CAWC EXAM QUESTIONS &
ANSWERS(RATED A+)
1911 - ANSWERIn what year did Wisconsin become the first state to enact a
Worker's Compensation law to stand up to constitutional laws?
1948 - ANSWERWhen did every other state enact a Workers Compensation law?
Accidental, arising out of employment, in the course of employment - ANSWERWhat
3 criteria does an injury have to meet to be compensable?
Most courts deem an injury to have arisen out of employment if injury resulted from a
risk to which the worker was more subject than the public is. - ANSWERWhat is the
Increased Risk Principle?
In certain states, when a worker is exposed to a risk because of employment, any
resulting injuries are compensable. Liberalized version of "Arising out of" -
ANSWERWhat is the But For Principle?
Defense used when co-worker was involved. It asserted that the co-worker was
involved with the injury and the employer was not liable. - ANSWERWhat was the
Fellow Servant Law?
Defense that stated employee was aware of risk when they took the position, the
employer was not liable. - ANSWERWhat was the assumption of risk The
Assumption of Risk?
Asserted that employee was careless or played a part in the injury, employee not
liable. - ANSWERWhat was Contributory Negligence?
The employee can decide which state they would like to receive benefits from.
Includes where the injury occurred, where the usually work, or where they were
hired. - ANSWERWhat is the Choice of Law Provision?
Compulsory in some states and elective in others. In elective states, it is usually
combined with workers comp policy. If an employer in a compulsory state does not
have this coverage, they can face a fine or closure of the business. - ANSWERWhat
can happen if an employer doesn't have liability coverage?
Any type of discrimination claims such as: age, racial, sexual etc. - ANSWERWhat
does employers' liability insurance not cover?
higher rates, less negotiation, carriers greater leverage, stricter underwriting
practices, and lower coverage limits - ANSWERWhat are the characteristics of a
hard market?
, 3-5 years, usually shorter than soft market - ANSWERHow long does a hard market
typically last?
lower rates, more negotiation, employer has greater leverage, not as tough
underwriting practices, and higher policy limits, loss control is important -
ANSWERWhat are the characteristics of a soft market?
6-8 years - ANSWERHow long does a soft market last?
80 billion dollars a year - ANSWERWhat is the cost of insurance fraud annually in
the US?
Delaying the Payment and Holding the Payment - ANSWERWhat are the two types
of agent fraud?
• Tolerate insurance fraud to a fair extent
• Believe that many people do it, making it
more acceptable
• Support moderate forms of punishment
• Represent 26.4% of surveyed
population - ANSWERWhat are the characteristics of Conformists?
• Tolerate insurance fraud to a low extent
• Believe some behaviors are justified
depending on the circumstances
• Are not advocates of strong punishment
• Represent 21.6% of surveyed
population - ANSWERWhat are the characteristics of Realists?
Another term for the "But for principle". whenever the employment places a worker in
the time and place in which an injury occurs that would not have occurred otherwise,
the injury is compensable. - ANSWERWhat is the Positional Risk Doctrine?
• It must be related to the injury.
• It must be reasonable in the amount of care given and the amount charged.
• It must be necessary to cure or relieve the injury. - ANSWERWhat is the three
criteria for medical benefits to be covered?
occurs when an injured employee is able to
continue working, at reduced efficiency, but is expected to recover and return to full
duties and hours. The benefit payable is usually a percentage (typically 66.67
percent) - ANSWERWhat is Temporary Partial Disability (TPD)?
occurs when the injured employee, although
permanently disabled, has lost only certain functioning. Thus, an employee with a
permanent partial disability is able to work, but at reduced capacity - ANSWERWhat
is Permanent Partial Disability (PPD)?
when maximum medical improvement (MMI) is reached - ANSWERAt what point is
the degree of permanent partial disability measurable?
ANSWERS(RATED A+)
1911 - ANSWERIn what year did Wisconsin become the first state to enact a
Worker's Compensation law to stand up to constitutional laws?
1948 - ANSWERWhen did every other state enact a Workers Compensation law?
Accidental, arising out of employment, in the course of employment - ANSWERWhat
3 criteria does an injury have to meet to be compensable?
Most courts deem an injury to have arisen out of employment if injury resulted from a
risk to which the worker was more subject than the public is. - ANSWERWhat is the
Increased Risk Principle?
In certain states, when a worker is exposed to a risk because of employment, any
resulting injuries are compensable. Liberalized version of "Arising out of" -
ANSWERWhat is the But For Principle?
Defense used when co-worker was involved. It asserted that the co-worker was
involved with the injury and the employer was not liable. - ANSWERWhat was the
Fellow Servant Law?
Defense that stated employee was aware of risk when they took the position, the
employer was not liable. - ANSWERWhat was the assumption of risk The
Assumption of Risk?
Asserted that employee was careless or played a part in the injury, employee not
liable. - ANSWERWhat was Contributory Negligence?
The employee can decide which state they would like to receive benefits from.
Includes where the injury occurred, where the usually work, or where they were
hired. - ANSWERWhat is the Choice of Law Provision?
Compulsory in some states and elective in others. In elective states, it is usually
combined with workers comp policy. If an employer in a compulsory state does not
have this coverage, they can face a fine or closure of the business. - ANSWERWhat
can happen if an employer doesn't have liability coverage?
Any type of discrimination claims such as: age, racial, sexual etc. - ANSWERWhat
does employers' liability insurance not cover?
higher rates, less negotiation, carriers greater leverage, stricter underwriting
practices, and lower coverage limits - ANSWERWhat are the characteristics of a
hard market?
, 3-5 years, usually shorter than soft market - ANSWERHow long does a hard market
typically last?
lower rates, more negotiation, employer has greater leverage, not as tough
underwriting practices, and higher policy limits, loss control is important -
ANSWERWhat are the characteristics of a soft market?
6-8 years - ANSWERHow long does a soft market last?
80 billion dollars a year - ANSWERWhat is the cost of insurance fraud annually in
the US?
Delaying the Payment and Holding the Payment - ANSWERWhat are the two types
of agent fraud?
• Tolerate insurance fraud to a fair extent
• Believe that many people do it, making it
more acceptable
• Support moderate forms of punishment
• Represent 26.4% of surveyed
population - ANSWERWhat are the characteristics of Conformists?
• Tolerate insurance fraud to a low extent
• Believe some behaviors are justified
depending on the circumstances
• Are not advocates of strong punishment
• Represent 21.6% of surveyed
population - ANSWERWhat are the characteristics of Realists?
Another term for the "But for principle". whenever the employment places a worker in
the time and place in which an injury occurs that would not have occurred otherwise,
the injury is compensable. - ANSWERWhat is the Positional Risk Doctrine?
• It must be related to the injury.
• It must be reasonable in the amount of care given and the amount charged.
• It must be necessary to cure or relieve the injury. - ANSWERWhat is the three
criteria for medical benefits to be covered?
occurs when an injured employee is able to
continue working, at reduced efficiency, but is expected to recover and return to full
duties and hours. The benefit payable is usually a percentage (typically 66.67
percent) - ANSWERWhat is Temporary Partial Disability (TPD)?
occurs when the injured employee, although
permanently disabled, has lost only certain functioning. Thus, an employee with a
permanent partial disability is able to work, but at reduced capacity - ANSWERWhat
is Permanent Partial Disability (PPD)?
when maximum medical improvement (MMI) is reached - ANSWERAt what point is
the degree of permanent partial disability measurable?
