Unit Twenty Workers’ Compensation

Question 1

What does Workers’ Compensation laws give employees the right to? 

Answer 1

The right to collect for injury, disability, or death that occurs in the course of employment 

Question 2

What is assumption of risk and is the employer at fault

Answer 2

Employee knew the job risks and employer knocked at fault 

Question 3

What is contributory negligence and is the employer at fault

Answer 3

If employee partly at fault, they are considered to be totally at fault and cannot collect from the party being sued. The employer is not at fault 

Question 4

What is the fellow servant rule and is the employer at fault? 

Answer 4

Injury caused by another employee, and the employer is not at fault 

Question 5

Worker’s Compensation laws today are no fault laws
true or false?

Answer 5

True

Question 6

Employer agrees to pay regardless of fault, true or false 

Answer 6

True

Question 7

What is exclusive remedy?

Answer 7

The benefits stated in the Worker’s Compensation laws are the only benefits. The employee cannot sue employers in court to obtain additional benefits. 

Question 8

What are the five workers compensation benefits?

Answer 8

Medical
Disability
Survivor
Burial
Rehabilitation 

Question 9

What are the three factors used to determine if the injury arose in the course of employment?

Answer 9

Time (must have occurred during work hours while fulfilling the purposes of employment)

Place & Circumstances (the injury must either occur at the place of employment or occur away from the place of employment. Well duties are being fulfilled)

Question 10

If a coal minor develops a disease called the black lung and this occurs during his time of employment. Would it be covered?

Answer 10

Yes, because the disease was caused by a specific type of employment in the employee would be entitled to compensation 

Question 11

State Workers’ Compensation laws are either?

Answer 11

Compulsory or Elective 

Question 12

In most states the laws compulsory meaning what?

Answer 12

The employer must accept and comply with all provisions of the law 

Question 13

If the state law is elective, what does that mean? 

Answer 13

The employer may choose not to be subject to the law 

Question 14

If the state law is elective, and the employer chooses not to provide Workers’ Compensation what will they be unable to utilize?

Answer 14

The employer would not be able to use the common defenses (assumption of risk, contributory, negligence, fellow servant, rule) as these are no longer valid defenses for work related injury claims 

Question 15

If the state law is elective, and the employer chooses not to provide workers compensation, could the injured employee take the employer to court? 

Answer 15

Yes, and if the injured employee can prove fault by the employer, it is now up to the courts to award benefits to the employee

Question 16

What are the five funding of benefits? 

Answer 16

Private workers compensation insurance policy
Monopolistic
Competitive
Self Insurance
Group Insurance

Question 17

What is monopolistic? 

Answer 17

Insurance bought from the state 

Question 18

What is competitive?

Answer 18

Insurance bought privately or from the state

Question 19

What is self-insurance? 

Answer 19

Employer has savings to pay claims

Question 20

What is group insurance?

Answer 20

Members of the same group/business

Question 21

What is part one - Workers’ Compensation insurance? 

Answer 21

Pays the Workers’Compensation benefits of the state law
No dollar limit, unless in the law 

Question 22

What is part two-employers liability?

Answer 22

Pays when the employer is sued outside of the Worker’s Compensation law
-policy limit per accident
-Policy limit for all bodily injury claims by disease
-policy per employee for bodily injury by disease
Does not pay Worker’s Compensation benefits

Question 23

What is part three-other states?

Answer 23

Pays the Worker’s Compensation benefits of the state listed 

Question 24

What is part four-your duties if injury occurs?

Answer 24

The insured’s obligations 

Question 25

What is part five-premium

Answer 25

Explains how the cost of the policy is determined 

Question 26

Part six-conditions

Answer 26

Subrogation
Inspection
Cancellation 

Question 27

With part one-worker’s Compensation benefits, being established by the law are there any exclusions? 

Answer 27

There are a few 

Question 28

What exclusions apply to part two-employers liability

Answer 28

• liability assumed under the
• punitive damages awarded because they worker was employed in violation of the law
• injury to a worker well employed in violation of law with the insured knowledge
• obligations imposed by any workers compensation, occupational disease, unemployment, compensation, or disability benefits
• injury, intentionally caused or aggravated by the insured
• injury that occurs outside the United States territories or possessions or(does not apply to residence of these areas temporary outside of these areas)
• damages arising out of violations of employment practices laws, such as discrimination or harassment
• injury that is covered under a federal Worker’s Compensation law
• injury to the master member of the crew of any vessel
• Fines and penalties imposed for violations of federal or state law 

Question 29

What do endorsements provide?

Answer 29

Coverage for certain types of benefits or certain classes of employees 

Question 30

What do endorsements provide?

Answer 30

Coverage for certain types of benefits or certain classes of employees 

Question 31

What are some types of workers that are not covered under a state workers compensation law?

Answer 31

Domestic employees and farm workers 

Question 32

How would an employer provide coverage for an excluded/exempt worker 

Answer 32

By adding the voluntary compensation endorsement to the policy 

Question 33

How is Worker’s Compensation coverage rated 

Answer 33

On the basis of the employers payroll and job classification 

Question 34

With a premium computation, how is the premium discount determined 

Answer 34

Rate per $100 of annual payroll per class 

Question 35

When is a deposit premium due?

Answer 35

At the beginning of the policy Based on the estimated payroll. 

Question 36

When will a payroll audit be conducted and why?

Answer 36

At the end of the policy. To determine the final premium for the policy. 

Question 37

What does the long shore and Harbor Worker’s Compensation act of 1927 provide 

Answer 37

It is a federal Worker’s Compensation act that provides compensation for lost wages, medical benefits, and rehabilitation services to longshore,harbor and other marine workers who are injured during their employment 

Question 38

What is Federal Employers Liability Act(FELA)?

Answer 38

• Compensation for Railroad workers
• Awards are often more substantial than state workers compensation laws 

Question 39

What is the Jones act?

Answer 39

Worker’s Compensation for ship’s crew