Which of the following is true about Group Self-Insurance?

• A. A government-run fund
• B. A plan where multiple employers pool their workers' compensation risks to self-fund
• C. An insurer that issues policies for high-risk industries
• D. A private mutual fund unrelated to workers' comp

Answer: (B)

Group self-insurance means several employers join forces to fund and manage their own workers’ compensation losses rather than buying traditional insurance. By pooling their payrolls and history of claims, they finance claims through the group’s resources and often use a trust or similar structure to handle administration and funding. Regulation typically requires financial reserves, a plan administrator, and sometimes stop-loss coverage to protect against unusually large claims. This setup is specifically about workers’ compensation risk-sharing, not a government-run fund, not a private insurer for high-risk industries, and not a separate mutual fund unrelated to workers’ comp.