Lesson 8- Workers Comp/ Other Coverages

Question 1

States that coverage is required for all employers

Answer 1

Compulsory law

Question 2

Type of business involved, # of employees, & total payroll makes up what

Answer 2

Premiums charged

Question 3

Used for premium determination because it is considered the best measure of exposure to the risk of employee injury

Answer 3

Total remuneration (Premium Basis)

Question 4

Method of rewarding employers with better than average loss experience

Answer 4

Experience Modification Factor

Question 5

Premium charged at policy inception

Answer 5

Estimate

Question 6

Used to determine final premium at end of policy period

Answer 6

Actual remuneration & proper work classifications

Question 7

3 types of employment exempted from Workers Comp

Answer 7

Farms
Casual Employment
Domestic Servants

Question 8

Endorsement added to Workers Comp where insurer agrees to pay benefits to employees not covered or exempted

Answer 8

Voluntary Compensation Endorsement

Question 9

5 major benefit categories provided by Workers Comp

Answer 9

Partial disability benefits
Unlimited medical expenses
Rehabilitation expenses 
Survivor expense
Income benefits

Question 10

Two rehabilitation benefits

Answer 10

Physical therapy

Occupational (Vocational) therapy

Question 11

Two survivor benefits

Answer 11

Fixed burial allowance

Weekly indemnity payments

Question 12

Act passed in 1927 provided payment of compensation and medical benefits for employees employed in maritime employment

Answer 12

US Longshoreman and harbor workers compensation

Question 13

Examples of MariTime employment

Answer 13

Long shoring 
Stevedoring 
Harbor work 
Ship repairing (onshore or offshore)
Building

Question 14

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

Answer 14

Jones act and admiralty law compensation

Question 15

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

Answer 15

Federal employers liability act (FELA)

Question 16

Provides system of Worker’s Comp coverage for civilian employees of the US government

Answer 16

Federal employees compensation act (FECA)

Question 17

Next name for assigned risk pools

Answer 17

Residual market

Question 18

Where the purpose is to encourage the hiring of the physically handicapped employee who has previously been impaired

Answer 18

Second injury fund

Question 19

Covers cost of emergency trip back to the US up to a maximum of $5000

Answer 19

Repatriation expense (under foreign coverage endorsement)

Question 20

Non-standard form of coverage that is designed to fill in any gaps which exist in some property policies

Answer 20

Difference in conditions (DIC)

Question 21

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

Answer 21

Difference in conditions (DIC)

Question 22

Policy allows insured to reduce insurance cost by eliminating duplicate coverages & no coinsurance clause/requirement

Answer 22

Difference in conditions (DIC)

Question 23

Provides coverage for direct & indirect loss arising from the breakdown of covered equipment

Answer 23

Boiler and machinery insurance

Question 24

Examples of covered equipment

Answer 24

Equipment built to operate under internal pressure/vacuum
Electrical/mechanical equipment used to generate transmit or utilize energy
Communication/computer equipment

Question 25

If coverage for business income/extra expense is included, the coverage is extended to include _________

Answer 25

Utility interruption

Question 26

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

Answer 26

Joint underwriting association – liquor liability

Question 27

Purpose of surplus lines insurance is to locate coverage for specially hazardous exposures such as

Answer 27

Amusement parks Music or rock concerts Movie filming Auto/boat racing

Question 28

When coverage for surplus lines insurance is placed with an unauthorized company by a surplus lines broker

Answer 28

Exporting

Question 29

Two classifications of aviation insurance coverage

Answer 29

Direct loss and liability coverages

Question 30

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

Answer 30

Aircraft Hull insurance

Question 31

Covers of Bailey’s liability with respect to aircraft belonging to others what is stored for safekeeping or repair

Answer 31

Hangerkeepers liability

Question 32

Provides basic property insurance, against direct loss of property as defined in the standard fire policy and vandalism & malicious mischief

Answer 32

Joint underwriting and reinsurers association (fair) plan

Question 33

Aids in improving the property conditions in the V.I. and stabilize the property market in general

Answer 33

FAIR Plan

Question 34

For spoilage damage coverage to apply

Answer 34

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.

Question 35

Form completed each year which must reach insurer within 3 months of annual report date or coinsurance would apply

Answer 35

Annual Report of Values Form

Question 36

When insured's owned refrigerated covered property is covered against spoilage while stored on premises

Answer 36

Refrigeration Interruption Coverage