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The factor that is not associated with self-insured retention (SIR) is the requirement for the insurer to handle initial claims. In self-insured retention, the insured party retains a portion of risk and is responsible for managing and handling claims up to a certain retention limit. This arrangement means the insured typically oversees the initial claims process, thus they must have the capability to manage those claims effectively.

In this model, once the retained limit is exceeded, the insurer takes over and covers the claims beyond that threshold. This contrasts with traditional insurance where the insurer manages claims from the outset. Therefore, the correct answer highlights that, unlike traditional insurance policies, SIR does not require the insurer to handle the initial claims, as the insured assumes that responsibility.

The other factors are indeed associated with self-insured retention. Management of claims by the insured is a fundamental aspect because it reflects the insured's active role in the claims process. A larger amount compared to traditional deductibles is typical since SIR often involves higher retention amounts. Lastly, a funding mechanism such as a self-insurance trust fund is frequently used to set aside resources to cover potential claims, aligning with the self-insured model.