ACSR 9 – Workers Compensation and Employers Liability Insurance Practice Test

These questions are part of the practice quiz. Start practicing

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