Chapter 5-G: Workers Compensation

Under the Longshore and Harbor Workers' Compensation Act, how much would the surviving spouse of a deceased worker receive in benefits? A. 50% of the deceased worker's Average Weekly Wage B. 66 2/3% of the deceased worker's Average Weekly Wage C. 16% of the deceased worker's Average Weekly Wage D. 100% of the deceased worker's Average Weekly Wage

A. 50% of the deceased worker's Average Weekly Wage

Which of the following would not be covered under Employers' Liability insurance? A. Injuries caused by an employer's physical abuse of an employee B. Claims by others for the liabilities of the insured's employees C. Injuries caused by an employer's negligence D. Claims by an injured employee's relatives for consequential damages

A. Injuries caused by an employer's physical abuse of an employee

Which statement about the Federal Employers Liability Act is TRUE? A. It protects only interstate railroad workers and their families. B. It protects injured seamen by allowing them to sue for damages and to choose a jury trial. C. It provides federal government insurance for civilian employees. D. It provides benefits in the form of monthly payments and medical coverage to coal miners.

A. It protects only interstate railroad workers and their families.

In which state(s) is workers' compensation insurance elective? A. Texas only B. New York and Texas C. New Jersey only D. New Jersey and Texas

A. Texas only

An injured employee's PPI rating (or Impairment rating) is NOT: A. awarded before the employee reaches his Maximum Medical Improvement. B. determined by a doctor. C. paid weekly at 75% of the average weekly Temporary Total Disability benefit the employee was receiving before. D. stated as a percentage of loss of use.

A. awarded before the employee reaches his Maximum Medical Improvement.

According to the workers' compensation policy conditions, the insurer has the right to: A. inspect the workplace at any time. B. interview the employer at any time. C. cancel the policy at any time. D. increase premiums at any time.

A. inspect the workplace at any time.

The NCCI (National Council on Compensation Insurance): A. is a rating bureau that develops the guidelines for setting workers' compensation premiums that are used by most states. B. is a federal fund that steps in to cover claims when workers' compensation insurers become insolvent. C. is a rating bureau that develops the guidelines for setting workers' compensation premiums that are used by all 50 states. D. is a government organization that ensures that workers' compensation premiums are calculated fairly.

A. is a rating bureau that develops the guidelines for setting workers' compensation premiums that are used by most states.

An explosion takes place at Acme manufacturing plant. Four employees are injured. Gina broke her leg and has third degree burns on 10% of her body. George's left leg is hurt so seriously that it later needs to be amputated. Taylor is permanently blind in one eye, and Jason has third degree burns on 15% of his body. Which of these employees is eligible for Permanent Total disability benefits? A. Jason B. George C. Taylor D. Gina

B. George

A typical workers' compensation policy combines two basic forms of coverage. They are: A. Workers' Compensation and Products Liability B. Workers' Compensation and Employers Liability C. Professional Liability and Medical Payments D. Bodily Injury and Health

B. Workers' Compensation and Employers Liability

States that have special legislation that requires workers' compensation coverage to be provided exclusively by the state's workers' comp program are: A. competitive. B. monopolistic. C. elective. D. compulsory.

B. monopolistic.

Workers' compensation premiums are based on all of the following EXCEPT: A. the size of payroll. B. the race of the employee. C. the location of the business. D. the risk level of the work performed.

B. the race of the employee.

Acme Construction, Inc. has one contractor and one receptionist. The contractor makes $25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8 hours in 2010, so he made $200. The receptionist worked 10 hours, so she made $100. Therefore, Acme's entire payroll for 2010 was $300. Assume that, for every $100 of payroll, the WC rate for contractors is $50 and the rate for receptionists is $5. How much did Acme owe in WC premiums? A. $110 B. $60 C. $105 D. $55

C. $105

An employee receiving income benefits under Workers' Compensation insurance cannot receive more than: A. his own Average Weekly Wage. B. 75% of his own Average Weekly Wage. C. 66 2/3% of the State Average Weekly Wage. D. the Statewide Average Weekly Wage.

C. 66 2/3% of the State Average Weekly Wage.

Which statement about the Federal Employees Compensation Act is TRUE? A. It protects only interstate railroad workers and their families. B. It protects injured seamen by allowing them to sue for damages and to choose a jury trial. C. It provides federal government insurance for civilian employees. D. It provides benefits in the form of monthly payments and medical coverage to coal miners.

C. It provides federal government insurance for civilian employees.

States that allow private insurers to offer workers' comp coverage as an alternative to the state workers' comp fund are called: A. compulsory. B. monopolistic. C. competitive. D. elective.

C. competitive.

The amount of Permanent Partial Impairment Benefits that an injured employee might receive is based on: A. the number of her dependents B. the cost of her medical care C. her impairment rating D. her position in the company before the accident

C. her impairment rating

Workers' compensation insurance can provide compensation for all of the following, EXCEPT: A. lost income. B. death. C. lost vacation time. D. medical expenses.

C. lost vacation time.

Jacob is severely injured at work and receives $600 per week in Temporary Total Disability benefits under his Workers' Compensation insurance for 8 weeks. After 8 weeks, Jacob dies from his injury. What is the highest total amount that his dependents could receive in Death benefits? A. $100,000 B. $143,600 C. $150,000 D. $145,200

D. $145,200

Which of the following statements is TRUE? A. Exclusive remedy means that workers' compensation is only for full-time employees. B. Exclusive remedy means that any person at fault for an accident will have increased premiums. C. Exclusive remedy means an employer takes total responsibility for any accidents. D. Exclusive remedy means an injured employee cannot sue his employer.

D. Exclusive remedy means an injured employee cannot sue his employer.

In Florida, the employers of which of the following employees do not need to purchase Workers' Compensation insurance for them? A. Librarians B. Construction workers C. Teachers D. Professional athletes

D. Professional athletes