Commercial Coverages

Bob works as a forklift driver in a manufacturing plant. When he is at work, he is covered by workers compensation insurance. His employer has also included a major medical plan as part of his benefit package, so Bob is also covered by insurance outside of working hours, as well. Which insurance term best describes this arrangement? A) Combination coverage B) 24-hour coverage C) Comprehensive coverage D) Workers medical coverage

B) 24-hour coverage

Which of the following selections correctly describes the California State Compensation Insurance Fund? A) A state entity that exists to pay compensation if an employee is injured while working for an employer who is uninsured, and the employer fails to pay or post a bond to pay compensation due to the employee B) A state entity that exists solely to transact Workers Compensation Insurance on a nonprofit basis C) A state entity that exists to protect policyholders against failure in the performance of Workers Compensation policies because of the impairment or insolvency of a member insurer that issued the policy D) None of these correctly describe the California State Compensation Insurance Fund

B) A state entity that exists solely to transact Workers Compensation Insurance on a nonprofit basis

Which of the following is not a factor in determining rates charged by the California State Compensation Insurance Fund for insurance issued by it? A) The manner in which work is conducted B) A reasonable regard for the accident experience and history of each such insured C) The extent to which the employees in a particular establishment have or have not person dependent on them for support D) A reasonable regard for the insured's means and methods of caring for injured persons

C) The extent to which the employees in a particular establishment have or have not person dependent on them for support

All of the following may be covered under the Employers Liability policy EXCEPT A) Losses that occur as a result of dual capacity relationships between the employer and employee B) Employees eligible for 24-hour coverage C) Exempt employees D) Consequential bodily injuries to a spouse of an employee

B) Employees eligible for 24-hour coverage

An employer is on the verge of bankruptcy. To save money, the employer decides to cancel its workers compensation plan. Which of the following is true? A) If the business meets the state's definition of small employer, then workers compensation coverage is not necessary anyway B) This business may be closed under a cease and desist order issued by the Department of Industrial Relations C) Assuming that the business really is on the verge of bankruptcy, it could appeal to the State Insurance Department for exempt status D) The business is not required to maintain workers compensation insurance, provided that the employees are notified 90 days before policy cancellation

B) This business may be closed under a cease and desist order issued by the Department of Industrial Relations

What is the purpose of California's State Compensation Insurance Fund (SCIF)? A) To provide insurance to people who would be financially unable to obtain it otherwise B) To make workers compensation insurance available, especially to smaller companies with more limited payrolls C) To provide income replacement for California residents who are temporarily or permanently disabled D) To pay claims on behalf that are unable to pay claims due to insolvency

B) To make workers compensation insurance available, especially to smaller companies with more limited payrolls

"24-hour coverage" includes health insurance and A) Term life insurance B) Workers compensation insurance C) Long-term care insurance D) Whole life insurance

B) Workers compensation insurance

Which of the following best describes the term "24-hour coverage" in relation to workers compensation insurance? A) This is typically the most expensive type of workers compensation, in which any injury, whether occurring at work or at home, is covered by workers compensation insurance B) This represents the idea that workers compensation coverage is not limited to certain hours C) This is a special type of workers compensation insurance used for people who may be on the job 24 hours a day, such as military personnel D) This represents a two-pronged coverage: workers compensation during work hours and regular medical coverage outside of work

D) This represents a two-pronged coverage: workers compensation during work hours and regular medical coverage outside of work