Unit 2: Workers Compensation & Disability income insurance and Disability benefits programs

Question 1

What are the 2 kinds of statuses under workers compensation?

Answer 1

Federal and State

Question 2

4 reasons why workers compensation laws were developed

Answer 2

1. To ensure a prompt return to work of any injured or ill employee
2. To provide income to the injured or ill worker
3. To encourage maximum employer interest in safety
4. To provide the best available medical care necessary to ensure prompt return to work

Question 3

Who pays the workers compensation insurance premiums?

Answer 3

The employer

Question 4

Three methods used for funding workers compensation

Answer 4

Competitive state, territorial, private insurance

Question 5

A form of self-insurance that is owned by its policyholders and serves smaller or mid-size companies

Answer 5

Captive insurance

Question 6

When an employee with a preexisting condition is injured at work and the injury produces a disability greater than what would have been caused by the second injury alone, the benefits are drawn from what?

Answer 6

Subsequent-injury fund