You do not have to notify the Manager of a change in status when which scenario occurs?

You do not have to notify the Manager of a change in status when which scenario occurs?

• A. The self-insurer changes ownership.
• B. There is no change in ownership.
• C. The self-insurer has a change in minority shareholders.
• D. The self-insurer has a material change in management.

Answer: (C)

The thing being tested is when changes in a self-insurer’s status must be reported to the Manager. Not every change needs notice—only those that could affect control, governance, or the plan’s ability to meet obligations. A change in minority shareholders doesn’t alter who runs the company or the core financial responsibility of the self-insurer. It doesn’t shift control or the ability to pay workers’ compensation claims, so there’s no reporting requirement for that scenario. In contrast, changes that affect ownership (especially if control could change) or any material change in management could impact the plan’s oversight or financial stability and would require notifying the Manager. So the scenario where you do not have to notify is a change in minority shareholders.

The thing being tested is when changes in a self-insurer’s status must be reported to the Manager. Not every change needs notice—only those that could affect control, governance, or the plan’s ability to meet obligations.

A change in minority shareholders doesn’t alter who runs the company or the core financial responsibility of the self-insurer. It doesn’t shift control or the ability to pay workers’ compensation claims, so there’s no reporting requirement for that scenario. In contrast, changes that affect ownership (especially if control could change) or any material change in management could impact the plan’s oversight or financial stability and would require notifying the Manager. So the scenario where you do not have to notify is a change in minority shareholders.