CAWC EXAM QUESTIONS AND ANS
What care cthe cdifferent ctypes cof cWorkers cCompensation cProducts? c- ccorrect
canswers✔✔Guaranteed cCost
Small cDeductible cPlan
Large cDeductible cPlan
Retroactive cRating cPlan
Guaranteed cCost c- ccorrect canswers✔✔Premium cdoesn't cvary cthat cmuch cduring ca
cpolicy cperiod ceven cif cthere care cconsiderable/limited closses. cCarrier cAssumes call
cthe crisk
Dividend cPlans c- ccorrect canswers✔✔Goes calong cwith cGuaranteed cCost; callows
cinsured copportunity cto creceive cmoney cback cafter cpolicy cperiod chas cended
Small cDeductible cPlan c- ccorrect canswers✔✔Policy cholder cshares ccost cof cclaims cof
cthe cinjured cworker
Retrospective cRating cPlan c- ccorrect canswers✔✔Premium ccalculated cafter cthe cpolicy
cperiod chas cended; cTakes cinto cconsideration call closses cthat coccurred. cLarge closs c>
cmore cpremium. cSmall closs c> cless cpremium. c"loss csensitive"- camount cof closses
caffect cpremium
Large cDeductible cPlan c- ccorrect canswers✔✔Insured cassumes cmore crisk cby cpaying
csubstantial cportions c(or call) cof ceach cclaim. cLower cinitial cpremium. cPays cfor closses
cas cthey coccur
Monopolistic cstates c- ccorrect canswers✔✔North cDakota, cOhio, cWashington,
cWyoming; cWorkers ccomp cregulated cand ccontrolled cby cthe cstate; cno cprivate
cinsurance ccarriers
State cFunds c- ccorrect canswers✔✔25 cStates coffer cworkers ccompensation
Competitive cState cFunds c- ccorrect canswers✔✔21 cstates chave cstate coffered
cworkers ccompensation cinsurance cbut cprivate cinsurance ccarriers care cpermitted cto
csell cWC cinsurance
Self cInsurance c- ccorrect canswers✔✔Employer cretains cthe crisk cof cworkers
ccompensation closses cif cthey chave cthe cfinancial cmeans cto cdo cso;
Excess cInsurance c- ccorrect canswers✔✔Typically cpurchased cby cemployer cwho cself-
insures; ccover closses cover ca cspecified camount, cprovides cadditional ccoverage cfor c$
$$ cclaims
, Assigned cRisk c- ccorrect canswers✔✔provide ccoverage cfor ccompanies cthat ccannot
cobtain cinsurance cdue cto cvery chigh crisk cand cpoor closs chistory
Employer's cLiability/ cStop-gap cCoverage c- ccorrect canswers✔✔Coverage cfor
cemployer cagainst claw cliability cfor cinjured cworkers cwhose cinjuries care cnot ccovered
cby cworkers ccomp claws
What cfactors c/ ceconomic cconditions caffect cworkers ccompensation cpremium? c-
ccorrect canswers✔✔Hard cand cSoft cMarkets
Hard cMarket c- ccorrect canswers✔✔Rates care chigher, cnot ca clot cof cnegotiation cwith
cemployers cwhen cbuying/renewing cpolicies, cCarrier chas cgreater cleverage. cStricter
cUnderwriting cpractices. cShorter cduration clasting c3-5 cyears
Soft cMarket c- ccorrect canswers✔✔Rates care clower, cEmployers chave cgreater
cleverage cto cnegotiate cpremiums, c"not cas ctough" cunderwriting cpractices, chigher
cpolicy climit, clonger cduration clasting c6-8 cyears
CAIF cestimated c_______________ cto cbe cestimated ctotal ccost cof cinsurance cfraud
cper cyear c- ccorrect canswers✔✔+$80 cbillion
Employee cFraud c- ccorrect canswers✔✔Claims ca cbogus cinjury cto cget cpaid ctime coff.
cTells cemployer cit chappened con cjob cwhen cit chappened con cpersonal ctime
Insurance cFraud c- ccorrect canswers✔✔Intentional cmisrepresentation cof cfacts cand
ccircumstances cto can cinsurance ccompany cto cillegally cobtain cfunds
Employer cFraud c- ccorrect canswers✔✔Employer clowers cthe camount cof cthe ccompany
cpayroll cto clower cpremium cpayments, cemployer csays cemployees care cindependent
ccontractors,Employer cmisrepresents cemployee cduties/ crisk cto cget clower cpremiums
Premium cFraud c- ccorrect canswers✔✔Lying cabout camount cof cthe cpayroll,
cmisrepresented cjob ccodes, cnot ccarrying cthe crequired cworkers ccomp cinsurance,
cexperience cmod cevasion
How cdoes cExperience cMod cEvasion cfactor cinto cinsurance cfraud? c- ccorrect
canswers✔✔It cis ca ctype cof cemployer cfraud cand cpremium cfraud
What care cthe c2 ctypes cof cAgent cFraud? c- ccorrect canswers✔✔Delaying cthe
cPayment, cKeeping cthe cPremium
Delaying cthe cPayment c- ccorrect canswers✔✔Agent cdoesn't cimmediately csend
cclient's cpayment cto cinsurance ccarrier, cputs cmoney cin can cinterest-bearing caccount,
ccollects cinterest con cmoney, csends coriginal cpremium cminus cinterest cto cinsurance
ccarrier.
