Which statement about Division 5 interpretation is true?

• A. It should be liberally construed to extend benefits.
• B. It should be interpreted to limit benefits.
• C. It should be interpreted to require court filings in all cases.
• D. It should align with federal criminal law.

Answer: (A)

Division 5 interpretation is guided by a liberal reading that aims to extend benefits to the fullest extent allowed by the statute. The idea is to protect workers by interpreting plan provisions in a way that covers more scenarios and narrows the gap where ambiguity or technical language might otherwise deny legitimate claims. This approach supports the purpose of self-insurance plans: to provide adequate, timely benefits without getting tripped up by narrow or technical readings of terms.

Interpreting to limit benefits would contradict the protective aim, and requiring court filings in all cases introduces a procedural rule that isn’t the basis for how Division 5 provisions are read. Aligning with federal criminal law has no relevance to how Division 5 is interpreted for coverage and benefits. So the statement that Division 5 should be liberally construed to extend benefits is the correct one.