Worker's Compensation Policy (CH 9) Flashcards
Monopolistic State
States that so not allow the employer to buy private Workers’ Compensation insurance: North Dakota, Ohio, Washington, and Wyoming. These states created their own state funds to pay for worker injury.
Stop-Gap Insurance
Employer’s liability protection that can be sold as an endorsement to a Commercial General Liabilty (CGL) policy and also the Businessowners policy (BOP) for small businesses.
Workers’ Compensation: Insurance
A policy purchased by an employer to indemnify his obligation to pay out-of-pocket worker injury.
Medical Benefits
covered under part 1 on an unlimited basis, with no dollar or time limit on covered expenses.
Disability benefits
begin after a two-week elimination period. Benefits of total disability are usually 66 2/3% of wages, subject to minimum and maximum limits.
Dismemberment benefits
provided on a lump sum basis for loss of limbs or eyesight.
Death benefit
$5,000 is paid out as burial allowance. Income benefits are provided for a surviving spouse and children.
Survivor benefits
provided to the spouse and minor children up to 66 2/3% wages until the minor children are 18 or later if a full time student and the spouse until they remarry.
Covered accident
virtually any accident sustained on company time, regardless of fault.
Voluntary Compensation Endorsement
provides coverage to workers or volunteers who are exempt from statutory workers compensations benefits.
Foreign Coverage Endorsement
adds foreign voluntary compensation insurance for employees hired within the USA while they are traveling or temporarily residing outside the United States of America, its territories or possessions or Canada for a period no longer than 90 days.
