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
Workers' compensation coverage for employees working temporarily in states beyond those listed on the policy is typically provided by:
Answer: An 'other states' endorsement added to the workers' compensation policy
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.
Independent contractors are generally:
Answer: Not covered under the hiring company's workers' compensation policy
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.
A 'monopolistic state fund' in workers' compensation means:
Answer: A state-operated fund that is the only legal provider of workers' compensation in that state
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.
The NCCI (National Council on Compensation Insurance) is primarily responsible for:
Answer: Developing and filing workers' compensation rates, classification codes, and policy forms in most states
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.
Under workers' compensation, death benefits typically include:
Answer: Burial expenses and ongoing income benefits paid to qualifying surviving dependents
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.
A 'retrospective rating plan' in workers' compensation:
Answer: Adjusts the final premium at year-end based on the employer's actual losses during the policy period
A retrospective rating plan sets a provisional premium at policy inception and then adjusts it up or down after the policy period based on the employer's actual loss experience, incentivizing workplace safety.
'Temporary total disability' (TTD) in workers' compensation is best described as:
Answer: A condition during which the injured worker is completely unable to work but is expected to eventually recover
TTD applies when an injured worker is totally unable to perform any work duties during the healing period, but the condition is expected to improve so the worker can eventually return to work.