What care cthe cdifferent ctypes cof cWorkers cCompensation cProducts? c- ccorrect
canswers✔✔Guaranteed cCost
Small cDeductible cPlan
Large cDeductible cPlan
Retroactive cRating cPlan
Guaranteed cCost c- ccorrect canswers✔✔Premium cdoesn't cvary cthat cmuch cduring ca
cpolicy cperiod ceven cif cthere care cconsiderable/limited closses. cCarrier cAssumes call
cthe crisk
Dividend cPlans c- ccorrect canswers✔✔Goes calong cwith cGuaranteed cCost; callows
cinsured copportunity cto creceive cmoney cback cafter cpolicy cperiod chas cended
Small cDeductible cPlan c- ccorrect canswers✔✔Policy cholder cshares ccost cof cclaims cof
cthe cinjured cworker
Retrospective cRating cPlan c- ccorrect canswers✔✔Premium ccalculated cafter cthe cpolicy
cperiod chas cended; cTakes cinto cconsideration call closses cthat coccurred. cLarge closs c>
cmore cpremium. cSmall closs c> cless cpremium. c"loss csensitive"- camount cof closses
caffect cpremium
Large cDeductible cPlan c- ccorrect canswers✔✔Insured cassumes cmore crisk cby cpaying
csubstantial cportions c(or call) cof ceach cclaim. cLower cinitial cpremium. cPays cfor closses
cas cthey coccur
Monopolistic cstates c- ccorrect canswers✔✔North cDakota, cOhio, cWashington,
cWyoming; cWorkers ccomp cregulated cand ccontrolled cby cthe cstate; cno cprivate
cinsurance ccarriers
State cFunds c- ccorrect canswers✔✔25 cStates coffer cworkers ccompensation
Competitive cState cFunds c- ccorrect canswers✔✔21 cstates chave cstate coffered
cworkers ccompensation cinsurance cbut cprivate cinsurance ccarriers care cpermitted cto
csell cWC cinsurance
Self cInsurance c- ccorrect canswers✔✔Employer cretains cthe crisk cof cworkers
ccompensation closses cif cthey chave cthe cfinancial cmeans cto cdo cso;
Excess cInsurance c- ccorrect canswers✔✔Typically cpurchased cby cemployer cwho cself-
insures; ccover closses cover ca cspecified camount, cprovides cadditional ccoverage cfor c$
$$ cclaims
, Assigned cRisk c- ccorrect canswers✔✔provide ccoverage cfor ccompanies cthat ccannot
cobtain cinsurance cdue cto cvery chigh crisk cand cpoor closs chistory
Employer's cLiability/ cStop-gap cCoverage c- ccorrect canswers✔✔Coverage cfor
cemployer cagainst claw cliability cfor cinjured cworkers cwhose cinjuries care cnot ccovered
cby cworkers ccomp claws
What cfactors c/ ceconomic cconditions caffect cworkers ccompensation cpremium? c-
ccorrect canswers✔✔Hard cand cSoft cMarkets
Hard cMarket c- ccorrect canswers✔✔Rates care chigher, cnot ca clot cof cnegotiation cwith
cemployers cwhen cbuying/renewing cpolicies, cCarrier chas cgreater cleverage. cStricter
cUnderwriting cpractices. cShorter cduration clasting c3-5 cyears
Soft cMarket c- ccorrect canswers✔✔Rates care clower, cEmployers chave cgreater
cleverage cto cnegotiate cpremiums, c"not cas ctough" cunderwriting cpractices, chigher
cpolicy climit, clonger cduration clasting c6-8 cyears
CAIF cestimated c_______________ cto cbe cestimated ctotal ccost cof cinsurance cfraud
cper cyear c- ccorrect canswers✔✔+$80 cbillion
Employee cFraud c- ccorrect canswers✔✔Claims ca cbogus cinjury cto cget cpaid ctime coff.
cTells cemployer cit chappened con cjob cwhen cit chappened con cpersonal ctime
Insurance cFraud c- ccorrect canswers✔✔Intentional cmisrepresentation cof cfacts cand
ccircumstances cto can cinsurance ccompany cto cillegally cobtain cfunds
Employer cFraud c- ccorrect canswers✔✔Employer clowers cthe camount cof cthe ccompany
cpayroll cto clower cpremium cpayments, cemployer csays cemployees care cindependent
ccontractors,Employer cmisrepresents cemployee cduties/ crisk cto cget clower cpremiums
Premium cFraud c- ccorrect canswers✔✔Lying cabout camount cof cthe cpayroll,
cmisrepresented cjob ccodes, cnot ccarrying cthe crequired cworkers ccomp cinsurance,
cexperience cmod cevasion
How cdoes cExperience cMod cEvasion cfactor cinto cinsurance cfraud? c- ccorrect
canswers✔✔It cis ca ctype cof cemployer cfraud cand cpremium cfraud
What care cthe c2 ctypes cof cAgent cFraud? c- ccorrect canswers✔✔Delaying cthe
cPayment, cKeeping cthe cPremium
Delaying cthe cPayment c- ccorrect canswers✔✔Agent cdoesn't cimmediately csend
cclient's cpayment cto cinsurance ccarrier, cputs cmoney cin can cinterest-bearing caccount,
ccollects cinterest con cmoney, csends coriginal cpremium cminus cinterest cto cinsurance
ccarrier.
