ACSR 9 – Workers Compensation and Employers Liability Insurance Practice Test

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• Temporary Partial Disability is defined as?
• Nonprofit, unincorporated associations established in all states to pay the outstanding claims of insolvent primary insurers.
• Which endorsement would you select to cover longshore and harbor workers under federal law?
• ____ exist under Part Two for any claim that is covered under Part One, any claim covered under federal law, liability assumed under a contract, punitive damages, and damages arising out of employment practices.
• State funds that are the only source of workers compensation insurance for employers in that state are called:
• An experience modification factor above 1.00 indicates what about loss experience?
• Which endorsement is named after a federal shipping act and applies to seamen?
• Which benefit category is designed to support an employee's recovery and return-to-work efforts?
• Which one of the following WC&EL endorsements can be used to add coverage for employees excluded from coverage under a state's laws?
• In a typical policy structure, how are the limits of liability for Employers Liability and Workers' Compensation set?
• In most states, an ____ can meet its financial obligations by purchasing workers compensation insurance from any private insurer that is licensed to write workers compensation coverage in that state.
• Under Part Two, a liability arising from a product manufactured by the employer is described as
• Which Part explains that premium is determined using classification codes contained in the insurer's manuals, with the Scopes Manual being commonly used for class codes?
• If there is a conflict between the workers compensation policy and the applicable state law, the policy will
• Part Two provides coverage for these types of liability when an employee sues a third party such as a machine manufacturer, and the third party can then sue the insured.
• Which statement correctly describes an endorsement for contractor coverage?
• What is the purpose of a premium audit?
• What is a state fund that sells workers compensation insurance in competition with private insurers?
• Which Part of the WC&EL policy requires the insured to tell us at once if injury occurs that may be covered by this policy?
• Part Two addresses exclusive remedy exceptions. Which item is NOT typically addressed by Part Two?
• Which statement best describes how exemptions from the workers compensation requirement vary?
• How do employers benefit by paying workers' compensation benefits?
• In an assigned risk plan, insurance rates are usually slightly higher than voluntary market rates for comparable classifications.
• In most states, workers compensation insurance is required for a majority of organizations.
• Endorsements can modify a WC&EL policy to provide coverage for what?
• The WC&EL policy addresses two types of loss exposures. Part ____ covers the special circumstances under which an employee or a family member may sue the insurer in connection with a work-related injury or illness.
• The list of states where WC&EL coverage is provided and automatic extensions for other states is found in which section of the policy?
• How does an Employers Liability (EL) policy typically treat punitive damages exposure?
• Which endorsement would Millwright Shipping Co. want to add to cover injuries on Erie Canal or NYC harbor?
• An independent contractor coverage nuance: An independent contractor is not eligible for an organization's workers' compensation insurance unless he/she is in the same business.
• Which endorsement would apply to workers on navigable waterways for compensation?
• What is the effect of the Experience Modification Factor (EMF) on premium?
• What does 'arising out of and in the course of employment' mean, and why is it critical to WC coverage?
• Which organization develops the standard WC&EL policy form in most states?
• What are death benefits under WC?
• What is Permanent Partial Disability?
• Ohio is the state mentioned as not permitting private insurers to provide workers' compensation coverage. Which state does not permit private insurers to provide coverage?
• Are volunteers included under a standard workers' compensation policy by default?
• Are injuries sustained while commuting to or from work typically covered by WC?
• Part One provides coverage for which of the following related to a compensable work-related injury?
• Which disability type describes permanent impairment with possible alternate employment?
• Liability for damages that the spouse of an injured or deceased person sustains, also known as loss of consortium, is categorized in Part Two as:
• Part One also states that if the insurer becomes legally obligated under a state's law to provide extra benefits because of an insured's failure or misconduct, the insurer has a right to recover those extra benefits from the insured. Which option describes this?
• Will a workers' compensation policy cover injuries caused by a co-worker?
• Which statement describes employers' liability in relation to WC?
• Which endorsement would be most appropriate for seamen in maritime contexts to receive coverage?
• Liability for damages to family members as a result of the employee's occupational injury or disease, such as illness spreading to family members, would Part Two provide coverage for which category?
• All organizations that have employees have liability exposures related to injuries to those employees. This type of liability is (included/excluded) from commercial general liability insurance policies.
• The Scopes Manual is especially used to determine which of the following?
• Defense costs and related supplementary payments are paid in addition to the limits of liability.
• Which statement about coordinating WC/EL with other lines is most accurate?
• In most states, workers' compensation insurance is required for employers who employ more than:
• A Waiver of Subrogation is typically used to protect relationships with whom?
