AINS 23 Ch 9 Worker's Comp Exam Questions with Correct Answers
Question 1:
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained
for work-related injuries. The employee population of MMC is a mixture of full-time and
part-time employees as well as some casual employees for one-time tasks. Much of MMC's
work is done by independent contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is true?
Injuries to MMC's full-time ship captains are likely to be covered under state workers
compensation laws. Many states workers compensation statutes exclude casual labor
(short-term employees).
The independent contractors are automatically employees under common law.
Temporary employees are considered employees of MMC rather than employees of the firm
supplying them to MMC.
Answer:
B. Many states workers compensation statutes exclude casual labor (short-term employees).
Question 2:
Before workers compensation statutes were enacted, what was the remedy for employees with
work-related injuries?
They received guaranteed payments. They were covered by no-fault protection.
They had no right to sue their employers for compensation.
They had to establish that the employer was at fault to recover damages.
Answer:
D. They had to establish that the employer was at fault to recover damages.
Question 3:
Workers compensation benefits include which one of the following? Property damage benefits
Death benefits of 100 percent of wage loss Pain and suffering benefits
Rehabilitation benefits
Answer:
D. Rehabilitation benefits
Question 4:
To be covered under a workers compensation statute, an injury or disease (in most states) must
meet which one of the following requirements?
Occur away from the regular work premises Result from the employer's negligence
Answer:
D. Arise out of and in the course of the employment.
, Question 5:
Which one of the following requirements must be met before an employer may operate a
"qualified" self-insurance workers compensation plan?
A small number of employees located in several states Posting a surety bond
Purchase of excess insurance Rejection by private insurers
Answer:
B. Posting a surety bond
A federal workers compensation statute eliminates the right of most maritime workers (other
than crew members of vessels) to sue their employers and in return requires such employers to
provide injured or ill workers with benefits like those provided by state workers compensation
statutes. The name of this statute is the
Jones Act.
United States Merchant Marine Act. Federal Employers' Liability Act.
Question 6:
United States Longshore and Harbor Workers' Compensation Act (LHWCA).
Answer:
D. United States Longshore and Harbor Workers' Compensation Act (LHWCA)
Question 7:
An employer that decides to purchase specific excess insurance to cover catastrophic workers
compensation losses must pay losses that are which one of the following?
Above the retained limit and up to the policy limits. Up to the retention for one occurrence.
Up to an aggregate amount for the policy period.
Above the amount covered by the monopolistic state fund.
Answer:
B. Up to the retention for one occurrence.
Question 8:
Which one of the following statements is correct regarding the application of workers
compensation laws in foreign countries?
Only a few countries have workers compensation laws comparable to those found in the U.S.
and Canada. Foreign workers compensation laws are virtually identical to U.S. Laws.
Answer:
A. Only a few countries have workers compensation laws comparable to those found in the U.S.
and Canada.
Question 1:
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained
for work-related injuries. The employee population of MMC is a mixture of full-time and
part-time employees as well as some casual employees for one-time tasks. Much of MMC's
work is done by independent contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is true?
Injuries to MMC's full-time ship captains are likely to be covered under state workers
compensation laws. Many states workers compensation statutes exclude casual labor
(short-term employees).
The independent contractors are automatically employees under common law.
Temporary employees are considered employees of MMC rather than employees of the firm
supplying them to MMC.
Answer:
B. Many states workers compensation statutes exclude casual labor (short-term employees).
Question 2:
Before workers compensation statutes were enacted, what was the remedy for employees with
work-related injuries?
They received guaranteed payments. They were covered by no-fault protection.
They had no right to sue their employers for compensation.
They had to establish that the employer was at fault to recover damages.
Answer:
D. They had to establish that the employer was at fault to recover damages.
Question 3:
Workers compensation benefits include which one of the following? Property damage benefits
Death benefits of 100 percent of wage loss Pain and suffering benefits
Rehabilitation benefits
Answer:
D. Rehabilitation benefits
Question 4:
To be covered under a workers compensation statute, an injury or disease (in most states) must
meet which one of the following requirements?
Occur away from the regular work premises Result from the employer's negligence
Answer:
D. Arise out of and in the course of the employment.
, Question 5:
Which one of the following requirements must be met before an employer may operate a
"qualified" self-insurance workers compensation plan?
A small number of employees located in several states Posting a surety bond
Purchase of excess insurance Rejection by private insurers
Answer:
B. Posting a surety bond
A federal workers compensation statute eliminates the right of most maritime workers (other
than crew members of vessels) to sue their employers and in return requires such employers to
provide injured or ill workers with benefits like those provided by state workers compensation
statutes. The name of this statute is the
Jones Act.
United States Merchant Marine Act. Federal Employers' Liability Act.
Question 6:
United States Longshore and Harbor Workers' Compensation Act (LHWCA).
Answer:
D. United States Longshore and Harbor Workers' Compensation Act (LHWCA)
Question 7:
An employer that decides to purchase specific excess insurance to cover catastrophic workers
compensation losses must pay losses that are which one of the following?
Above the retained limit and up to the policy limits. Up to the retention for one occurrence.
Up to an aggregate amount for the policy period.
Above the amount covered by the monopolistic state fund.
Answer:
B. Up to the retention for one occurrence.
Question 8:
Which one of the following statements is correct regarding the application of workers
compensation laws in foreign countries?
Only a few countries have workers compensation laws comparable to those found in the U.S.
and Canada. Foreign workers compensation laws are virtually identical to U.S. Laws.
Answer:
A. Only a few countries have workers compensation laws comparable to those found in the U.S.
and Canada.
