Unit 20: Workers' Compensation

Question 1

Common Law Defenses

Assumption of Risk

Answer 1

• employee knew of job risks
• employer not at fault

Question 2

Common Law Defenses

Answer 2

• if employee partly at fault, considered to be totally at fault
• employer not at fault

Question 3

After states passed workers’ compensation laws - no fault

Answer 3

• employer agrees to pay regardless of fault
• benefits of the law are the employee’s exclusive remedy

Question 4

Workers’ Compensation Benefits

Answer 4

• medical
• disability
• survivor
• burial
• rehabilitation

Question 5

Injury or Disease

Answer 5

• injury must occur in the course and scope of employment
• disease must be caused by a specific type of employment

Question 6

Compulsory or Elective

Answer 6

almost all states require employers to comply with the provisions of the law

in an elective state, the employer does not have to comply
- can be sued
- cannot claim common law defenses: assumption of risk, contributory negligence, fellow servant

Question 7

Funding of Benefits

Answer 7

• private workers’ compensation insurance policy
• monopolistic: insurance bought from the state
• competitive: insurance bought privately or from the state
• self-insurance: employer has savings to pay claims
• group insurance: members of the same group

Question 8

Part One - Workers’ Compensation Benefits

Answer 8

• pays the workers’ compensation benefits of the state law
• no dollar limit unless in the law

Question 9

Part Two - Employers Liability

Answer 9

pays when the employer is sued outside of the workers’ compensation law
- policy limit per accident
- policy limit for all bodily injury claims by disease
- policy limit per employee for bodily injury by disease

does not pay workers’ compensation benefits

Question 10

Part Three - Other States

Answer 10

pays the workers’ compensation benefits of state island

Question 11

Part Four - Your Duty if Injury Occurs

Answer 11

the insured’s obligations
- provide medical services required for the injured party
- report the injury to the insurer
- cooperate with the insurer in the investigation and settlement of the claim

Question 12

Part Five - Premium

Answer 12

explains how the cost of the policy is determined

Question 13

Part Six - Conditions

Answer 13

• subrogation
• inspection
• cancellation