CDMS Workers' Compensation and Claims Management

Question 1

Under the US workers' compensation system, which party is primarily responsible for paying medical benefits to an injured employee?

Accepted Answer

The employer or its insurer

Answer

The employee's health insurance carrier

Answer

The federal government through SSDI

Answer

The state's general fund

Question 2

Which of the following best describes a 'temporary total disability' (TTD) in workers' compensation?

Accepted Answer

The worker is completely unable to work but is expected to recover

Answer

The worker has a permanent impairment but can work part-time

Answer

The worker has reached maximum medical improvement with residual limitations

Answer

The worker can perform modified duty immediately after injury

Question 3

What does 'maximum medical improvement' (MMI) mean in disability management?

Accepted Answer

The claimant's condition has stabilized and further recovery is unlikely

Answer

The claimant has received all available treatments

Answer

The claimant has recovered completely and can return to full duty

Answer

The claimant qualifies for permanent total disability benefits

Question 4

Which federal law established the framework for state workers' compensation programs in the United States?

Accepted Answer

The Workers' Compensation Act of 1908 (Federal Employees)

Answer

The Social Security Act of 1935

Answer

The Occupational Safety and Health Act of 1970

Answer

The Americans with Disabilities Act of 1990

Question 5

In workers' compensation, what is a 'second injury fund' designed to do?

Accepted Answer

Encourage employers to hire workers with pre-existing disabilities by limiting their liability

Answer

Pay benefits to workers injured a second time on the same job

Answer

Provide supplemental income to permanently disabled workers

Answer

Fund rehabilitation programs for injured workers

Question 6

Which type of workers' compensation benefit replaces a portion of the injured worker's lost wages?

Accepted Answer

Indemnity (wage replacement) benefit

Answer

Medical indemnity benefit

Answer

Vocational rehabilitation benefit

Answer

Permanent partial disability lump sum