• Which statement about the exclusive remedy is correct?
• Part Two includes coverage for liabilities when the employer is sued as manufacturer for a product defect.
• A(n) ____ that fails to demonstrate financial security in compliance with workers compensation laws is subject to fines, civil penalties, prohibition to conduct business, and employee lawsuits without recourse to common-law defenses.
• To qualify as a ____, an employer must post a surety bond or other collateral with the workers compensation administrative agency of the state to guarantee the security of benefit payments.
• The purpose of workers compensation laws is to provide prompt medical and wage replacement benefits to employees injured on the job to avoid financial hardship and to assist employees in returning to work.
• What does an 'other insurance' clause do in a WC policy?
• Which exposure is most commonly addressed by adding endorsements to an Employers Liability policy?
• What are the two main parts of a standard workers' compensation policy, and what does each cover?
• Who is typically responsible for ensuring coverage under workers' compensation when a business is not self-insured?
• Which part of the policy provides coverage for the employer's legal obligations under employers liability?
• When a party asks for a certificate, what does it specifically prove?
• What is the standard form used for providing coverage under the workers compensation statutes of most states?
• Which endorsement to the WC&EL policy provides coverage for injured crew members of a vessel?
• How are medical benefits described in WC?
• Which statement about death benefits is true?
• If a conflict exists between the WC&EL policy terms and workers' compensation laws, what does the policy do?
• Which statement about EMF is true?
• If the policy and the applicable workers' compensation law conflict, the policy will conform to the law. Which statement is true?
• Which statement about interaction with general liability is true?
• Many states have created ____ to make workers compensation insurance available to employers that cannot obtain this insurance in the voluntary market, usually because of poor loss experience.
• Which endorsement would be considered the standard for longshore and harbor workers?
• Which statement about contractor coverage endorsements is correct?
• Which policy page typically lists the insured's address and policy period?
• Which one of the following is true regarding self-insured workers compensation plans?
• Which WC&EL endorsement provides coverage for railroad workers?
• Under what circumstance might independent contractors not be covered under a WC policy without endorsement?
• _____, required by law in almost all states, include those for medical treatment, wage replacement, rehabilitation, and death.
• A client reports an employee may have injured his back during vacation but without on-the-job injury. What should be done regarding reporting?
• Which component allows the insurer to recover costs from a negligent third party after a covered loss?
• Jones & Company wants to purchase workers' compensation coverage for employees in another state; which endorsement ensures all employees are protected?
• Part ____ of the WC&EL policy addresses special circumstances allowing an employee or a family member to sue the employer.
• What distinguishes defense costs from indemnity payments in Employers Liability?
• What is the purpose of Part Two within the WC&EL policy?
• Which market covers employers who obtain insurance through private, voluntary insurers without being assigned to a plan?
• ____ insurance covers an employer against its common-law liability for occupational injury to employees. The insurer also agrees to defend the insured against claims or suits seeking covered damages.
• In workers' compensation, subrogation rights are exercised by whom after the insurer pays benefits?
• Which factor is used to determine the rate for WC&EL policies?
• In an assigned risk plan, the total business assigned to each licensed insurer is proportional to what?
• An experience modification factor below 1.00 indicates what about the loss experience?
• The WC&EL policy addresses two types of loss exposures related to employees. Part ____ provides state-mandated benefits following an injury or illness.
• Policy territory defines what in workers' compensation?
• In some states employers have an option to purchase workers compensation insurance from a state ____ or the voluntary market. In these states the state fund usually replaces assigned risk plans for employers who cannot obtain insurance in the voluntary market.
• A group of employers in the same industry that jointly (as a whole) and severally (individually) guarantee payment of workers compensation benefits to the employees of the group's members. A not-for-profit association or corporation is typically formed to which they pay premiums for self-insurance purposes.
• In some states, an employer engaged in construction who has one employee is required to have workers compensation insurance. This illustrates that exemptions vary by state and industry.
• Within self-insured groups, which service is commonly retained to administer benefits for members?
• Which term best describes the catch-all category of exclusions in Part Two?
• Which endorsement adds coverage for employees excluded from coverage under a particular state's laws?
• Which statement best describes the role of a certificate in contract contexts?
• What is the role of deductibles in WC/EL policies?
• Part Five of a WC&EL policy grants the insurer the right to which action?
• What describes the coverage territory of a WC&EL policy?
• In the WC&EL Experience Modification, what does a modifier above 1.00 indicate about loss experience?
