Which statement best describes Group Self-Insurance?

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

Answer: (A)

Group self-insurance means several employers join together to assume and fund their own workers’ compensation liabilities instead of buying traditional insurance. The participating employers pool their resources into a common fund or trust and handle claim payments, loss control, and administration among themselves. Regulatory oversight and solvency requirements keep the pool financially sound, and stop-loss or reinsurance is often used to protect the group from unusually large claims. This arrangement gives employers more control over how claims are managed and can lower costs, but it still involves funding and paying for workers’ comp out of the group’s own resources.

This isn’t describing a typical insurer that issues policies for high-risk industries, nor a government-run fund, nor a private mutual fund unrelated to workers’ comp.