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