Workers Compensation Insurance

Question 1

What are the 4 types of benefits provided by Workers Compensation insurance?

Answer 1

Medical payments
Disability income
Rehabilitation expenses
Death benefits

Question 2

What is the primary purpose of Workers Compensation insurance?

Answer 2

To pay benefits to employees for injuries arising out of employment.

Question 3

What is the purpose of employers liability insurance?

Answer 3

Employers liability insurance protects the insured from situations that are not covered under a state’s workers compensation law.

Question 4

What is the difference between a monopolistic state fund and a competitive market?

Answer 4

Monopolistic state fund: employers are required to purchase workers compensation insurance from a stat-operated entity.
Competitive market: workers compensation is purchased by employers from insurers authorized to write casualty insurance.

Question 5

What is a second injury fund?

Answer 5

A workers compensation program designed to pay for any additional benefits when an employee with a previous injury suffers a second injury.

Question 6

What does the term “exclusive remedy” mean?

Answer 6

Injured employees cannot seek damages outside workers compensation.

Question 7

What are the 2 main parts of workers compensation insurance.

Answer 7

Part I is worker’s compensation

Part II is employers liability