Comm Chp 9

Question 1

Workers Compensation Statute

Answer 1

a statute that obligates employers, regardless of fault, to pay specified medial, disability, rehabilitation, and death benefits for their employees job related injuries and diseases

Question 2

Occupational Disease

Answer 2

disease thought to be caused by work or the work environment

Question 3

Temporary Partial Disability

Answer 3

a disability caused by a work related injury or disease that temporarily limits the extent to which an employee can preform job duties for a period of time

Question 4

Temporary Total Disability

Answer 4

a disability caused by a work related injury or disease that temporarily renders an injured worker unable to preform any job duties for a period of time, the worker eventually makes a full recovery and can resume all job duties

Question 5

Employee

Answer 5

a person hired to preform services for another under the direction and control of the other party call the employer

Question 6

Independent Contractor

Answer 6

a person or organization hired to preform services without being subject to the hirers direction and control regarding work details

Question 7

United States Longshore and Harbor Workers Comp Act (LHWCA)

Answer 7

a federal statue that eliminates the right of most maritime workers ( other than crew members of vessels) to sue their employer and in return requires such employers to provide injured or ill workers with benefits like those provided by state workers compensation statues

Question 8

Competitive State Fund

Answer 8

a state fund that sells workers compensation insurance in competition with private insurers

Question 9

Monopolistic State Fund ( Exclusive state fund)

Answer 9

a facility, owned and operated by a state government that provides workers comp insurance and that does not permit ay other insurers to sell workers comp insurance in that state ( nd, oh, wa, wy)

Question 10

Employers Mutual Insurance Company

Answer 10

a mutual insurer established by a states legislature to write workers comp insurance for any qualified employer in that state

Question 11

Specific Excess Insurance

Answer 11

insurance that covers loss due to a single occurrence only for the amount that exceeds the policy retention

Question 12

Workers Compensation and Employee Liability Policy (WC&EL)

Answer 12

the policy used in most states to provide workers comp and employee liability insurance

Question 13

Stop Gap Coverage

Answer 13

coverage for employers liability that private insurers provide to employers operating in a monopolistic fund state that does not include such insurance in its workers comp policies

Question 14

Voluntary Compensation and Employee Liability Coverage Endorsement

Answer 14

endorsement that amends WC&EL policy to cover employees who are not subject to a workers comp statue

Question 15

United States Longshore and Harbor Workers’ Compensation Act Endorsement

Answer 15

an endorsement that amends WC&EL policies to cover insureds obligations under the US LHWCA

Question 16

Experience Mod

Answer 16

a rate multiplier derived from the experience rating computation

Question 17

Retrospective Rating Plan

Answer 17

a rating plan that adjust the insured premium for the current policy period based on the insurers loss experience during the current period; paid losses or incurred losses may be used to determine loss experience

Question 18

Large Deductible Plan

Answer 18

an insurance policy with a per occurrence or per accident deductible of $100,00 or more

Question 19

Omicron Corporation currently does business in Colorado, Nebraska, and Kansas. These states are listed in Item 3.A on the Information Page of Omicron’s Workers Compensation and Employers Liability Insurance Policy. The company is hoping to expand its operations into Utah, Arizona, and New Mexico during the next year. Which one of the following statements is correct with respect to workers compensation insurance in the states where Omicron hopes to expand?

Answer 19

C. Omicron should include Utah, Arizona, and New Mexico in Item 3.C on the Information Page and advise the insurer immediately if the company begins operations in any of those states.

Question 20

Which one of the following items found in the information page specifies which states the workers compensation policy applies?

Answer 20

Item 3

Question 21

Which one of the following statements is true with regard to workers compensation statutes?

Answer 21

Federal government workers are excluded from workers compensation because they are covered under alternate plans.

Question 22

A state should be listed in Item 3.C of the Workers Compensation and Employers Liability Insurance Policy Information Page under which one of the following circumstances?

Answer 22

D. The insured expects operations might be extended to that state.

Question 23

The Voluntary Compensation and Employers Liability Coverage Endorsement to a workers compensation policy is needed for which one of the following reasons?

Answer 23

he workers compensation laws of most states exempt some types of employment from statutory workers compensation benefits.

Question 24

Which one of the following would be covered under Part Two of the Workers Compensation and Employers Liability Insurance Policy?

Answer 24

An employee is exposed to disease during the policy period but symptoms don’t appear until after the employee is fired.

Question 25

Which one of the following statements is correct with respect to large deductible plans for workers compensation insurance?

Answer 25

They allow the insured, in effect, to self-insure most of its workers compensation exposures.

Question 26

When an employee at Lambda’s plant accidentally backs a forklift into a tank containing a caustic chemical, the tank ruptures and six employees are badly burned. Although all of the workers recover fully, each of the six requires $25,000 in medical treatment. Which one of the following best describes how Lambda’s insurer would respond?

Answer 26

The insurer would pay the benefits required by the workers compensation law up to the limits found within the law itself.

Question 27

ill’s Premium Packing (BPP) operates a fruit and vegetable canning operation. It purchases its produce from growers in three states in the Northeast.

Answer 27

The insurer would defend the insured against the employee’s suit and pay any settlement awarded, subject to the stipulated limits of liability.

Question 28

factory fire caused by an employer’s negligence results in the death of one employee. The employee was the sole parent and caregiver of a disabled young adult. The young adult sues the employer for loss of services. Which one of the manufacturer’s policies would respond to this suit?

Answer 28

e workers compensation and employers liability policy would respond as loss of services is considered under employers liability insurance.