CAWC Exam – Study Guide and Practice Review Material
In what year did Wisconsin become the first state to enact a Worker's Compensation law to
stand up to constitutional laws? - correct answer ✔✔1911
When did every other state enact a Workers Compensation law? - correct answer ✔✔1948
What was the Fellow Servant Law? - correct answer ✔✔Defense used when co-worker was
involved. It asserted that the co-worker was involved with the injury and the employer was not
liable.
What was the assumption of risk The Assumption of Risk? - correct answer ✔✔Defense that
stated employee was aware of risk when they took the position, the employer was not liable.
What was Contributory Negligence? - correct answer ✔✔Asserted that employee was careless
or played a part in the injury, employee not liable.
What is the Choice of Law Provision? - correct answer ✔✔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.
What can happen if an employer doesn't have liability coverage? - correct answer
✔✔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.
What does employers' liability insurance not cover? - correct answer ✔✔Any type of
discrimination claims such as: age, racial, sexual etc.
, What are the characteristics of a hard market? - correct answer ✔✔higher rates, less
negotiation, carriers greater leverage, stricter underwriting practices, and lower coverage limits
How long does a hard market typically last? - correct answer ✔✔3-5 years, usually shorter than
soft market
What are the characteristics of a soft market? - correct answer ✔✔lower rates, more
negotiation, employer has greater leverage, not as tough underwriting practices, and higher
policy limits, loss control is important
How long does a soft market last? - correct answer ✔✔6-8 years
What is the cost of insurance fraud annually in the US? - correct answer ✔✔80 billion dollars a
year
What are the two types of agent fraud? - correct answer ✔✔Delaying the Payment and Holding
the Payment
What are the characteristics of Conformists? - correct answer ✔✔• 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
What are the characteristics of Realists? - correct answer ✔✔• Tolerate insurance fraud to a low
extent
• Believe some behaviors are justified
In what year did Wisconsin become the first state to enact a Worker's Compensation law to
stand up to constitutional laws? - correct answer ✔✔1911
When did every other state enact a Workers Compensation law? - correct answer ✔✔1948
What was the Fellow Servant Law? - correct answer ✔✔Defense used when co-worker was
involved. It asserted that the co-worker was involved with the injury and the employer was not
liable.
What was the assumption of risk The Assumption of Risk? - correct answer ✔✔Defense that
stated employee was aware of risk when they took the position, the employer was not liable.
What was Contributory Negligence? - correct answer ✔✔Asserted that employee was careless
or played a part in the injury, employee not liable.
What is the Choice of Law Provision? - correct answer ✔✔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.
What can happen if an employer doesn't have liability coverage? - correct answer
✔✔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.
What does employers' liability insurance not cover? - correct answer ✔✔Any type of
discrimination claims such as: age, racial, sexual etc.
, What are the characteristics of a hard market? - correct answer ✔✔higher rates, less
negotiation, carriers greater leverage, stricter underwriting practices, and lower coverage limits
How long does a hard market typically last? - correct answer ✔✔3-5 years, usually shorter than
soft market
What are the characteristics of a soft market? - correct answer ✔✔lower rates, more
negotiation, employer has greater leverage, not as tough underwriting practices, and higher
policy limits, loss control is important
How long does a soft market last? - correct answer ✔✔6-8 years
What is the cost of insurance fraud annually in the US? - correct answer ✔✔80 billion dollars a
year
What are the two types of agent fraud? - correct answer ✔✔Delaying the Payment and Holding
the Payment
What are the characteristics of Conformists? - correct answer ✔✔• 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
What are the characteristics of Realists? - correct answer ✔✔• Tolerate insurance fraud to a low
extent
• Believe some behaviors are justified
