You do not have to notify the chief of a change in status where:

• A. The self insurer proposes to cease doing buisness in CA
• B. The self-insurer changes ownership
• C. The self-insurer has a change in minority shareholders
• D. The self-insurer has a material change in mangement

Answer: (C)

The requirement to notify the chief focuses on events that could change who controls the self-insurer or its ability to fund and manage the plan. A change in minority shareholders does not affect control or the entity’s capacity to meet its obligations, so it’s the scenario that generally does not require notifying the chief.

In contrast, proposing to cease doing business in California would limit the plan’s operations and its ability to cover claims; a change of ownership could shift control and financial responsibility; and a material change in management can affect how claims are handled and compliance is maintained. These situations are typically reportable because they can impact the self-insurer’s ongoing ability to fulfill obligations under the program.