CA SIP Final Exam | Latest Update 2026/2027 | 200 Practice
Questions & Detailed Answers | California SelfInsurance
Program Certification | A+ Graded
1. What is the primary legal authority governing workers' compensation in California?
A. California Insurance Code
B. California Labor Code
C. California Civil Code
D. California Health and Safety Code
Answer: B. California Labor Code
Explanation: The California Labor Code contains the primary statutory framework for workers'
compensation in California, including the selfinsurance provisions administered by the Office of
SelfInsurance Plans (OSIP).
2. Which agency administers the SelfInsurance Program in California?
A. Department of Insurance
B. Office of SelfInsurance Plans (OSIP)
C. Workers' Compensation Appeals Board
D. Division of Labor Standards Enforcement
Answer: B. Office of SelfInsurance Plans (OSIP)
Explanation: OSIP is the state agency responsible for certifying selfinsured employers and administering
California's selfinsurance program.
,3. How many active selfinsured employers were there in California as of January 1, 2026?
A. 2,500
B. 4,800
C. 7,049
D. 10,200
Answer: C. 7,049
Explanation: As of January 1, 2026, a total of 7,049 California employers were active selfinsured, not
counting past selfinsured employers still paying claims.
4. What is the exclusive remedy for an injured worker against their employer under California workers'
compensation law?
A. Civil lawsuit for damages
B. Workers' compensation benefits only
C. Both civil lawsuit and workers' compensation
D. Punitive damages
Answer: B. Workers' compensation benefits only
Explanation: The exclusive remedy doctrine means workers' compensation benefits are the sole remedy
available to an employee against their employer for workplace injuries, with limited exceptions.
5. How long does the private sector application process typically take for a new self insured employer?
,A. 7 days
B. 14 days
C. 21 days
D. 30 days
Answer: C. 21 days
Explanation: The private sector application process for a new employer takes about twentyone (21) days
from initial properly completed application to issuance of a certificate of authority to self insure.
6. What financial requirements must an organization meet to enter selfinsurance in California?
A. One year in business and one audited financial statement
B. Two years in business and two audited financial statements
C. Three calendar years in business and three years of audited financial statements
D. Five years in business and five years of audited financial statements
Answer: C. Three calendar years in business and three years of audited financial statements
Explanation: Current regulatory financial requirements include three calendar years in business, three
years of certified independently audited financial statements, and an acceptable credit rating for three
full calendar years prior to application.
7. What is the "coming and going" rule in California workers' compensation?
A. Injuries during commute are always compensable
B. Injuries during commute are never compensable
C. Travel to or from work is generally not deemed to be in the course of employment
, D. Employers must pay for all commute injuries
Answer: C. Travel to or from work is generally not deemed to be in the course of employment
Explanation: The "coming and going" rule provides that travel to or from work is deemed to be in the
course of employment unless the employee works at the same place, at set times, and set days.
8. What exception allows commute injuries to be compensable?
A. Personal comfort doctrine
B. Special mission exception
C. Recreational activity exception
D. Convenience exception
Answer: B. Special mission exception
Explanation: Injuries sustained during a commute are compensable if the employment subjects the
employee to special risk or special circumstances, including the special mission exception where a
worker is on an errand for the employer.
9. Who must approve an employer's application to become selfinsured?
A. Insurance Commissioner
B. Director of the Department of Industrial Relations
C. Governor of California
D. Workers' Compensation Appeals Board
Answer: B. Director of the Department of Industrial Relations
Questions & Detailed Answers | California SelfInsurance
Program Certification | A+ Graded
1. What is the primary legal authority governing workers' compensation in California?
A. California Insurance Code
B. California Labor Code
C. California Civil Code
D. California Health and Safety Code
Answer: B. California Labor Code
Explanation: The California Labor Code contains the primary statutory framework for workers'
compensation in California, including the selfinsurance provisions administered by the Office of
SelfInsurance Plans (OSIP).
2. Which agency administers the SelfInsurance Program in California?
A. Department of Insurance
B. Office of SelfInsurance Plans (OSIP)
C. Workers' Compensation Appeals Board
D. Division of Labor Standards Enforcement
Answer: B. Office of SelfInsurance Plans (OSIP)
Explanation: OSIP is the state agency responsible for certifying selfinsured employers and administering
California's selfinsurance program.
,3. How many active selfinsured employers were there in California as of January 1, 2026?
A. 2,500
B. 4,800
C. 7,049
D. 10,200
Answer: C. 7,049
Explanation: As of January 1, 2026, a total of 7,049 California employers were active selfinsured, not
counting past selfinsured employers still paying claims.
4. What is the exclusive remedy for an injured worker against their employer under California workers'
compensation law?
A. Civil lawsuit for damages
B. Workers' compensation benefits only
C. Both civil lawsuit and workers' compensation
D. Punitive damages
Answer: B. Workers' compensation benefits only
Explanation: The exclusive remedy doctrine means workers' compensation benefits are the sole remedy
available to an employee against their employer for workplace injuries, with limited exceptions.
5. How long does the private sector application process typically take for a new self insured employer?
,A. 7 days
B. 14 days
C. 21 days
D. 30 days
Answer: C. 21 days
Explanation: The private sector application process for a new employer takes about twentyone (21) days
from initial properly completed application to issuance of a certificate of authority to self insure.
6. What financial requirements must an organization meet to enter selfinsurance in California?
A. One year in business and one audited financial statement
B. Two years in business and two audited financial statements
C. Three calendar years in business and three years of audited financial statements
D. Five years in business and five years of audited financial statements
Answer: C. Three calendar years in business and three years of audited financial statements
Explanation: Current regulatory financial requirements include three calendar years in business, three
years of certified independently audited financial statements, and an acceptable credit rating for three
full calendar years prior to application.
7. What is the "coming and going" rule in California workers' compensation?
A. Injuries during commute are always compensable
B. Injuries during commute are never compensable
C. Travel to or from work is generally not deemed to be in the course of employment
, D. Employers must pay for all commute injuries
Answer: C. Travel to or from work is generally not deemed to be in the course of employment
Explanation: The "coming and going" rule provides that travel to or from work is deemed to be in the
course of employment unless the employee works at the same place, at set times, and set days.
8. What exception allows commute injuries to be compensable?
A. Personal comfort doctrine
B. Special mission exception
C. Recreational activity exception
D. Convenience exception
Answer: B. Special mission exception
Explanation: Injuries sustained during a commute are compensable if the employment subjects the
employee to special risk or special circumstances, including the special mission exception where a
worker is on an errand for the employer.
9. Who must approve an employer's application to become selfinsured?
A. Insurance Commissioner
B. Director of the Department of Industrial Relations
C. Governor of California
D. Workers' Compensation Appeals Board
Answer: B. Director of the Department of Industrial Relations
