Workers Compensation Insurance
Workers compensation rating is developed by applying a rating bureau job classification rate to each
$100 of payroll
A premium discount is the term that describes when an insured owes a total standard premium greater than
$5,000
Which federal act provides benefits to injured civilians who are employed by the federal government?
Federal Employees Compensation Act
Crews of ships are covered by the
Jones Act
Shipbuilders and repairers are covered by the
U.S. Longshore and Harbor Workers Compensation Act.
Which of the following statements is true regarding the premium computation for workers compensation insurance?
a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis
Workers compensation statutes provide coverage for disease that occurs as a result of working in the employer's working environment. Which of the following is an example of a disease that would be covered by such provisions?
an employee of a chemical plant who suffers from cancerous tumors; an employee of municipal fire department who suffers from smoke inhalation; an employee of a data-processing company who suffers from carpel tunnel syndrome
Workers compensation statutes provide coverage for disease that occurs as a result of working in the employer's working environment. Which of the following is an example of a disease that would NOT be covered by such provisions?
an employee of a medical facility who suffers from a common cold
Workers compensation benefits are provided for an employee injury or death that arises out of the course of normal employment in all of the following situations
an employee who delivers overnight packages is injured while voluntarily running the "package race" at the mandatory company picnic; an employee suffers an injury while working at a jobsite; an employee working as a over-the-road truck driver suffers injury while loading freight at a vendor's dock
Employers liability insurance, Part Two of a standard workers compensation and employers liability (WC&EL) policy form excludes
an intentional act that is caused by the insured
According to the conditions of a workers compensation policy, the insurer has the right to inspect the insured workplace
at any time
An employee is injured visiting the employer's out-of-state site. How will the workers compensation benefits be determined?
benefits will be provided if the state was listed on the policy information page
Workers compensation laws provide all of the following types of benefits EXCEPT
compensatory benefits
Workers Compensation provides all of the following benefits:
disfigurement, rehabilitation, survivors
States with monopolistic state workers compensation funds
do not allow private insurers to be licensed to write workers compensation coverage
What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?
experience modification factor
If the premium charged for a particular insured is increased or decreased for a future period based on that insured's loss experience for a period in the recent past, the policy uses a(n)
experience rating plan
The voluntary compensation endorsement provides statutory coverage for which type of employee?
farmworkers
Which of the following is in regard to the conditions found in a workers compensation policy?
if the policy period is longer than 1 year and 16 days, all policy provisions will apply as though a new policy was issued on each annual anniversary date; the insured's right and duties may not be transferred to anyone else without the insurer's written consent; the first named insured will act on behalf of all insureds under the policy
If an employer in a state with elective workers compensation laws chooses not to be subject to those laws, what does the employer lose?
its common law defense against liability suits
All of the following are factors in rating workers compensation insurance
job classification, payroll, loss experience
Which of the following is NOT a duty of the employer/insured if an injury occurs at the workplace?
make voluntary payments for treatment of the worker's injury
Workers compensation laws provide all of the following types of benefits
medical benefits, rehabilitation benefits, death benefits
A plant worker for a chemical manufacturer was recently diagnosed with a rare blood disease. She told her doctor that her job required her to handle industrial waste chemicals. Which of the following types of injuries is covered under the workers compensation policy?
occupational disease caused or aggravated by a condition of employment
Workers compensation benefits are provided for an employee injury or death that arises out of the course of normal employment in all of the following situations EXCEPT
on his evening stroll, an employee of an advertising company is injured while watching a competitor's billboard sign being removed from an advertising site
Workers compensation will pay under which of the following situations?
paid without consideration of fault or negligence on the part of either employee or employer
Which of the following is a duty of the employer/insured if an injury occurs at the workplace?
provide the name and address of the injured worker and any witnesses to the injury; provide immediate medical care required by the law; notify the insurer at once
Workers Compensation provides all of the following benefits EXCEPT
rental
Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT
second injury funds program
Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following
self-insurance plans; assigned risk plans; competitive state funds
In order to be covered by the U.S. Longshore and Harbor Workers Compensation Act, a worker must meet the requirements of the
situs and status test
Which workers compensation conditions states that the first named insured will act on behalf of all insureds under the policy?
sole representative
Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases?
the employer, regardless of whether it was at fault for the injury or disease
According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three- other states' insurance of the workers compensation and employer liability policy when
the insured expects to extend operations to that state
The voluntary compensation endorsement in a workers compensation policy provides that the insurer will pay statutory benefits to the insured person in exchange for what?
the insured person must release the employer and the insurer from further liability
Which of the following is INCORRECT in regard to the conditions found in a workers compensation policy?
the insurer may inspect the workplace after giving the insured 5 days' notice
What is the primary objective of workers compensation?
the payment of benefits to employees for injuries arising out of their employment
Prior to state-directed workers compensation statutes being enacted, employees had
to sue an employer for the "loss" and prove that the employer was at fault