One alternative to the insurance crisis faced by school districts is self-insurance, either through pooling or capital market funding. After a brief discussion of the insurance issue, research and literature dealing specifically with self-insurance through pooling and capital market funding are described. Finally, an assesment is made of the various alternatives, and several considerations are presented. In the ideal situation, self-insurance is established on an individual basis through market funding. Pools are a viable alternative if the pools are set up and managed carefully. The best funding method for self-insurance programs, whether independent or pools, is to capitalize the program through a bond issue. The one threat in the capital market approach is the catastrophic claim that might occur. It is recommended that self-insurance progams be carefully researched, designed, and managed. (14 references) (SI)