Worker's Comp

Question 1

What is the set coverage limit for Part One: Workers’ Compensation Coverage?

Answer 1

There is no limit.

Question 2

Who is provided coverage for Part Two of a workers’ compensation policy (in non-monopolistic states)?

Answer 2

The employer

Question 3

In order for loss run reports to be released to an insured’s current agent of record, what must be sent to an insurance carrier?

Answer 3

Agent of Service Authorization Letter

Question 4

True or False: Independent contractors are not included in an insured’s estimated payroll figures.

Answer 4

True

Question 5

True or False: Remuneration is the largest component of payroll.

Answer 5

False

Question 6

What is expected to be received from the insurance carrier after a Submission has been sent to them?

Answer 6

The quote

Question 7

TRUE or FALSE: There are penalties for employers who do not secure a workers’ compensation insurance policy.

Answer 7

True

Question 8

TRUE or FALSE: In a compulsory state which includes an exclusive remedy provision in their statutes, injured employees can file a tort liability claim against their employer for damages.

Answer 8

False

Question 9

The rate allows the insured to most accurately compare their policy quotes from different carriers, or from one year to the next, and determine if they are receiving a good deal on the policy.

Answer 9

net

Question 10

A currently valued loss run report means that the claims information has last been updated within days of the policy’s expiration.

Answer 10

90

Question 11

A is filed with the insurance carrier if an employee experiences a work-related injury or illness.

Answer 11

claim

Question 12

Who is the Proposal provided to?

Answer 12

Insured

Question 13

What is the next step if the insured agrees with the Proposal?

Answer 13

Bind coverage with the insurance company

Question 14

What are the two different versions for a waiver of subrogation?

Answer 14

Blanket & Scheduled

Question 15

True or False: The monthly payroll report is a document sent by the insurance carrier to the insured requesting the insured to calculate their monthly premium and provide payment upon submission.

Answer 15

True

Question 16

Which of the following states are monopolistic?

Answer 16

Wyoming, Ohio, Washington, North Dakota

Question 17

The four benefits a covered injured employee may receive for Part One: Workers’ Compensation Coverage is .

Answer 17

Medical expenses, disability income, rehab expenses and death benefits.

Question 18

Which type of employer would be more likely to need a Stop Gap (Employers’ Liability) Endorsement in their workers’ compensation policy?

Answer 18

An employer in a monopolistic state

Question 19

Sole proprietors, partners, limited liability members/managers and executive officers in a certain state are not required by law to be covered by workers’ compensation coverage. To elect for coverage, which endorsement must be added to the policy?

Answer 19

Sole Proprietors, Partners, Officers, and Others Coverage Endorsement

Question 20

Which of the documents are included in the Submission?

Answer 20

Estimated annual payroll reports, supplemental applications, currently valued loss run reports, completed ACORD Forms

Question 21

When an insured estimates their payroll figures, which type of employee wage should be used in their calculations?

Answer 21

Straight time wages

Question 22

Which experience modification rating shows that the insured’s losses are worse than average?

Answer 22

1.20

Question 23

An exclusion is an endorsement which…

Answer 23

removes coverage to a policy

Question 24

Which type of endorsement allows the employer to extend workers’ compensation coverage to employees ineligible for coverage?

Answer 24

Voluntary Compensation Endorsement

Question 25

Which type of final audit does not require an auditor to visit the insured’s business location(s)?

Answer 25

Voluntary

Question 26

Which type of final audit does not require an auditor to visit the insured’s business location(s)?

Answer 26

Voluntary

Question 27

TRUE or FALSE: Employers in New Jersey and Texas are required to accept the state’s workers’ compensation statutes and must purchase a workers’ compensation insurance policy.

Answer 27

False

Question 28

Which fee is applied if an insured cancels their insurance policy prior to the expiration date?

Answer 28

Short-rate Cancellation Penalty

Question 29

Who is the Proposal provided to?

Answer 29

Insured