Question 1

Which of the following is not an economic benefit to society of unemployment insurance?

Accepted Answer

A)  Provides employers a liability-free way to discharge employees without cause 
B)  Provides spendable cash for dismissed employees 
C)  Abates the downward spiral of the economy because of reduced spending 
D)  Helps keep families together under hard economic times 
A)  Provides employers a liability-free way to discharge employees without cause 
B)  Provides spendable cash for dismissed employees 
C)  Abates the downward spiral of the economy because of reduced spending 
D)  Helps keep families together under hard economic times A

Question 2

If a state collects unemployment taxes, then federal unemployment taxes are offset by up to:

Accepted Answer

A)  50% 
B)  70% 
C)  90% 
D)  100% 
A)  50% 
B)  70% 
C)  90% 
D)  100% C

Question 3

Each of the following describes a condition under which an employee is injured on the job. Under which of these would the employer not have to provide workers' compensation benefits to the injured employee?

Accepted Answer

A)  Employee falls asleep on the job 
B)  Employee is distracted by a fellow employee 
C)  Employee was late for work 
D)  Employee had several beers before work 
A)  Employee falls asleep on the job 
B)  Employee is distracted by a fellow employee 
C)  Employee was late for work 
D)  Employee had several beers before work D

Question 4

Which one of the following is not a concern of the risk manager with respect to workers' compensation?

Accepted Answer

A)  Health-related costs 
B)  Cumulative injury problems 
C)  The increasing frequency of litigation concerning compensation 
D)  The increasing use of the assumption of risk defense to deny workers' compensation claims 
A)  Health-related costs 
B)  Cumulative injury problems 
C)  The increasing frequency of litigation concerning compensation 
D)  The increasing use of the assumption of risk defense to deny workers' compensation claims

Question 5

Experience rating of the unemployment program has which of the following effects?

Accepted Answer

A)  Penalizes good employers that never fire employees 
B)  Encourages short-term layoffs and causes an unstable workforce 
C)  Charges employers more when the economy is weak, thus charging for poor experience when companies can least afford it 
D)  Provides funds to continue employment instead of dismissing employees 
A)  Penalizes good employers that never fire employees 
B)  Encourages short-term layoffs and causes an unstable workforce 
C)  Charges employers more when the economy is weak, thus charging for poor experience when companies can least afford it 
D)  Provides funds to continue employment instead of dismissing employees

Question 6

Explain the economic significance for the existence of unemployment insurance.

Accepted Answer

The economic significance lies in the au

Question 7

Unemployment benefits are usually available in which of the following situations?

Accepted Answer

A)  Worker voluntarily quits to find a better job 
B)  Worker fired for theft 
C)  Worker is laid-off when employer becomes bankrupt 
D)  Worker is participating in a strike 
A)  Worker voluntarily quits to find a better job 
B)  Worker fired for theft 
C)  Worker is laid-off when employer becomes bankrupt 
D)  Worker is participating in a strike

Question 8

Intentionally self-inflicted injuries are usually, though not always, covered by workers' compensation insurance.

Accepted Answer

A) True 
 B)False

Question 9

Experience rating of workers' compensation insurance rewards employers with good safety records.

Accepted Answer

A) True 
 B)False

Question 10

List and explain briefly the purposes of the workers' compensation laws.

Accepted Answer

1) Broad coverage of employees, work rel

Question 11

Unemployment insurance is financed by a ________ on covered wages.

Accepted Answer

A)  7.65% federal tax on covered wages up to $7,000 
B)  6% federal tax on covered wages up to $7,000 
C)  5.4% federal tax on covered wages up to $87,000 
D)  6% state tax on covered wages up to $7,000 
A)  7.65% federal tax on covered wages up to $7,000 
B)  6% federal tax on covered wages up to $7,000 
C)  5.4% federal tax on covered wages up to $87,000 
D)  6% state tax on covered wages up to $7,000

Question 12

Which of the following is not a requirement for receiving unemployment benefits?

