Section 3B

Question 0

Coverage is occupational in nature, meaning that it only covers

Answer 0

Job-related accidental injury and/or sickness

Question 1

Worker’s Compensation is the original

Answer 1

No-fault coverage

Question 2

Workers’ Compensation comes under the jurisdiction of two state agencies:

Answer 2

Industrial Commission (interpretation of WC statutes and eligibility determinations)

and Dept. of Insurance (jurisdiction)

Question 3

Purchasing coverage from a private insurer

Answer 3

Is the most common approach.

Question 4

In some states, coverage may be obtained from private insurers or through a

Answer 4

competitive state fund, which competes with private insurers.

Question 5

In a few states, coverage is available only through a

Answer 5

Monopolistic state fund and private insurers are not permitted

Question 6

Employers may comply with WC in one of three ways:

Answer 6

Authorized Private Insurer
State Compensation Fund
Self-Insurance Plan

Question 7

An employee has the option of

Answer 7

Accepting compensation as provided by law or rejecting it and retaining the right to sue the employer

Question 8

US Longshoremen’s and Harbor Workers’ Compensation Act

Answer 8

Those who load, unload, build, and repair ships are covered by this.

Question 9

Jones Act

Answer 9

Masters and members of the crew of ocean-going vessels are protected by a section of the Merchant Marine Act

Question 10

Railroad workers were covered by FELA (Federal Employers Liability Act)

Answer 10

Permits RR workers to sue the employer for negligence

Question 11

RR workers are exempt from

Answer 11

The Worker’s Compensation laws

Question 12

Situations where the worker is injured due to

Answer 12

The negligence of a third party- a person or entity which is neither the worker’s employer or co-employee

Question 13

The exclusive remedy provisions of WC law typically apply only when the

Answer 13

Employer carries WC insurance coverage as required by state law.

Question 14

Workers’ Compensation

Answer 14

Part 1(a) Workers’ Compensation

Part 2(b) Employers Liability

Part 3(c) Other States Liability

Question 15

Part 1(a) Workers’ Compensation

Answer 15

Statutory benefits
Applies to accidental, bodily injury, death or disease—insurer has Subrogation rights

Loss of Wages
Medical Expenses (without limit)
Disability Income(60-66 2/3%)
Vocational Rehabilitation
Death/Survivor

Question 16

Two types of death benefits: an amount paid to

Answer 16

Assist with funeral expenses and an amount paid to the survivors

Question 17

Most states have a second injury fund,

Answer 17

Which encourages an employer to hire an employee with previous injuries

Question 18

Part 2(b) Employers Liability

Punitive Damages

Answer 18

Are excluded

Question 19

Part 2(b) Employers Liability

A minimum policy limit of $100,000 per accident applies.

This policy will provide a legal defense

Answer 19

In addition to limits

Question 20

Supplementary payments , such as appeal bonds,

Answer 20

Are covered

Question 21

Part 3(c) Other States Coverage

If the insured wants coverage to apply to additional states where they might have a future exposure, they

Answer 21

May add optional other states coverage

Question 22

Rates of WC are based on the

Answer 22

Hazardousness of the Job,
Claims frequency, and
Payroll

Question 23

National Council of Compensation Insurers (NCCI)

Answer 23

Establishes experience modification rating factors (aka experience rating factors) which allow for adjustment of workers’ compensation premiums based upon an employer’s claims frequency.