Self-Insurance Entry Prerequisites

Private Standalone Employer Prerequisites

• Three calendar years in a legally authorized business form.
• An A or B credit rating for three full calendar years prior to application submission. If the rating is not acceptable, contact the OSIP Chief.
• If you meet the financial requirements, please send 3 years of certified, independently audited financial statements to SIP@dir.ca.gov so that OSIP can determine if your company qualifies for self-insurance.

Private Group Employer Prerequisites

CCR § 15484(e) requires that each group self‐insurer needs to have enough income from group members to annually fund the following:

1. 1.5 times the group self‐insurer's three‐year average total benefits paid as reported on their most recent Self‐Insurer's Annual Report;
2. The expected administrative expenses needed for the group self‐insurer's daily operations during the current calendar year;
3. The continued posting of the required security deposit; and
4. Any additional amount determined by the Chief to ensure adequate funding of the group self‐insurer.

Public/JPA Employer Prerequisites

There are no financial prerequisites for public or JPA employers.