CISR Commercial Causality II - Section 1
Study Guide UPDATED ACTUAL Exam
Questions and CORRECT Answers
T/F: State workers compensation laws are no-fault systems. - CORRECT ANSWER -
True
T/F: Employer purchase of workers compensation insurance is voluntary in all states but Texas
and New Jersey. - CORRECT ANSWER - False (With the exception of Texas and New
Jersey, all states have made employer purchase of workers compensation insurance mandatory.)
T/F: One advantage of workers compensation to employers is predictable costs. - CORRECT
ANSWER - True
List the Monopolistic States - CORRECT ANSWER - North Dakota, Ohio, Wyoming, and
Washington
List the Elective Workers Compensation States - CORRECT ANSWER - Texas and New
Jersey
Explain the difference between items 3.A. & 3.C. under Workers Compensation - CORRECT
ANSWER - Item 3.A. triggers Workers Compensation Insurance for the state or states
listed in which the policyholder has ongoing operations. In item 3.C., all the other states in the
U.S., except those shown in item 3.A. and the monopolistic states, are shown or listed to trigger
Other States Insurance for claims that could be made in that state by employees who are there on
a temporary basis. For example, in item 3.C., a business located only in Oklahoma might have
listed: "All states except OK, ND, OH, WA, WY."
What is the experience modifier? Explain its purpose. - CORRECT ANSWER - The
experience modifier reflects employers claims experience, that is, the frequency and severity, or
cost, of claims. The experience modifier—a value that is normally more or less than 1.0—is used
to calculate an employer's premium.
, Explain what Paragraph C. in the General Section of the Workers
Compensation and Employers Liability Insurance Policy does not
apply to. - CORRECT ANSWER - Paragraph C. does not focus on federal workers or
federal workers compensation laws.
What are the medical and disability benefits that are associated
with workers compensation based on? What are their time limits? - CORRECT
ANSWER - Workers compensation would pay medical costs for all reasonable injuries,
with no time limit. Disability benefits are based on an injured employee's income and are limited
to the
extent of their disability.
Summarize the purpose of paragraph B. in Part One of the
Workers Compensation and Employers Liability
Insurance Policy. - CORRECT ANSWER - Following the workers compensation law that
applies, paragraph B. expresses the insurer's promise to pay required benefits promptly.
Which endorsement would you use to:
Cover employees who are the masters or crew of a vessel? - CORRECT ANSWER -
Maritime Coverage Endorsement
Which endorsement would you use to:
Cover employees who load or unload ships? - CORRECT ANSWER - Longshore and
Harbor Worker Coverage Endorsement (USL&H)
Which endorsement would you use to:
Cover employees who are not explicitly covered by the workers compensation law? - CORRECT
ANSWER - Voluntary Compensation Endorsement
Study Guide UPDATED ACTUAL Exam
Questions and CORRECT Answers
T/F: State workers compensation laws are no-fault systems. - CORRECT ANSWER -
True
T/F: Employer purchase of workers compensation insurance is voluntary in all states but Texas
and New Jersey. - CORRECT ANSWER - False (With the exception of Texas and New
Jersey, all states have made employer purchase of workers compensation insurance mandatory.)
T/F: One advantage of workers compensation to employers is predictable costs. - CORRECT
ANSWER - True
List the Monopolistic States - CORRECT ANSWER - North Dakota, Ohio, Wyoming, and
Washington
List the Elective Workers Compensation States - CORRECT ANSWER - Texas and New
Jersey
Explain the difference between items 3.A. & 3.C. under Workers Compensation - CORRECT
ANSWER - Item 3.A. triggers Workers Compensation Insurance for the state or states
listed in which the policyholder has ongoing operations. In item 3.C., all the other states in the
U.S., except those shown in item 3.A. and the monopolistic states, are shown or listed to trigger
Other States Insurance for claims that could be made in that state by employees who are there on
a temporary basis. For example, in item 3.C., a business located only in Oklahoma might have
listed: "All states except OK, ND, OH, WA, WY."
What is the experience modifier? Explain its purpose. - CORRECT ANSWER - The
experience modifier reflects employers claims experience, that is, the frequency and severity, or
cost, of claims. The experience modifier—a value that is normally more or less than 1.0—is used
to calculate an employer's premium.
, Explain what Paragraph C. in the General Section of the Workers
Compensation and Employers Liability Insurance Policy does not
apply to. - CORRECT ANSWER - Paragraph C. does not focus on federal workers or
federal workers compensation laws.
What are the medical and disability benefits that are associated
with workers compensation based on? What are their time limits? - CORRECT
ANSWER - Workers compensation would pay medical costs for all reasonable injuries,
with no time limit. Disability benefits are based on an injured employee's income and are limited
to the
extent of their disability.
Summarize the purpose of paragraph B. in Part One of the
Workers Compensation and Employers Liability
Insurance Policy. - CORRECT ANSWER - Following the workers compensation law that
applies, paragraph B. expresses the insurer's promise to pay required benefits promptly.
Which endorsement would you use to:
Cover employees who are the masters or crew of a vessel? - CORRECT ANSWER -
Maritime Coverage Endorsement
Which endorsement would you use to:
Cover employees who load or unload ships? - CORRECT ANSWER - Longshore and
Harbor Worker Coverage Endorsement (USL&H)
Which endorsement would you use to:
Cover employees who are not explicitly covered by the workers compensation law? - CORRECT
ANSWER - Voluntary Compensation Endorsement
