Who assumes payment of workers' compensation obligations when a self-insurer becomes insolvent?

• A. The Self-Insurers Security Fund
• B. The Employer
• C. The State
• D. The Injured Worker

Answer: (A)

When a self-insured employer cannot meet workers’ compensation obligations, there is a dedicated safety net to protect the injured workers. The Self-Insurers Security Fund steps in and pays the ongoing and future benefits for those employees. This fund is designed precisely for situations where a self-insurer becomes insolvent, ensuring that benefits aren’t disrupted and claimants continue to receive medical care and wage replacement as owed. The fund is funded through assessments from other self-insured employers and is administered within California’s workers’ compensation system. The employer wouldn’t continue paying after insolvency, the state doesn’t personally assume the payments as a general obligation, and the injured worker isn’t responsible for funding the benefits. The Self-Insurers Security Fund is the mechanism that carries these obligations when insolvency occurs.