78. An employer who wishes to be self-insured for workers' compensation liability will have to
Answer: C
An employer who wishes to be self-insured for workers' compensation liability will have to post a surety bond to guarantee the employer's financial ability to pay workers' claims.
To be self-insured for workers' compensation, an employer must provide financial assurance that they can cover potential claims. Posting a surety bond is a common requirement to demonstrate this financial capability.
A) obtain the agreement of all employees to such a plan
This option is incorrect because employers do not need unanimous agreement from employees to establish a self-insurance plan. The decision to self-insure is typically made at the organizational level, based on financial assessments and state regulations, rather than requiring employee consent.
B) participate in the state's second injury fund
While participation in a second injury fund may offer benefits in certain situations, it is not a requirement for an employer to self-insure for workers' compensation. The second injury fund is designed to assist employers in reducing the costs associated with re-injuries but does not directly relate to the self-insurance requirement.
C) post a surety bond to guarantee the employer's financial ability to pay workers' claims
Posting a surety bond is indeed a requirement for employers who choose to self-insure their workers' compensation liabilities. This bond acts as a guarantee to ensure that the employer can fulfill their financial obligations regarding workers' compensation claims.
D) join with other self-insurers to create a large funding pool for the settlement of claims
This option is incorrect because while some employers may choose to collaborate with others in self-insurance arrangements, it is not mandatory. Self-insurance can be done independently, and joining a funding pool is not a requirement for all self-insurers.
Conclusion
The requirement to post a surety bond is a crucial aspect of self-insurance for workers' compensation, ensuring that employers have the financial means to cover claims. Other options either misrepresent the requirements or describe optional arrangements rather than mandatory steps. Thus, option C is the definitive choice for this question.