P&C Workers' Compensation Insurance 3

Question 1

Workers' compensation coverage for employees working temporarily in states beyond those listed on the policy is typically provided by:

Accepted Answer

An 'other states' endorsement added to the workers' compensation policy

Answer

The 'other states' endorsement extends coverage to additional states not listed in Item 3A of the policy declarations, protecting employees who travel or temporarily work outside the listed states.

Question 2

Independent contractors are generally:

Accepted Answer

Not covered under the hiring company's workers' compensation policy

Answer

Independent contractors are not considered employees, so they are generally not covered under the hiring company's workers' compensation policy; however, misclassification of employees as contractors is a common audit issue.

Question 3

A 'monopolistic state fund' in workers' compensation means:

Accepted Answer

A state-operated fund that is the only legal provider of workers' compensation in that state

Answer

In monopolistic states such as Ohio, Washington, Wyoming, and North Dakota, only the state-run fund may provide workers' compensation insurance; private insurers are prohibited from writing this coverage.

Question 4

The NCCI (National Council on Compensation Insurance) is primarily responsible for:

Accepted Answer

Developing and filing workers' compensation rates, classification codes, and policy forms in most states

Answer

The NCCI develops the loss cost filings, classification systems, experience rating plans, and standard policy forms that most states use to regulate and price workers' compensation insurance.

Question 5

Under workers' compensation, death benefits typically include:

Accepted Answer

Burial expenses and ongoing income benefits paid to qualifying surviving dependents

Answer

Workers' compensation death benefits generally consist of reasonable burial expenses and weekly income replacement benefits paid to surviving dependents such as a spouse and minor children.

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Practice Test

P&C Workers' Compensation Insurance 3