Which of the following is an obligation of former self-insurers?

• A. Provide competent administration
• B. Filing annual reports
• C. Deposit security deposit
• D. Submit routine audits

Answer: (A)

The ongoing duty here is to ensure competent administration of the plan. Even after a self-insurer ceases to be self-insured, there needs to be a properly qualified administrator in place to handle claims, payments, and compliance so that workers are protected and the plan’s obligations are managed correctly. This ensures the transition doesn’t leave claimants without proper oversight or expose the plan to mismanagement.

Filing annual reports, posting or depositing security deposits, and submitting routine audits are typically tied to active self-insurance status and the regulatory processes that govern ongoing SIP operations. Once someone is no longer self-insuring, those tasks are generally handled through the established administrative arrangement rather than as an ongoing obligation of the former self-insurer.