Lesson 8- Workers Comp/ Other Coverages Flashcards
States that coverage is required for all employers
Compulsory law
Type of business involved, # of employees, & total payroll makes up what
Premiums charged
Used for premium determination because it is considered the best measure of exposure to the risk of employee injury
Total remuneration (Premium Basis)
Method of rewarding employers with better than average loss experience
Experience Modification Factor
Premium charged at policy inception
Estimate
Used to determine final premium at end of policy period
Actual remuneration & proper work classifications
3 types of employment exempted from Workers Comp
Farms
Casual Employment
Domestic Servants
Endorsement added to Workers Comp where insurer agrees to pay benefits to employees not covered or exempted
Voluntary Compensation Endorsement
5 major benefit categories provided by Workers Comp
Partial disability benefits Unlimited medical expenses Rehabilitation expenses Survivor expense Income benefits
Two rehabilitation benefits
Physical therapy
Occupational (Vocational) therapy
Two survivor benefits
Fixed burial allowance
Weekly indemnity payments
Act passed in 1927 provided payment of compensation and medical benefits for employees employed in maritime employment
US Longshoreman and harbor workers compensation
Examples of MariTime employment
Long shoring Stevedoring Harbor work Ship repairing (onshore or offshore) Building
Permits Cruise of American vessels who sustains illnesses to maintain right of actions directly against their employer when there is reason to believe that illness is result of employers negligence
Jones act and admiralty law compensation
Act passed in 1908 before Worker’s Comp statutes were created & primarily creates cause of action by employee for injury caused by negligence of railroad
Federal employers liability act (FELA)
Provides system of Worker’s Comp coverage for civilian employees of the US government
Federal employees compensation act (FECA)
Next name for assigned risk pools
Residual market
Where the purpose is to encourage the hiring of the physically handicapped employee who has previously been impaired
Second injury fund
Covers cost of emergency trip back to the US up to a maximum of $5000
Repatriation expense (under foreign coverage endorsement)
Non-standard form of coverage that is designed to fill in any gaps which exist in some property policies
Difference in conditions (DIC)
Written on an all risk basis and is intended to cover loss from unusual or catastrophic exposures that are not covered by basic insurance policies
Difference in conditions (DIC)
Policy allows insured to reduce insurance cost by eliminating duplicate coverages & no coinsurance clause/requirement
Difference in conditions (DIC)
Provides coverage for direct & indirect loss arising from the breakdown of covered equipment
Boiler and machinery insurance
Examples of covered equipment
Equipment built to operate under internal pressure/vacuum
Electrical/mechanical equipment used to generate transmit or utilize energy
Communication/computer equipment
If coverage for business income/extra expense is included, the coverage is extended to include _________
Utility interruption
Provide coverage for ones legal liability against loss or damage arising out of death/injury to any person as a result of negligence in the distribution, sale or servicing of alcohol by any insured employee
Joint underwriting association – liquor liability
Purpose of surplus lines insurance is to locate coverage for specially hazardous exposures such as
Amusement parks
Music or rock concerts
Movie filming
Auto/boat racing
When coverage for surplus lines insurance is placed with an unauthorized company by a surplus lines broker
Exporting
Two classifications of aviation insurance coverage
Direct loss and liability coverages
Provides insurance against direct damage from the perils defined on the schedule of coverage attached to named-peril or all-risk basis, occurring in the air/ground
Aircraft Hull insurance
Covers of Bailey’s liability with respect to aircraft belonging to others what is stored for safekeeping or repair
Hangerkeepers liability
Provides basic property insurance, against direct loss of property as defined in the standard fire policy and vandalism & malicious mischief
Joint underwriting and reinsurers association (fair) plan
Aids in improving the property conditions in the V.I. and stabilize the property market in general
FAIR Plan
For spoilage damage coverage to apply
1) Raw materials/products must be in storage or course of being manufactured
2) Insured must own or be liable for products
3) Spoilage must be due to lack of power, heat etc.
Form completed each year which must reach insurer within 3 months of annual report date or coinsurance would apply
Annual Report of Values Form
When insured’s owned refrigerated covered property is covered against spoilage while stored on premises
Refrigeration Interruption Coverage
