Which option is NOT listed as a deposit type that the Administrative Director may accept?

• A. Cash
• B. Approved securities
• C. Copper
• D. Irrecoverable letter of credit

Answer: (C)

The deposit types accepted to secure a self‑insurance obligation must be liquid and readily verifiable by the regulator. Cash fulfills this because it’s immediately usable to cover obligations. Approved securities are allowed since they are marketable and can be valued and liquidated with proper regulator approval. An irrecoverable letter of credit provides a bank guarantee, ensuring funds are available even if the insured cannot pay directly. Copper, as a commodity, does not meet these criteria: its value fluctuates and converting it to cash quickly and reliably is impractical, and it isn’t a standardized instrument approved for regulatory deposits. That’s why copper is not listed as an acceptable deposit type.