Workers' Compensation- Done

Question 1

Workers compensation is a —– statutory program

Answer 1

State

Question 2

Before workers compensation laws were passed employees only recourse to collect damages from work related injury was…

Answer 2

To sue the employer

Question 3

Common law prior to workers compensation laws maintained that…

Answer 3

An employer was only responsible for injuries or death resulting from a negligent act by the employer

Question 4

Three common law defenses formerly used by employers

Answer 4

1. Assumption risk
2. Fellow servant rule
3. Contributory negligence

Question 5

Assumption risk

Answer 5

When an individual takes a job, they were assumed to have accepted any hazards associated with the job

Question 6

Fellow servant rule

Answer 6

Employers were not liable for injuries caused by fellow employees. Injured workers were required to seek damages from fellow employees that caused or contributed to their injury

Question 7

Contributory negligence

Answer 7

Employers were not held liable if an employees negligence contributed to the injury

Question 8

Significant milestones in workers compensation

Answer 8

1911- initial act
1940- expansion to include occupational illness and permanent disability
1960- expansion to cumulative trauma 
1973- mandatory rehabilitation act
1992- Americans with disabilities act

Question 9

Provisions under workers compensation

Answer 9

• no fault- limited liability
• payments are typically 1/2- 2/3 prior wage, non taxable
• National Council of Compensation Insurance (NCCI) is the licensed advisory organization

Question 10

Federal Workers Compensation Acts

Answer 10

1. The Federal Employees Compensation Act (FECA)
2. Longshoreman and Harbor Workers Compensation Act
3. Railroad Workers Act

Question 11

FECA

Answer 11

Applies to civilian employees if US government

Does not apply to military personnel

Question 12

State funds

Answer 12

Insurance companies owned and operated by the state

Question 13

Types of state funds

Answer 13

1. Monopolistic

2. Competitive

Question 14

Monopolistic state fund

Answer 14

The state is the only carrier authorized to write workers compensation insurance

Some state allow self insurance

Question 15

Competitive state funds

Answer 15

Compete for business along with private carriers and those who self-insure

Question 16

Purpose of employer self insurance

Answer 16

1. To reduce costs

2. Maximize cash flow

Question 17

Two basic coverages provided

Answer 17

1. Workers compensation

2. Employers liability

Question 18

Benefits under workers compensation

Answer 18

1. Income or cash benefits
2. Medical benefits
3. Vocational rehabilitation benefit
4. Death benefits

Question 19

Impairment

Answer 19

• determined by a physician on the basis if informed medical opinion, based on the results of physical examination and testing
• anatomical or functional abnormality that persists after appropriate therapy and having no reasonable prospect for improvement

Question 20

Disability

Answer 20

• legal term

- estimate of the extent or effect of impairment upon the life of a patient

Question 21

Other factors considered with disability

Answer 21

1. Age
2. Education
3. Economic and social environment
4. Energy requirements of an individual’s occupation

Question 22

AOE

Answer 22

Arising out of employment

Question 23

COE

Answer 23

In the course of employment

Question 24

Two conditions that must be met to make an accident, illness or injury compensable

Answer 24

1. It must arise out of employment (AOE)

2. It must occur in the course of employment (COE)

Question 25

Arising out of employment

Answer 25

Must be a causal relationship between the employment and the injury

Question 26

Course of employment

Answer 26

Time, place and circumstances of an injury must relate to the employment

Question 27

Workers compensation laws are designed to….

Answer 27

Protect employees and their families from economic losses due to personal injury caused by accidents and illnesses arising out of and in the course of employment