For a master certificate applied for after July 1, 1994, what are the minimum net worth and income requirements?

The correct choice reflects the established minimum net worth and income requirements for a master certificate applied for after July 1, 1994, which are set to ensure that entities are financially stable enough to meet their workers' compensation obligations. Specifically, the requirement of a minimum net worth of $5 million alongside a minimum income of $500,000 indicates a focus on capability and liability in sustaining coverage and claims payments.

This requirement is intended to protect the interests of employees who may rely on the workers' compensation system for benefits in the event of an injury or work-related issue. By maintaining these financial thresholds, the system aims to minimize the risk of defaults and ensures that self-insured employers have sufficient capital to cover potential claims. The high bar for both net worth and income reflects the significant financial obligations that can arise in the workers' compensation context.

Other options listed do not align with the established requirements. The net worth and income thresholds for self-insurers are designed to create a barrier to entry that requires adequate financial backing, ensuring that those who wish to self-insure can adequately cover potential liabilities stemming from workplace injuries.