VERMONT ADJUSTER'S
EXAMINATION FOR WORKERS'
COMPENSATION INSURANCE (2026
SERIES): PRACTICE QUESTIONS &
ANSWERS
General & Foundational Principles
1. Under Vermont workers’ compensation law, an injury is
compensable only if it:
A) Occurs outside the workplace.
B) Arises out of and in the course of employment.
C) Is reported within 30 days.
D) Results in permanent disability.
Answer: B) Arises out of and in the course of employment.
Rationale: Vermont law requires that the injury both arise out of
employment and occur during the course of employment to
qualify for workers’ compensation benefits.
2. Which benefit covers all necessary medical treatment related to
a workplace injury?
A) Temporary disability benefit.
B) Vocational rehabilitation benefit.
C) Medical benefit.
D) Wage replacement benefit.
,Answer: C) Medical benefit.
Rationale: Medical benefits pay for reasonable and necessary
treatment related to a workplace injury, including hospital care,
physician visits, and rehabilitation.
3. Which principle distinguishes workers’ compensation from
traditional tort law?
A) Fault-based liability.
B) No-fault coverage.
C) Strict liability only.
D) Requirement of negligence proof.
Answer: B) No-fault coverage.
Rationale: Workers’ compensation operates on a no-fault basis,
meaning benefits are provided regardless of fault, unlike tort law
which requires proof of negligence.
4. In Vermont workers’ compensation, who is considered a
statutory employee?
A) Independent contractors.
B) Temporary workers under a staffing agency.
C) Certain farm workers and casual laborers.
D) All self-employed individuals.
Answer: C) Certain farm workers and casual laborers.
Rationale: Statutory employees include specific categories such
as farm workers and casual laborers, who are covered under
workers’ compensation by statute.
5. What does the term “arising out of employment” primarily refer
to?
, A) The injury occurred during work hours.
B) The injury is related to the nature of the employment.
C) The injury happened on company premises.
D) The injury was caused by a third party.
Answer: B) The injury is related to the nature of the employment.
Rationale: “Arising out of employment” pertains to whether the
injury is causally related to the worker’s job duties or environment.
6. An employee is injured while working in another state but is
hired and principally employed in Vermont. Which state’s workers’
compensation law generally applies?
A) The state where the injury occurred.
B) Vermont law.
C) The state with the highest benefit level.
D) The employee may choose either state.
Answer: B) Vermont law.
Rationale: Extraterritorial coverage provisions generally provide
that the state where the employment relationship is centered
(Vermont) applies, even if the injury occurs elsewhere.
7. True or False: An aggravation or acceleration of a preexisting
condition by an employment accident or condition of work is
compensable.
A) True.
B) False.
Answer: A) True.
Rationale: An aggravation or acceleration of a preexisting
, condition caused by an employment accident is compensable
under Vermont workers’ compensation.
8. All of the following must be covered for workers’ compensation
coverage in Vermont except:
A) Maritime workers.
B) Stockbrokers.
C) Public employees.
D) Road contractor’s employees.
Answer: A) Maritime workers.
Rationale: Maritime workers are generally covered under federal
law (e.g., Longshore and Harbor Workers’ Compensation Act) and
are not required to be covered under Vermont’s workers’
compensation law.
9. Which of the following is not a common-law defense for an
employer in a workplace injury lawsuit?
A) Contributory Negligence.
B) Fellow-Servant Rule.
C) Proximate Cause.
D) Assumption of Risk.
Answer: C) Proximate Cause.
Rationale: Proximate cause is an element of negligence, not a
defense. Traditional common-law defenses include contributory
negligence, fellow-servant rule, and assumption of risk.
10. Which of the following is the least desired outcome in regard
to vocational rehabilitation?
EXAMINATION FOR WORKERS'
COMPENSATION INSURANCE (2026
SERIES): PRACTICE QUESTIONS &
ANSWERS
General & Foundational Principles
1. Under Vermont workers’ compensation law, an injury is
compensable only if it:
A) Occurs outside the workplace.
B) Arises out of and in the course of employment.
C) Is reported within 30 days.
D) Results in permanent disability.
Answer: B) Arises out of and in the course of employment.
Rationale: Vermont law requires that the injury both arise out of
employment and occur during the course of employment to
qualify for workers’ compensation benefits.
2. Which benefit covers all necessary medical treatment related to
a workplace injury?
A) Temporary disability benefit.
B) Vocational rehabilitation benefit.
C) Medical benefit.
D) Wage replacement benefit.
,Answer: C) Medical benefit.
Rationale: Medical benefits pay for reasonable and necessary
treatment related to a workplace injury, including hospital care,
physician visits, and rehabilitation.
3. Which principle distinguishes workers’ compensation from
traditional tort law?
A) Fault-based liability.
B) No-fault coverage.
C) Strict liability only.
D) Requirement of negligence proof.
Answer: B) No-fault coverage.
Rationale: Workers’ compensation operates on a no-fault basis,
meaning benefits are provided regardless of fault, unlike tort law
which requires proof of negligence.
4. In Vermont workers’ compensation, who is considered a
statutory employee?
A) Independent contractors.
B) Temporary workers under a staffing agency.
C) Certain farm workers and casual laborers.
D) All self-employed individuals.
Answer: C) Certain farm workers and casual laborers.
Rationale: Statutory employees include specific categories such
as farm workers and casual laborers, who are covered under
workers’ compensation by statute.
5. What does the term “arising out of employment” primarily refer
to?
, A) The injury occurred during work hours.
B) The injury is related to the nature of the employment.
C) The injury happened on company premises.
D) The injury was caused by a third party.
Answer: B) The injury is related to the nature of the employment.
Rationale: “Arising out of employment” pertains to whether the
injury is causally related to the worker’s job duties or environment.
6. An employee is injured while working in another state but is
hired and principally employed in Vermont. Which state’s workers’
compensation law generally applies?
A) The state where the injury occurred.
B) Vermont law.
C) The state with the highest benefit level.
D) The employee may choose either state.
Answer: B) Vermont law.
Rationale: Extraterritorial coverage provisions generally provide
that the state where the employment relationship is centered
(Vermont) applies, even if the injury occurs elsewhere.
7. True or False: An aggravation or acceleration of a preexisting
condition by an employment accident or condition of work is
compensable.
A) True.
B) False.
Answer: A) True.
Rationale: An aggravation or acceleration of a preexisting
, condition caused by an employment accident is compensable
under Vermont workers’ compensation.
8. All of the following must be covered for workers’ compensation
coverage in Vermont except:
A) Maritime workers.
B) Stockbrokers.
C) Public employees.
D) Road contractor’s employees.
Answer: A) Maritime workers.
Rationale: Maritime workers are generally covered under federal
law (e.g., Longshore and Harbor Workers’ Compensation Act) and
are not required to be covered under Vermont’s workers’
compensation law.
9. Which of the following is not a common-law defense for an
employer in a workplace injury lawsuit?
A) Contributory Negligence.
B) Fellow-Servant Rule.
C) Proximate Cause.
D) Assumption of Risk.
Answer: C) Proximate Cause.
Rationale: Proximate cause is an element of negligence, not a
defense. Traditional common-law defenses include contributory
negligence, fellow-servant rule, and assumption of risk.
10. Which of the following is the least desired outcome in regard
to vocational rehabilitation?