• Part One provides coverage for the insured's obligation to pay all compensation and other benefits required by workers' compensation law of any state listed on the information page. Which Part does this describe?
• How do endorsements for domestic employees impact WC coverage?
• Many states have authorized the formation of ____ to assist employers in their search for more economical ways to insure their workers compensation obligations. Most of these groups retain a TPA to administer benefits, although occasionally one of the employers in the group will provide these services for all of the members.
• ____ coverage occurs when an employer is sued by an employee for negligence in some capacity other than as an employer, such as being sued in the capacity of a manufacturer.
• Which endorsement would typically be needed to cover liability arising from a company’s negligence under federal law?
• In an assigned risk plan, how is the amount of business assigned to each insurer determined?
• Which statement best captures the relationship between WC/EL and other lines?
• American Manufacturing Company cannot afford to self-insure its workers compensation insurance. This is an example of
• Are funeral expense benefits universal?
• Which statement describes enforcement actions for failing to demonstrate financial security under workers' compensation laws?
• What is the effect of a classification code on premium?
• An employer can demonstrate financial security in compliance with workers compensation laws by obtaining insurance from an assigned risk plan in which
• Excess insurance is purchased to guarantee payment above the self-insured threshold.
• In Part Two, defense costs and related supplementary payments are covered in addition to the limits of liability.
• Which endorsement provides voluntary compensation and employers liability coverage?
• Permanent Partial Disability is a lasting impairment that reduces earning capacity but does not render the employee totally unable to work.
• In a few states, a ____ fund provides the only workers compensation insurance available in that state. Employers who are required to have insurance to meet their financial obligations or wish to do so must purchase insurance from the state fund.
• A certificate of workers' compensation is often required in which situation?
• Part One includes a defense obligation by the insurer. Which statement best describes this defense?
• What is the purpose of a voluntary compensation endorsement?
• Before workers' compensation statutes, which issue existed?
• What is subrogation in workers' compensation?
• How do limits differ between Employers Liability and Workers' Compensation?
• Distinction between independent contractor and employee is generally based on what factor?
• Because of poor safety loss experience, the American Manufacturing Company is unable to obtain workers compensation insurance in the voluntary market. So, American files an application with the state government to obtain coverage and are allocated to a licensed insurer offering coverage at a higher premium. This is an example of
• Common exclusions in the Employers Liability portion?
• In Employers Liability endorsements, what is the difference between contractual liability and tort liability?
• Which endorsement specifically extends coverage to workers provided by a staffing firm?
• In the scenario of a railroad employee who is awarded damages, which endorsement would the employer need to be covered for liability loss?
• Which exclusion is common to Parts I and II of the WC&EL policy?
• Which endorsement is associated with seamen seeking protection under federal law?
• Prior to the development of workers compensation statutes, how did employees receive medical payments and compensation for workplace injuries?
• What term is used for the groups formed by employers to help find economical ways to insure WC obligations, typically retaining a TPA?
• Which employee class may be excluded by law in some states?
• What is a consequence of not coordinating WC with other lines?
• When a claim is reported, what is the insured's responsibility regarding investigation?
• Most organizations designate a financial threshold for which they will cover losses themselves, and in order to guarantee payment over this threshold, they might purchase
• If a contractor asks for a certificate, what should you provide?
• Which type of insurance provides coverage for an organization's liability for the occupational injury or illness of its employees?
• In some states, employers may obtain workers' compensation through what type of fund described as competitive?
• If a contractor's workers are truly independent contractors, what is typically required to ensure WC coverage?
• Which endorsement would apply to maritime workers who are not seamen but work near navigable waters?
• Some employers might prove financial security in compliance with workers compensation laws through a monopolistic state fund, which
• Which endorsement would you choose if you need coverage for seamen with rights to sue their employer for maritime injuries?
• What is the purpose of a certificate of workers' compensation?
• Which endorsement to WC&EL policy applies to employees of interstate railroads and intrastate railroads that connect to interstate railroads?
• Part ____ of the WC&EL policy is structured like a traditional liability policy with an insuring agreement to pay damages on the insured's behalf.
• Which endorsement is designed to provide voluntary compensation and employers liability?
• Which endorsement is used to extend coverage for maritime workers on docks and ships?
• Employers who purchase workers compensation insurance from a private insurer are obtaining insurance from
• What does the exclusive remedy concept in workers' compensation mean?
• How do WC and EL interact with other lines of coverage?
• Which statement best describes the difference between short-term and long-term disability in workers' compensation terms?
• What is the effect of a leased workers endorsement?
• Self-insured groups are usually covered by state guaranty funds.
