Worker's Comp Flashcards
What is the set coverage limit for Part One: Workers’ Compensation Coverage?
There is no limit.
Who is provided coverage for Part Two of a workers’ compensation policy (in non-monopolistic states)?
The employer
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?
Agent of Service Authorization Letter
True or False: Independent contractors are not included in an insured’s estimated payroll figures.
True
True or False: Remuneration is the largest component of payroll.
False
What is expected to be received from the insurance carrier after a Submission has been sent to them?
The quote
TRUE or FALSE: There are penalties for employers who do not secure a workers’ compensation insurance policy.
True
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.
False
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.
net
A currently valued loss run report means that the claims information has last been updated within days of the policy’s expiration.
90
A is filed with the insurance carrier if an employee experiences a work-related injury or illness.
claim
Who is the Proposal provided to?
Insured
What is the next step if the insured agrees with the Proposal?
Bind coverage with the insurance company
What are the two different versions for a waiver of subrogation?
Blanket & Scheduled
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.
True
Which of the following states are monopolistic?
Wyoming, Ohio, Washington, North Dakota
The four benefits a covered injured employee may receive for Part One: Workers’ Compensation Coverage is .
Medical expenses, disability income, rehab expenses and death benefits.
Which type of employer would be more likely to need a Stop Gap (Employers’ Liability) Endorsement in their workers’ compensation policy?
An employer in a monopolistic state
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?
Sole Proprietors, Partners, Officers, and Others Coverage Endorsement
Which of the documents are included in the Submission?
Estimated annual payroll reports, supplemental applications, currently valued loss run reports, completed ACORD Forms
When an insured estimates their payroll figures, which type of employee wage should be used in their calculations?
Straight time wages
Which experience modification rating shows that the insured’s losses are worse than average?
1.20
An exclusion is an endorsement which…
removes coverage to a policy
Which type of endorsement allows the employer to extend workers’ compensation coverage to employees ineligible for coverage?
Voluntary Compensation Endorsement
Which type of final audit does not require an auditor to visit the insured’s business location(s)?
Voluntary
Which type of final audit does not require an auditor to visit the insured’s business location(s)?
Voluntary
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.
False
Which fee is applied if an insured cancels their insurance policy prior to the expiration date?
Short-rate Cancellation Penalty
Who is the Proposal provided to?
Insured
