FINA 4357 MIDTERM II with correct answers 100% 2026

FINA 4357 MIDTERM II with correct answers 100% 2026 Benefits Provided (5) Workers Compensation Statutory Coverage - Correct Answer 1. Medical 2. Rehabilitation 3. Death 4. Disability 5. Indemnity (lost wages) What conditions are necessary for injury or illness to be considered compensatory under Workers Compensation? - Correct Answer Accidental injury or illness Arising from employment In the course of employment Independent Contractors Workers Compensation - Correct Answer Not the company's responsibility, unless no insurance - then becomes Statutory "Statutory" Employees Workers Compensation - Correct Answer Independent contractor's employee (who has no workers compensation of its own) is considered to be an employee of company employing them Temporary Workers Workers Compensation - Correct Answer Coverage provided by providing firm with the client company listed as an alternate employer Leased Employees Workers Compensation - Correct Answer Provided by PEO, usually under a separate policy showing the client company and the PEO as named insureds Domestic & Farm Workers in TX Workers Compensation - Correct Answer Excluded classes in TX; not covered (Voluntary Compensation Endorsement) Assigned Risk Plan "Involuntary Market" - Correct Answer When private insurance is unattainable due to not meeting underwriting criteria, business applies for ARP (if previously rejected) -- state then "assigns" applicant to be insured by a private insurer Competitive State Fund - Correct Answer Sells workers compensation in competition with private insurers Monopolistic State Fund "Exclusive State Fund" - Correct Answer A facility, owned by state government, that prohibits other insurers to sell workers compensation in said state (Stop Gap Coverage) Statutory Workers Compensation vs. Employer's Liability - Correct Answer WC - pays benefits EL - responds if company is sued Employer's Liability Circumstances (7) - Correct Answer 1. Gross negligence 2. Loss of consortium 3. Consequential bodily injury 4. Dual capacity 5. Excluded employees 6. Third party "brings in" employer 7. Employer has assumed liability of another party for injury to their workers Consequential Bodily Injury - Correct Answer Worker gets sick, comes home, infects family Dual Capacity - Correct Answer Workers compensation and product defect Hurt by product own company Excluded Employees - Correct Answer Domestic and farm workers, add to policy Third party "brings in" employer - Correct Answer E.g. Removed safety lock, injury happens due to company's direction Employer has assumed liability of another party for injury to their workers - Correct Answer Someone else's negligence affects worker Jones Act - Correct Answer Covers members of a vessel's crew LHWCA Longshore and Harbor Workers Act - Correct Answer Covers maritime employees (except master/crew of a vessel) Defense Base Act - Correct Answer Covers: 1. Civilian employees at US military bases acquired from foreign governments 2. Civilian employees working overseas under contracts with agencies of US government War Hazard Compensation Act - Correct Answer Covers: 1. Civilian employees at US military bases acquired from foreign governments 2. Civilian employees working overseas under contracts with agencies of US government WHILE IN A WAR ZONE, INJURED BY WAR-RISK HAZARD Outer Continental Shelf Lands Act - Correct Answer Covers employees on fixed offshore drilling and production platforms Nonappropriated Fund Instrumentalities Act - Correct Answer Covers civilian employees of "non-appropriated" fund instrumentalities on US military bases, (e.g. stores, theaters) Federal Black Lung Benefits Act - Correct Answer Covers coal miners who suffered/are suffering from black lung disease and were/are employed in one+ underground coal mines for 10+ years Federal Employees' Compensation Act - Correct Answer Covers nonmilitary employees of the US government Why is it important that all US states and territories where an employer might possibly have a Workers Compensation exposure be listed in the policy? - Correct Answer If not listed and injury happens: uncovered claim and lawsuit Solution: List all (hard) OR use All State Endorsement (no coverage in monopolistic) "Stop Gap" Coverage - Correct Answer In a monopolistic fund, prevents a that company is left lacking employers liability coverage T/F: workers compensation insurance will cover an employee while temporarily overseas on business including repatriation expenses. - Correct Answer False Does not cover bringing employees back to the US Solution: Voluntary Compensation endorsement Voluntary Compensation and Employer's Liability - Correct Answer Covers employees who are not subject to a workers compensation statute (domestic and farm workers) Foreign Voluntary Compensation & Employer's Liability - Correct Answer Covers employees working outside the US without workers compensation coverage for benefits with workers compensation under a specific state or federal compensation act True Foreign Workers Compensation coverage - Correct Answer If the employee is permanently stationed overseas (e.g. three years) Experience rating - Correct Answer Method of recognizing claims history by rewarding insureds with good records (rate credit) and penalizing insureds with poor records (rate debits) Considers past three year history, excepting most recent 12 months Fiduciary duties (5) - Correct Answer 1. Duty of Care 2. Duty of Loyalty to the Corporation 3. Duty of Loyalty to the Stockholders 4. Duty of Disclosure 5. Duty of Obedience Duty of care "Duty of Diligence" - Correct Answer Act in good faith and corporations best interests Act in informed judgment Duty of loyalty to the corporation - Correct Answer Do not seize business opportunities from corporation or own competing businesses Duty of loyalty to the stockholders - Correct Answer Cannot use insider information Duty of disclosure - Correct Answer Disclose factual information to all relevant persons Duty of obedience - Correct Answer Follow the law (federal and state, corporate charter)