Who issues the certificate of intent to self-insure?

• A. Administrative Director
• B. Director of Industrial Relations
• C. Department of Insurance
• D. Governor

Answer: (A)

In California's self-insurance program, the authority to grant permission to self-insure and to issue the certificate of intent to self-insure rests with the Administrative Director of the Division of Industrial Relations (Division of Workers’ Compensation). The Administrative Director reviews an employer’s financial strength, claims-handling capability, and overall ability to fund and manage workers’ compensation obligations without an outside insurer. If the criteria are met, a certificate is issued, signaling the state’s consent to the employer’s self-insurance plan and allowing them to proceed with self-insurance arrangements. The Director of Industrial Relations oversees the department but does not personally issue these certificates; the Department of Insurance regulates insurers, not the self-insurance process; and the Governor has no role in issuing the certificate.