Which of the following is true of self-insured employers?

Self-insured employers are responsible for managing and paying for their own workers' compensation claims. This means that rather than transferring the risk to an insurance company, they retain that risk and directly handle any associated claims that arise from workplace injuries or illnesses. This arrangement allows them to have greater control over how claims are managed and the costs associated with those claims.

The option regarding handling claims directly accurately reflects the operational model of self-insured employers, as they typically have their own processes in place for managing claims and ensuring compliance with state regulations. This ability to manage their own claims distinguishes self-insured employers from those who rely entirely on third-party insurance providers for coverage and claims management.

In contrast, self-insured employers might choose to purchase excess coverage to protect against large claims, which speaks to the nature of risk management rather than outright prohibition of handling claims or requirements for purchasing insurance.