?

• A. The manager can require a six-month interim report for good cause.
• B. The manager cannot require any additional reports.
• C. The manager can require a quarterly report only.
• D. The manager can require a monthly report.

Answer: (A)

In self-insurance plans, the supervisor or manager has authority to request interim information to keep a close eye on the plan’s finances between annual filings. A six-month interim report is the mechanism used when there is good cause to review the plan’s solvency and reserve adequacy without waiting for the next full year’s report. This allows timely detection of emerging issues, such as unexpected changes in loss experience, liquidity concerns, or shifts in enrollment, so corrective action can be taken sooner.

Because of this authority, requiring a six-month interim report for good cause is the correct understanding. It isn’t about banning additional reports or mandating more frequent reporting by default; the option reflects the specific allowance for a six-month interim report when there is legitimate reason.