Who can impose a penalty for failing to notify the excess carrier of a claim?

• A. The administrative director
• B. The excess carrier
• C. The Manager of self-insurance plans
• D. The California Insurance Commissioner

Answer: (B)

In a self‑insured plan that has excess coverage, timely notice of a claim to the excess carrier is a contractual obligation because the excess policy is what comes into play to handle claims beyond the primary coverage. The excess carrier has the right to enforce that notice requirement and can impose penalties if notice is not provided as specified, since the penalty flows from the contract between the insured (or self‑insurer) and the excess carrier. Regulatory bodies—like the administrative director, the Manager of self-insurance plans, or the California Insurance Commissioner—oversee compliance with laws and may sanction regulatory violations, but the specific penalty for failing to notify the excess carrier arises from the excess policy itself, not from a general regulatory penalty. Therefore, the entity that can impose the penalty is the excess carrier.