• Which workers are typically considered employees for workers' compensation purposes, and which types may be excluded without endorsement?
• In a no-fault system, which statement is true?
• Which endorsement is specifically designed to cover longshore workers under federal law?
• If an additional state is listed as a potential state of operations, the policy will cover the insured's obligations under that state's workers' compensation law as if the state were listed as current. This statement is true; what is the correct implication?
• Which statement best describes the purpose of combining insurance with risk control for loss exposures?
• Which statement best describes how coverage follows the employment relationship for co-employees under WC?
• Part Five states that which item, shown on the information page, is determined by multiplying a rate times the premium basis?
• What is Temporary Partial Disability?
• How might return-to-work programs affect WC benefits?
• A premium audit after the policy period primarily determines what?
• What is true about certificates and contracts?
• How does workers' compensation treat an employee who is considered an independent contractor?
• Which endorsement would cover injuries of employees under federal law for a railroad company?
• If a full-time employee is only able to work part-time as a result of a compensable workers compensation injury, that employee should receive:
• The ____ factor is based on the insured's incurred losses for the three years prior to the policy year.
• Which statement best describes the relationship between workers' compensation and other lines of coverage?
• Under standard WC coverage, which statement about intra-employee liability is true?
• Which statement best describes how endorsements to an Employers Liability policy may modify coverage?
• Regarding persons and employments covered under workers compensation insurance,
• What is the purpose of the First Aid provision in workers' compensation policies?
• Voluntary market refers to coverage offered by private insurers.
• In Employers Liability, what is the insurer's duty to defend?
• Are there exceptions to WC coverage for injuries caused by a co-worker, such as willful misconduct or off-duty acts?
• Under EL, punitive damages exposure is covered when?
• Which endorsement covers both workers' compensation and employer's liability together as a package?
• In general, what does a certificate say about coverage?
• Which Part explains that coverage extends to additional states of operations listed on the information page when they begin operations there?
• Which statement best describes a certificate's use with contracts?
• What term describes the qualification of a benefit for payment under workers compensation statutes?
• In most states, a majority of employers who employ more than ____ employees are required to have workers compensation insurance.
• Which endorsement is commonly used by businesses engaged in maritime work on or near navigable waterways?
• Which disability category is used for a worker who cannot work at all due to a work-related injury and is not expected to recover?
• Which endorsement adds coverage for employees who are excluded from coverage under a particular state's laws?
• How is bodily injury defined in the context of Employers Liability?
• What is Temporary Total Disability?
• What is Permanent Total Disability?
• Which one of the following types of wage replacement benefits is paid to injured employees who sustain a permanent loss of function and may be unable to return to their usual occupation?
• A facility, owned and operated by a state government, that provides workers compensation insurance and that does not permit any other insurers to sell workers compensation insurance in that state.
• The development of workers compensation statutes made it easier for employees by:
• How is occupational disease typically treated in workers' compensation?
• Why do many employers elect to purchase workers compensation insurance even if not required?
• Part One of a standard WC policy provides which coverage?
• Which benefits are included under workers' compensation indemnity?
• Self-insured groups are usually NOT covered by state guaranty funds.
• What is used as the premium base for WC&EL policies?
• Funeral expenses under WC policy
• Which statement is true about the implicit exclusion for federal benefits within the WC&EL policy?
• Which endorsement covers seamen on ships for rights to sue their employers, similar to FELA?
• Which statement best describes the insured's duty to notify the insurer under the WC&EL policy conditions?
• The Scopes Manual, used to determine class codes in WC&EL, is published by which organization?
• In addition to the typical policy provisions, Part ____ also describes the insurer's right to conduct inspections of the insured's workplaces.
• Most states, including those with monopolistic state funds, allow employers to self-insure their workers compensation losses if they demonstrate
• For injuries to an interstate railroad employee who sues for liability, which endorsement is required?
• A monopolistic state fund provides the only workers compensation insurance available in a given state.
• What term describes private insurers that insure only those applicants they willingly accept in accordance with underwriting guidelines?
• In a WC&EL policy, which claim arises when an injured employee sues the employer for additional damages because the employer manufactured the faulty equipment?
• What is the main purpose of workers' compensation laws?
• What is the purpose of listing states on the information page of the WC&EL policy?
• Part Two of the WC&EL policy addresses which concept?
• What endorsement would be used to cover employees with rights under the Federal Employers Liability Act?
• Part Two—Employers Liability Insurance covers manufacturers' claims against the insured known as which type?
• Which statement is true regarding self-insured groups?
• Which statement about premium audits is true?