Which statement is true about premium assessments for non self-insured employers?

• A. They are exempt from premium assessments
• B. They must participate in premium assessments
• C. They participate only if there is an exemption
• D. They have no obligation to participate

Answer: (B)

Premium assessments are mandatory for non self-insured employers because the workers’ compensation system is funded through employer premiums. If you don’t self-insure, your costs are covered by the standard premium schedule set by the workers’ compensation board, and every employer with employees participates to help fund benefits, safety programs, and the overall system. This means there isn’t an exemption or a no-obligation stance for regular non self-insured employers; participation is required to maintain coverage and the integrity of the program. (Self-insured employers, by contrast, have a different arrangement.)