If a self-insured employer has not adequately funded its trust account for over a week, preventing payments on claims, what action is required?

• A. A Tell the employer to deposit funds immediately
• B. B Tell the employer to deposit funds within 14 days
• C. C Notify Chief immediately
• D. D No action is necessary

Answer: (C)

When a self-insured employer’s trust account isn’t funded for an extended period and claims can’t be paid, the situation poses a risk to workers’ benefits and regulatory compliance. The correct action is to notify the Chief immediately so the regulatory authority can quickly intervene, assess the funding shortfall, and direct appropriate corrective steps. This immediate escalation helps protect claim payments, determine necessary sanctions or remedies, and prevent further noncompliance.

Telling the employer to deposit funds or giving a 14-day deadline would not provide the required regulatory oversight or prompt action, and taking no action at all would leave claim payments at risk and the plan in potential violation.