CAWC Exam Study Guide – Key Concepts, Revision Notes & Practice Questions
What is the choice of Law Provision Jurisdiction? - correct answer ✔✔Employee can select
which state to receive benefits from if injury occurred in state the worker does not normally
work in
What are the 3 main characteristics of a soft market? - correct answer ✔✔1. Rates are lower
2. Employers use their leverage to negotiate premiums
3. Underwriting practices are not as tough and higher policy limits are more likely to be written
What are the 3 main characteristics of a hard market? - correct answer ✔✔1. Rates are higher
2. No negotiation with employers when buying or renewing policy
3. Carriers tend to have greater leverage, excercise, strictier underwriting process
What are the two most common ways an agent commits fraud? - correct answer ✔✔1. Delaying
the payment
2. Keeping the premium
What are the 3 elements an injury must meet in order to compensable? - correct answer ✔✔1.
Accidental
2. Arising out of employment
3. In the course employment
What does "arising out of" refer to? - correct answer ✔✔It was caused by some circumstance of
employment
What does "in the course of" refer to? - correct answer ✔✔Circumstance of Injurys occurence,
the time and place in which it happens
, Which disability benefit is not measurable until maximum medical improvement (MMI) has
been reached? - correct answer ✔✔Permanent Partial Disability (PPD)
What is split point? - correct answer ✔✔Factor that decides if a loss into primary bucket or
excess
What is the manual premium formula? - correct answer ✔✔Payroll/100 x classification factor =
premimum
What is the basic eMod formula? - correct answer ✔✔Actual losses/Expected losses = Emod
factor
What are 3 out of the 5 standard exceptions called during classifications class? - correct answer
✔✔1. 8810 Clerical Office Employees
2. 8871 Clerical Telecommuter Employees
3. 7380 Drivers, Chaffeurs, and Messengers
What are two examples of indirect costs? - correct answer ✔✔1. Building damage
2. Production and Materials Damage
What is the formula to calculate indirect costs? - correct answer ✔✔Direct costs x indirect
multiplier =indirect costs
What are 3 out of the 6 loss control triggers that intiates a loss control unit? - correct answer
✔✔1. Pre-policy inspection
2. Premium levels
3. Agent or insured request
What is the choice of Law Provision Jurisdiction? - correct answer ✔✔Employee can select
which state to receive benefits from if injury occurred in state the worker does not normally
work in
What are the 3 main characteristics of a soft market? - correct answer ✔✔1. Rates are lower
2. Employers use their leverage to negotiate premiums
3. Underwriting practices are not as tough and higher policy limits are more likely to be written
What are the 3 main characteristics of a hard market? - correct answer ✔✔1. Rates are higher
2. No negotiation with employers when buying or renewing policy
3. Carriers tend to have greater leverage, excercise, strictier underwriting process
What are the two most common ways an agent commits fraud? - correct answer ✔✔1. Delaying
the payment
2. Keeping the premium
What are the 3 elements an injury must meet in order to compensable? - correct answer ✔✔1.
Accidental
2. Arising out of employment
3. In the course employment
What does "arising out of" refer to? - correct answer ✔✔It was caused by some circumstance of
employment
What does "in the course of" refer to? - correct answer ✔✔Circumstance of Injurys occurence,
the time and place in which it happens
, Which disability benefit is not measurable until maximum medical improvement (MMI) has
been reached? - correct answer ✔✔Permanent Partial Disability (PPD)
What is split point? - correct answer ✔✔Factor that decides if a loss into primary bucket or
excess
What is the manual premium formula? - correct answer ✔✔Payroll/100 x classification factor =
premimum
What is the basic eMod formula? - correct answer ✔✔Actual losses/Expected losses = Emod
factor
What are 3 out of the 5 standard exceptions called during classifications class? - correct answer
✔✔1. 8810 Clerical Office Employees
2. 8871 Clerical Telecommuter Employees
3. 7380 Drivers, Chaffeurs, and Messengers
What are two examples of indirect costs? - correct answer ✔✔1. Building damage
2. Production and Materials Damage
What is the formula to calculate indirect costs? - correct answer ✔✔Direct costs x indirect
multiplier =indirect costs
What are 3 out of the 6 loss control triggers that intiates a loss control unit? - correct answer
✔✔1. Pre-policy inspection
2. Premium levels
3. Agent or insured request
