CHAPTER 14`WORKERS COMP
Which type of system would provide Workers' Compensation benefits through a state fund only? A Monopolistic B Competitive C Elective D Compulsory
A - In monopolistic states, Workers' Compensation insurance is only available through a state fund.
Workers' Compensation provides coverage for all of the following, except: A Pain and suffering B Disability income C Medical expenses D Death
A - Pain and suffering are not covered under Workers' Compensation.
What is the primary objective of Workers' Compensation? A To provide a payment of benefits to employees for injuries that arise out of their employment B To improve employer and employee relations C To provide accident coverage for employees both on and off the job D To improve the employee's working conditions
A - Workers' Compensation provides benefits to workers injured on-the-job without regard to fault.
A claims adjuster would not pay which of the following Employers Liability claims? A An employee is injured while playing softball at a company picnic at a nearby park B A single mother claims reimbursement expenses for the housekeeper she hired while she remains on strict bed rest as the result of a work injury C An employee claims reimbursement expenses for the transportation service her daughter takes to school, after suffering a work-related injury that prevents her from driving D An injured employee's daughter claims mental anguish over her father's injury at work
A -An injury must arise out of actual employment to provide cause for a claim under the Employers Liability section of the Workers' Compensation policy.
Under the U.S. Longshoremen and Harbor Workers' Compensation Act, all of the following are covered, except: A The crew of a ship B Workers who load and unload ships C Workers who repair ships D Workers who build ships
A -The U.S. Longshoremen and Harbor Workers' Compensation Act applies to workers who load, unload, build, or repair ships (but not to the crew of the ship).
Workers' Compensation does not cover which of the following? A Medical expenses B Pain and suffering C Disability income benefits D Death
B - Pain and suffering are not covered under Workers' Compensation.
The part of the Workers' Compensation Policy that defines how coverage applies in other states is: A Part Six B Part Three C Part Four D Part Five
B - Since an employee may file for Workers' Compensation benefits of the state in which he/she is injured, it is important that all states where the employer has operations be included in coverage. Part Three provides this coverage, applying to states individually listed in the Declarations.
The Workers' Compensation Insurance Schedule of Benefits applies to: A Temporary Partial disabilities B Permanent Partial disabilities C Temporary Total disabilities D Permanent Total disabilities
B - The Schedule of Benefits applies for specific Permanent Partial disabilities such as the loss of an eye, hand, limb, etc. These benefits are usually paid in addition to other income benefits.
Which statement is false regarding Workers' Compensation? A It covers investigation and defense costs B It pays medical expenses, loss of time benefits and death benefits C The premium is paid by the employee D Payment is made without regard to negligence
C - The cost of the Workers' Compensation program is paid by the employer.
Under the Workers' Compensation policy, physical therapy benefits are a type of: A Survivor benefit B Medical benefit C Rehabilitation benefit D Disability benefit
C - The rehabilitation benefits physical therapy and vocational training are utilized with the objective of returning the injured employee to work as soon as possible.
All of the following statements regarding the Voluntary Compensation endorsement is correct, except: A The employees must waive their right to sue and accept coverage under the endorsement B The class of employees to be covered must be provided C It exempts employers from state Workers' Compensation law. D The state of employment must be provided
C - This endorsement is used when an employer wishes to provide Workers' Compensation benefits to employees, although the law does not require the employer to provide coverage.
To whom are Workers' Compensation survivor benefits paid? A An employer who survives an attack by an employee B A worker who survives an injury C The spouse and/or dependent child of a deceased worker D The employer of a deceased employee
C -If a workplace injury results in the employee's death, survivor benefits are paid to the employee's surviving spouse and/or children.
Which of the following is true regarding the Self-Insured Workers' Compensation Program? A Benefits under self-insurance differ from those provided by Workers' Compensation insurers B Self-insurance is allowed in all states C Self-insurance for Workers' Compensation is most generally used by smaller employers, who cannot afford to purchase Workers' Compensation insurance D Sometimes large employers are attracted to self-insurance plans because losses can be predictable and benefits are capped by statute
D - Self-Insurance is most attractive to larger employers, particularly those in hazardous industries, who feel that they can pay and administer benefits for less than the cost of purchasing insurance.
Which of the following workers would be covered by The Federal Employers Liability Act? A An employee of the Federal government B A shipbuilder C A sailor injured by the negligence of others D A railroad worker
D - The Federal Employers Liability Act (FELA) applies to interstate railroad workers. This is not to be confused with The Federal Employees Compensation Act, which applies to all U.S. civilian employees.
Which statement is false regarding Workers' Compensation? A A covered injury must be reasonably related to employment B A covered injury must occur while the employee is at work or working C Some types of work are not covered D Employees may elect not to be covered at policy inception or renewal
D-Workers' Compensation is the sole remedy for work related injuries. An employee cannot elect not to be covered.