Workers' Compensation Insurance Flashcards
7 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Workers' Compensation Insurance flashcards as text
What is the primary purpose of workers' compensation insurance?
Answer: To provide benefits to employees injured on the job regardless of fault
Workers' compensation is a no-fault system that provides benefits to employees for work-related injuries or illnesses without requiring proof of employer negligence.
Workers' compensation insurance is primarily governed by:
Answer: Individual state laws and statutes
Workers' compensation is governed primarily by individual state laws, which is why benefits, waiting periods, and requirements vary from state to state.
Which of the following injuries is generally EXCLUDED from workers' compensation coverage?
Answer: An employee injured while intentionally violating known safety rules
Willful misconduct or intentional violation of safety rules is a standard exclusion under workers' compensation, as coverage is meant for accidental work injuries, not deliberate misconduct.
The 'exclusive remedy' doctrine in workers' compensation means:
Answer: Employees cannot sue their employer in civil court for work-related injuries
The exclusive remedy doctrine bars employees from suing their employer in tort for work-related injuries; workers' compensation benefits are their only legal recourse against the employer.
Workers' compensation premium rates are primarily based on:
Answer: Job classification codes and the employer's past claims experience
Premiums are calculated using classification codes that reflect the inherent risk of the work performed, combined with the employer's past loss experience through the experience modification rate (EMR).
Which of the following is NOT one of the four main categories of workers' compensation benefits?
Answer: Life insurance benefits
The four main workers' compensation benefit types are medical, disability income, rehabilitation, and death benefits; life insurance is a separate product and not a workers' comp benefit.
The Experience Modification Rate (EMR) in workers' compensation:
Answer: Compares an employer's actual losses to expected losses for similar businesses
The EMR measures an employer's actual loss experience against the statistically expected losses for similarly classified businesses, resulting in a premium credit (below 1.0) or debit (above 1.0).