Workers Comp Quiz Q's

Workers compensation rating is developed by applying a rating bureau job classification rate to each A: $1,000 of payroll B: $100 of payroll C: $250 of payroll D: $500 of payroll

$100 of payroll

A premium discount is the term that describes when an insured owes a total standard premium greater than A: $15,000 B: $1,000 C: $5,000 D: $10,000

$5,000

An employer that qualifies for a self-insured workers compensation plan may wish to further limit his liability against catastrophic losses by purchasing excess insurance coverage called A: Catastrophic excess coverage B: Self-insurance liability C: Extreme liability coverage D: Aggregate excess coverage

Aggregate excess coverage

Employers liability insurance, Part Two of a standard WC&EL policy form, excludes A: An intentional act that is caused by the insured B: Liability to a third party for claims arising out of injury to an employee C: Bodily injury caused by accident when the injury occurs during the policy period D: Bodily injury caused by or aggravated by disease during the policy period

An intentional act that is caused by the insured

Workers compensation laws provide all of the following types of benefits EXCEPT A: Compensatory benefits B: Medical benefits C: Rehabilitation benefits D: Death benefits

Compensatory benefits

States with monopolistic state workers compensation funds A: Sell workers compensation insurance through private insurers that are in the state and receive a "kickback" for all policies sold on an annual basis B: Do not allow private insurers to be licensed to write workers compensation coverage C: Provide workers compensation insurance through managed risk plans D: Require all employers in their state to purchase workers compensation insurance regardless of their financial capacity

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? A: Experience modification factor B: Workers classification factor C: Merit rating plan D: Arbitration plan

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) A: Retrospective rating plan B: Experience rating plan C: Judgment rating plan D: Manual rating plan

Experience rating plan

The voluntary compensation endorsement provides statutory coverage for which types of employees? A: Factory workers B: Police officers C: Teachers D: Farmworkers

Farmworkers

Which federal act provides benefits to injured civilians who are employed by the federal government? A: Federal Employees Compensation Act B: Federal Employers Liability Act C: Jones Act D: US Longshore and Harbor Workers Compensation Act

Federal Employees Compensation Act

If an employer in a state with elective workers compensation laws chooses not to be subject to the state's workers compensation laws, what does the employer lose? A: Its common law defenses against liability suits B: Its ability to provide group health insurance C: Its right to hire persons with disabilities D: None of these

Its common law defenses against liability suits

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 A: Assigned risk plans B: Competitive state funds C: Second injury funds programs D: Self-insurance plans

Second injury funds programs

Which workers compensation conditions states that the first named insured will act on behalf of all insureds under the policy? A: Inspection B: Cancellation C: Sole representative D: Transfer of your rights and duties

Sole representative

Crews of ships are covered by A: The Jones Act B: US Longshore and Harbor workers compensation act C: States' workers compensation laws D: Federal Employees Liability act

The Jones Act

Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases? A: The employee and employer in equal shares B: The employee C: The employer, regardless of whether it was at fault for the injury or disease D: The employer, but only if it was at fault for the injury or disease

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 employers liability policy when A: The state has a monopolistic workers compensation fund B: The insured expects to extend operations to that state C: The insured has operations in the state when the policy is written D: The insurer is not licensed to write workers compensation in that state

The insured expects to extend operations to that state

What must happen before an insured is eligible for Workers Compensation insurance through the state assigned risk plan? A: They must only be injured at work B: They must be 30 years old C: They must be refused coverage by the state Workers Compensation Fund and by 2 or more other insurers D: They must be refused for coverage by their provider

They must be refused coverage by the state Workers Compensation Fund and by 2 or more other insuers