Self-Insurers' Security Fund

Alternative Security program assessments - self-insured corporations meeting certain minimum credit quality standards are assessed annual fees for participation in the asp program in lieu of posting a Security deposit. The asp program provides protection to self-insured employers in the case of any future defaults. Sisf uses the assessments to provide funds for any future defaults and to purchase catastrophe coverage/hedge instruments for certain loss exposures associated with the program.

Security deposits and recoveries - sisf receives revenue from surety bonds and deposits when the organization assumes, as stipulated in the labor code, the responsibility to administer the funds necessary to pay workers' compensation obligations against an insolvent self-insurer.