P&C Workers' Compensation Insurance 3

Question 1

Workers' compensation coverage for employees working temporarily in states beyond those listed on the policy is typically provided by:

Accepted Answer

An 'other states' endorsement added to the workers' compensation policy

Answer

Federal multi-state workers' compensation legislation

Answer

A separate interstate commerce workers' compensation policy

Answer

Automatic reciprocity agreements filed between states

Question 2

Independent contractors are generally:

Accepted Answer

Not covered under the hiring company's workers' compensation policy

Answer

Required to be covered under the hiring company's workers' compensation policy

Answer

Covered only if they have fewer than five employees of their own

Answer

Always covered by a special federal independent contractor compensation program

Question 3

A 'monopolistic state fund' in workers' compensation means:

Accepted Answer

A state-operated fund that is the only legal provider of workers' compensation in that state

Answer

A private insurer that holds dominant market share within the state

Answer

A federal fund that monopolizes coverage for multi-state employers

Answer

A large employer group self-insurance fund with exclusive workers' compensation rights

Question 4

The NCCI (National Council on Compensation Insurance) is primarily responsible for:

Accepted Answer

Developing and filing workers' compensation rates, classification codes, and policy forms in most states

Answer

Regulating the specific benefit amounts paid to injured workers in each state

Answer

Administering the federal workers' compensation program for government employees

Answer

Operating second injury funds on behalf of member states

Question 5

Under workers' compensation, death benefits typically include:

Accepted Answer

Burial expenses and ongoing income benefits paid to qualifying surviving dependents

Answer

A lump-sum payment equal to ten years of the deceased worker's salary

Answer

Payment of all outstanding debts and liabilities of the deceased worker

Answer

A life insurance benefit equal to three times the worker's annual salary

Question 6

A 'retrospective rating plan' in workers' compensation:

Accepted Answer

Adjusts the final premium at year-end based on the employer's actual losses during the policy period

Answer

Allows employers to pay premiums calculated entirely on prior years' loss history

Answer

Retroactively eliminates claims that are discovered after the policy period expires

Answer

Allows insurers to retroactively re-rate employers who failed to disclose known hazards

Question 7

'Temporary total disability' (TTD) in workers' compensation is best described as:

Accepted Answer

A condition during which the injured worker is completely unable to work but is expected to eventually recover

Answer

A permanent condition that prevents the employee from performing any work whatsoever

Answer

A disability that temporarily reduces work capacity to 50% or less of normal output

Answer

An injury requiring temporary hospitalization but resulting in zero lost work time