Which statement about credit toward the security deposit is correct?

• A. An aggregate workers' compensation policy may be credited toward the security deposit.
• B. An aggregate excess stop-loss policy shall not be given any credit toward the security deposit.
• C. A private self insured policy may receive partial credit toward the security deposit.
• D. Credit toward the security deposit is allowed if the policy is maintained for at least three years.

Answer: (B)

Credit toward the security deposit is about what sources of funding can be counted as reducing the amount the plan must post to cover potential obligations. An aggregate excess stop-loss policy does not provide liquid, readily available funds directly backing the plan’s obligations; it’s a wrapper that pays out only after losses exceed a certain level and depends on the reinsurer to pay. Because it doesn’t guarantee immediate funds to cover claims or reduce the plan’s direct liability, it isn’t credited toward the security deposit. The other statements imply credits for other types of coverage or time-based conditions that aren’t allowed under this rule, so the correct position is that aggregate excess stop-loss policy shall not be given any credit toward the security deposit.