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
Which of the following injuries would typically be covered under workers' compensation?
Answer: A delivery driver injured in a traffic accident while making work deliveries
A delivery driver injured while making deliveries is performing a work duty, so the injury arises out of and in the course of employment, which is the legal standard for coverage.
What is an 'occupational disease' in the context of workers' compensation?
Answer: A disease caused or significantly aggravated by the conditions of employment
An occupational disease is one that is directly caused by or materially contributed to by the nature of the work environment or job duties, such as asbestosis from asbestos exposure.
The typical waiting period before temporary disability workers' compensation benefits begin is:
Answer: 3 to 7 days
Most states impose a waiting period of 3 to 7 days before wage replacement (temporary disability) benefits begin, though many states provide retroactive payment if the disability extends beyond a specified period.
The 'voluntary compensation' endorsement in a workers' compensation policy:
Answer: Extends coverage to workers not legally required to be covered, such as some farm workers
The voluntary compensation endorsement extends workers' compensation benefits to categories of workers who may be excluded from mandatory coverage under state law, such as agricultural workers or domestic servants.
In workers' compensation, 'permanent partial disability' (PPD) refers to:
Answer: A permanent impairment that partially reduces the worker's earning capacity
Permanent partial disability means the worker has sustained a lasting impairment that limits but does not completely eliminate their ability to work, distinguishing it from permanent total disability.
Employers Liability insurance (Part Two of the standard workers' compensation policy) protects employers against:
Answer: Third-party lawsuits arising from employee work injuries
Part Two (Employers Liability) covers the employer when an injured employee's family member or another party brings a civil lawsuit related to a work injury, which falls outside the exclusive remedy of workers' compensation.
What is the primary purpose of a 'second injury fund' in workers' compensation?
Answer: To encourage employers to hire workers with pre-existing disabilities by limiting their liability for combined injuries
Second injury funds were created to remove the disincentive of hiring workers with pre-existing conditions by absorbing the excess liability caused by the combined effect of a prior disability and a new work injury.