Vermont Workers' Compensation Exam 2026 | Practice
Questions & Verified Answers | Comprehensive Vermont
Workers' Compensation Review
1. Describe the significance of timely notification to the insurance company
regarding workplace accidents under Vermont's workers compensation
laws.
Timely notification is only necessary for serious injuries.
Timely notification ensures that the insurance company can
process claims and provide benefits efficiently.
Timely notification only affects the employer's liability.
Timely notification is irrelevant to the claims process.
2. The premium charged for a standard worker's compensation policy is
based primarily on a company's:
Payroll
Federal Tax
Gross Sales
3. How long must a licensee keep records of insurance transactions on file,
available for inspection by the Director?
6 months
1 year
5 years
90 days
4. Which of the following is the most important factor in deciding whether
a person is an employee or an independent contractor?
, The degree of control the employer has over the individual's
work
Whether the person works during the week or on weekends
Whether the person has high-level skills or low-level skills
Whether the person has his or her own tools or has to use the
employer's tools
5. If an employee is injured while operating faulty machinery and files a
lawsuit for loss of consortium, what type of insurance should the
employer rely on to cover potential legal costs?
Employers Liability coverage
Workers Compensation coverage
Health Insurance coverage
General Liability coverage
6. Describe the types of benefits that workers' compensation laws
generally provide to employees who sustain injuries at work.
Workers' compensation laws only cover pain and suffering
damages.
Workers' compensation laws generally provide medical
expenses, with certain limits, and compensation for disability or
loss of wages.
Workers' compensation laws provide unlimited medical expenses
and pain and suffering damages.
Workers' compensation laws provide only disability benefits.
7. If a contractor begins work in a new state with different workers
compensation laws, what steps should they take to ensure compliance
and coverage?
, The contractor should review the workers compensation laws
of the new state and adjust their insurance policy accordingly.
The contractor should only inform their employees about the
new state laws.
The contractor should ignore the new state's laws as they are not
applicable.
The contractor can continue using their existing policy without
changes.
8. Before implementation of workers' compensation laws in the United
States, employees were seldom paid for work-related injuries. The
injured employee's ability to recover damages was hindered by the fact
that even a negligent employer could use three common law defenses
to disavow liability for workers' injuries. Which of the following is a
common law defense?
Fellow-servant rule
Unforeseeable Misuse
Attractive nuisance
Proximate cause
Concurrent negligence
9. Describe how premiums in a workers compensation policy are
determined.
Premiums are determined by the state government without
regard to the employer's specifics.
Premiums are fixed and do not change regardless of the
employer's circumstances.
Premiums are determined based on the employer's payroll, the
type of industry, and the claims history.
, Premiums are solely based on the number of employees in the
company.
10. What is one requirement for an applicant to qualify for a nonresident
adjuster license in Vermont?
Has completed a training course in Vermont
Has no prior license violations
Is employed by a Vermont insurance company
Holds a resident license in his or her home state
11. What is one criterion that can classify a worker as an employee in
Vermont?
The employer has the right to control the way the work is done
The worker sets their own hours
The worker provides their own tools
The worker is paid on a commission basis
12. Which types of benefits are typically included in workers' compensation
laws across states for injured workers?
Medical expenses, with certain limits and disability/loss of
wages
Medical expenses without limits only
Pain and suffering damages only
Disability/loss of wages and pain and suffering damages
13. At what age will the child of an employee who died due to a work-
related injury no longer be eligible to receive benefits from Workers'
Compensation?
Questions & Verified Answers | Comprehensive Vermont
Workers' Compensation Review
1. Describe the significance of timely notification to the insurance company
regarding workplace accidents under Vermont's workers compensation
laws.
Timely notification is only necessary for serious injuries.
Timely notification ensures that the insurance company can
process claims and provide benefits efficiently.
Timely notification only affects the employer's liability.
Timely notification is irrelevant to the claims process.
2. The premium charged for a standard worker's compensation policy is
based primarily on a company's:
Payroll
Federal Tax
Gross Sales
3. How long must a licensee keep records of insurance transactions on file,
available for inspection by the Director?
6 months
1 year
5 years
90 days
4. Which of the following is the most important factor in deciding whether
a person is an employee or an independent contractor?
, The degree of control the employer has over the individual's
work
Whether the person works during the week or on weekends
Whether the person has high-level skills or low-level skills
Whether the person has his or her own tools or has to use the
employer's tools
5. If an employee is injured while operating faulty machinery and files a
lawsuit for loss of consortium, what type of insurance should the
employer rely on to cover potential legal costs?
Employers Liability coverage
Workers Compensation coverage
Health Insurance coverage
General Liability coverage
6. Describe the types of benefits that workers' compensation laws
generally provide to employees who sustain injuries at work.
Workers' compensation laws only cover pain and suffering
damages.
Workers' compensation laws generally provide medical
expenses, with certain limits, and compensation for disability or
loss of wages.
Workers' compensation laws provide unlimited medical expenses
and pain and suffering damages.
Workers' compensation laws provide only disability benefits.
7. If a contractor begins work in a new state with different workers
compensation laws, what steps should they take to ensure compliance
and coverage?
, The contractor should review the workers compensation laws
of the new state and adjust their insurance policy accordingly.
The contractor should only inform their employees about the
new state laws.
The contractor should ignore the new state's laws as they are not
applicable.
The contractor can continue using their existing policy without
changes.
8. Before implementation of workers' compensation laws in the United
States, employees were seldom paid for work-related injuries. The
injured employee's ability to recover damages was hindered by the fact
that even a negligent employer could use three common law defenses
to disavow liability for workers' injuries. Which of the following is a
common law defense?
Fellow-servant rule
Unforeseeable Misuse
Attractive nuisance
Proximate cause
Concurrent negligence
9. Describe how premiums in a workers compensation policy are
determined.
Premiums are determined by the state government without
regard to the employer's specifics.
Premiums are fixed and do not change regardless of the
employer's circumstances.
Premiums are determined based on the employer's payroll, the
type of industry, and the claims history.
, Premiums are solely based on the number of employees in the
company.
10. What is one requirement for an applicant to qualify for a nonresident
adjuster license in Vermont?
Has completed a training course in Vermont
Has no prior license violations
Is employed by a Vermont insurance company
Holds a resident license in his or her home state
11. What is one criterion that can classify a worker as an employee in
Vermont?
The employer has the right to control the way the work is done
The worker sets their own hours
The worker provides their own tools
The worker is paid on a commission basis
12. Which types of benefits are typically included in workers' compensation
laws across states for injured workers?
Medical expenses, with certain limits and disability/loss of
wages
Medical expenses without limits only
Pain and suffering damages only
Disability/loss of wages and pain and suffering damages
13. At what age will the child of an employee who died due to a work-
related injury no longer be eligible to receive benefits from Workers'
Compensation?