Accepted Answer

A)  Experience a waiting period before benefits are paid 
B)  Have an earnings record 
C)  Have a continuing interest in employment 
D)  The national unemployment percentage must exceed a certain level 
A)  Experience a waiting period before benefits are paid 
B)  Have an earnings record 
C)  Have a continuing interest in employment 
D)  The national unemployment percentage must exceed a certain level

Question 13

Which of the following was a common law defense used by employers prior to the enactment of workers' compensation laws?

Accepted Answer

A)  Strict liability 
B)  Comparative negligence 
C)  Contributory negligence 
D)  stare decisis 
A)  Strict liability 
B)  Comparative negligence 
C)  Contributory negligence 
D)  stare decisis

Question 14

Unemployment insurance is both a state and a federal program.

Accepted Answer

A) True 
 B)False

Question 15

Explain how a worker can be disqualified for unemployment benefits.

Accepted Answer

Disqualification may result fr

Question 16

Which of the following statements about workers' compensation insurance is true?

Accepted Answer

A)  The cost to employers has been increasing. 
B)  The premiums have been decreasing. 
C)  Insurers have been making high profits on this coverage. 
D)  None of the above 
A)  The cost to employers has been increasing. 
B)  The premiums have been decreasing. 
C)  Insurers have been making high profits on this coverage. 
D)  None of the above

Question 17

Government control over the money supply using interest rates to effect changes in the economy is called:

Accepted Answer

A)  fiscal policy 
B)  monetary policy 
C)  tax policy 
D)  transfer payments 
A)  fiscal policy 
B)  monetary policy 
C)  tax policy 
D)  transfer payments

Question 18

Workers' compensation insurance covers both job-related injuries and occupational diseases.

Accepted Answer

A) True 
 B)False

Question 19

The major change established by the passage of workers' compensation laws was to:

Accepted Answer

A)  help lawyers obtain more business 
B)  substitute the employer's liability without fault for the common law doctrine of negligence 
C)  enable the employer to effectively defend itself in a liability suit 
D)  bar the employee from recovery for job related injuries 
A)  help lawyers obtain more business 
B)  substitute the employer's liability without fault for the common law doctrine of negligence 
C)  enable the employer to effectively defend itself in a liability suit 
D)  bar the employee from recovery for job related injuries

Question 20

Workers' compensation is likely to cover all the following except:

Accepted Answer

A)  100 percent of lost wages during disability 
B)  medical expenses 
C)  rehabilitation expenses 
D)  reasonable funeral expenses 
A)  100 percent of lost wages during disability 
B)  medical expenses 
C)  rehabilitation expenses 
D)  reasonable funeral expenses

Exam 21: Unemployment and Workers Compensation Insurance

Which of the following is not an economic benefit to society of unemployment insurance?

If a state collects unemployment taxes, then federal unemployment taxes are offset by up to:

Each of the following describes a condition under which an employee is injured on the job. Under which of these would the employer not have to provide workers' compensation benefits to the injured employee?

Which one of the following is not a concern of the risk manager with respect to workers' compensation?

Experience rating of the unemployment program has which of the following effects?

Explain the economic significance for the existence of unemployment insurance.

Unemployment benefits are usually available in which of the following situations?

Intentionally self-inflicted injuries are usually, though not always, covered by workers' compensation insurance.

Experience rating of workers' compensation insurance rewards employers with good safety records.

List and explain briefly the purposes of the workers' compensation laws.

Unemployment insurance is financed by a ________ on covered wages.

Which of the following is not a requirement for receiving unemployment benefits?

Which of the following was a common law defense used by employers prior to the enactment of workers' compensation laws?

Unemployment insurance is both a state and a federal program.

Explain how a worker can be disqualified for unemployment benefits.

Which of the following statements about workers' compensation insurance is true?

Government control over the money supply using interest rates to effect changes in the economy is called:

Workers' compensation insurance covers both job-related injuries and occupational diseases.

The major change established by the passage of workers' compensation laws was to:

Workers' compensation is likely to cover all the following except:

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Commercial Property Insurance

Commercial Liability Insurance

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