Exam 12: Workers Compensation and Alternative Risk Financing

Match the descriptions with their terms: -The _________________ is the means by which the ratings adjustment takes into consideration the actual loss experience of the firm.

Match the descriptions with their terms: -A/An _________________ is one that is incorporated outside the United States.

A typical payment period of workers' compensation losses is

Services not needed by a self-insurer are

As interest rates increase, self-insurance for workers' compensation becomes more attractive.

Self insurance always saves a firm money.

In 2001 private insurers paid 55 percent of all workers' compensation losses.

Which of the following items is not part of the retrospective premium?

The advantages of private commercial insurers over state funds and self-insurance in the workers' compensation field include all but one of the following:

Workers' compensation usually replaces

When three-year expected losses are greater than $100,000, most firms should self-insure workers' compensation.

Match the descriptions with their terms: -Converted losses equal losses times the _________________.

The retrospective system of rating is designed for small insureds.

Match the descriptions with their terms: -Even when firms self-insure, they often purchase ________________.

The workers' compensation policy insures

Match the descriptions with their terms: -_________________ covers the loss of income and medical costs resulting from work-related accidents.

Which of the following is not a workers' compensation benefit?

A factor that favors purchasing workers' compensation insurance is

The IRS is more likely to allows tax deductions for premiums paid to a single parent captive than an association captive.

Match the descriptions with their terms: -A/An _________________ reduces residual market assessment.