Exam 7: Workers Compensation Insurance

There are three possible options for a company to comply with workers' compensation law and obtain coverage for its employees.One option is to enroll in a state-based program and another option is to become a self-insurer.What is the third option?

A company with sufficient revenue may decide to forego both the state-based insurance fund and private workers' compensation insurance in favor on this arrangement:

What is a "choice of law" provision as it is explained in this case?

The process of evaluating the risks involved with issuing an insurance policy is called subrogation.

What is underwriting?

The insured's payment to the insurance company:_______________ .

Which party did the chancery court agree with? What reason did that court give for its decision?

Can an insurance company draft its exclusions in such a way that it prevents most employees from being covered?

What rule of construction is followed in interpreting the language of an insurance policy that is considered to be ambiguous?

Employers are required by state law to provide workers'compensation insurance coverage to their employees.

Some states provide state-based workers' compensation insurance programs.

What type of notice are employers in your state required to post concerning workers' compensation coverage? Do they resemble the notices offered in this chapter from New Jersey or Massachusetts?

An insurance policy is a contract.

According to Szarek, which state's laws should be followed in paying out the workers' compensation claim in this case?

What are limited policies?

The text discusses three possible methods for an employer to obtain workers' compensation insurance coverage.List and explain each.

Explain how insurance rates are set.

What are policy exclusions?

Locate your state's statutes regarding the obligation of employers to provide workers' compensation insurance coverage.What options are available for employers in your state?

Each state has a statute that provides sanctions and time for companies that fail to obtain valid workers' compensation insurance coverage.