CISR Commercial Casualty 2 Exam: Questions With
Verified Solutions
T/F Workers comp laws are a no-fault system? Right Ans - True, it doesn't
matter who was at fault in a WC claim
Which states are WC insurance not mandatory? Right Ans - Texas
New Jersey
What is a monopolistic state fund? Right Ans - Where the state owns and
operates their own WC insurance facility
What are the 4 states that are monopolistic states? Right Ans - North
Dakota
Ohio
Washington
Wyoming
What are Employee advantages of WC policy? Right Ans - Defined benefits
if injured on the job
Benefits regardless of negligence
Some benefits last a lifetime
What are Employer advantages of WC policy? Right Ans - No lawsuits from
injured employees
Cost of insurance is predictable
tangible benefit to employees
There are 4 items on the Information Page of a WC policy. What does each
section show? Right Ans - Item 1 - Employers type of business, name, and
address
Item 2 - Policy period
Item 3 - WC coverage, EL coverage, endorsements, States business is
conducted, and states where insured does not operate
Item 4 - Premium calculations
What's is the difference between Item 3A and 3C of the information page of a
WC policy? Right Ans - 3A shows the state the insured has operations in
, 3C lists all states the insured does not have operations in
What is an experience modifier and what is its purpose? Right Ans - It
reflects the employers claim experience, including the Frequency and cost of
claims. If it is over 1, there have been higher claims, if it is less than 1, there
have been fewer claims. This is used to calculate an employers premium
The WC policy has 5 general sections in it's entirety. These sections are A-E.
Briefly list what each section is for. Right Ans - A - Explains the policies role
as an insurance contract and how it applies
B - Clarifies who is an insured
C - Described workers compensation law
D - Explains in which states coverage applies
E - Identifies workplace locations where coverage applies
There are 3 main parts we discussed about a WC/EL policy. What are they?
Right Ans - WC Insurance
EL Insurance
Other States Insurance
There are 4 different types of WC benefits in a claim. What are they? Right
Ans - Medical - Reasonable and necessary injury treatment with no time limit
Disability - Compensation for permanent injury and for lost wages, limited to
the extent of the disability
Rehabilitation - Restoration of an employee's physical capacity
Death - Financial support for beneficiaries
Part 1/3 of the WC policy - WC Insurance. It has 8 paragraphs A-H. What are
these paragraphs describing? Right Ans - A - How the insurance applies
(injury by accident or disease)
B - We will pay in accordance with WC law
C - We will defend in case of a suit
D - We will also pay additional costs
E - Other insurance, carrier won't pay more than their share
F - Payments you must make (compliance failure, knowingly violating laws,
etc.)
G - Recovery from others
H - Statutory provisions
Verified Solutions
T/F Workers comp laws are a no-fault system? Right Ans - True, it doesn't
matter who was at fault in a WC claim
Which states are WC insurance not mandatory? Right Ans - Texas
New Jersey
What is a monopolistic state fund? Right Ans - Where the state owns and
operates their own WC insurance facility
What are the 4 states that are monopolistic states? Right Ans - North
Dakota
Ohio
Washington
Wyoming
What are Employee advantages of WC policy? Right Ans - Defined benefits
if injured on the job
Benefits regardless of negligence
Some benefits last a lifetime
What are Employer advantages of WC policy? Right Ans - No lawsuits from
injured employees
Cost of insurance is predictable
tangible benefit to employees
There are 4 items on the Information Page of a WC policy. What does each
section show? Right Ans - Item 1 - Employers type of business, name, and
address
Item 2 - Policy period
Item 3 - WC coverage, EL coverage, endorsements, States business is
conducted, and states where insured does not operate
Item 4 - Premium calculations
What's is the difference between Item 3A and 3C of the information page of a
WC policy? Right Ans - 3A shows the state the insured has operations in
, 3C lists all states the insured does not have operations in
What is an experience modifier and what is its purpose? Right Ans - It
reflects the employers claim experience, including the Frequency and cost of
claims. If it is over 1, there have been higher claims, if it is less than 1, there
have been fewer claims. This is used to calculate an employers premium
The WC policy has 5 general sections in it's entirety. These sections are A-E.
Briefly list what each section is for. Right Ans - A - Explains the policies role
as an insurance contract and how it applies
B - Clarifies who is an insured
C - Described workers compensation law
D - Explains in which states coverage applies
E - Identifies workplace locations where coverage applies
There are 3 main parts we discussed about a WC/EL policy. What are they?
Right Ans - WC Insurance
EL Insurance
Other States Insurance
There are 4 different types of WC benefits in a claim. What are they? Right
Ans - Medical - Reasonable and necessary injury treatment with no time limit
Disability - Compensation for permanent injury and for lost wages, limited to
the extent of the disability
Rehabilitation - Restoration of an employee's physical capacity
Death - Financial support for beneficiaries
Part 1/3 of the WC policy - WC Insurance. It has 8 paragraphs A-H. What are
these paragraphs describing? Right Ans - A - How the insurance applies
(injury by accident or disease)
B - We will pay in accordance with WC law
C - We will defend in case of a suit
D - We will also pay additional costs
E - Other insurance, carrier won't pay more than their share
F - Payments you must make (compliance failure, knowingly violating laws,
etc.)
G - Recovery from others
H - Statutory provisions
