CISR COMMERCIAL CASUALTY II QUESTIONS
AND ANSWERS
State worker’s compensation laws are no-fault systems. T/F - CORRECT ANSWER-
True
Employer purchase of worker’s compensation insurance is voluntary in all state but
Texas and New Jersey. T/F - CORRECT ANSWER-False; With the exception of Texas
and new Jersey, all states have made employer purchase of worker’s compensation
insurance mandatory.
One advantage of worker’s compensation to employers is predictable costs. T/F -
CORRECT ANSWER-True
List 4 states that have monopolistic funds. - CORRECT ANSWER-North Dakota, Ohio,
Wyoming, Washington
List 2 states where worker’s compensation is elective for employers. - CORRECT
ANSWER-Texas and New Jersey
Both item 3A and item 3C of the information pages of a WC policy list the states the
policy covers. Explain the difference between these two items. - CORRECT ANSWER-
3A triggers WC insurance for the state or state listed in which the policyholder currently
has ongoing business. 3C lists all of other states except those listed in 3A and
monopolistic states that the policyholder may conduct business during the policy term.
What is the experience modifier, and what is its purpose? - CORRECT ANSWER-The
experience modifier reflects employer’s claims experience, that is, the frequency and
severity, or cost, of claims. The experience modifier is used to calculate an employer’s
premium.
What information does the General Section A provide in a WC policy? - CORRECT
ANSWER-Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? - CORRECT
ANSWER-Clarifies who in insured
What information does the General Section C provide in a WC policy? - CORRECT
ANSWER-Describes worker’s compensation law
, What information does the General Section D provide in a WC policy? - CORRECT
ANSWER-Explains in which states coverage applies
What information does the General Section E in a WC policy? - CORRECT ANSWER-
Explains in which states coverage applies and identifies workplace locations where
coverage applies
Explain what Paragraph C in the General Section of the WC and EL insurance policy
does not apply to. - CORRECT ANSWER-Paragraph C does not focus on federal
workers or federal worker’s compensation laws.
What is the correct compensation category for the following benefit: Reasonable and
necessary treatment for an injury - CORRECT ANSWER-Medical?
What is the correct compensation category for the following benefit: Compensation for
types or permanent injury - CORRECT ANSWER-Disability?
What is the correct compensation category for the following benefit: Compensation for
lost wages - CORRECT ANSWER-Disability?
What is the correct compensation category for the following benefit: Financial support
for beneficiaries - CORRECT ANSWER-Death?
What is the correct compensation category for the following benefit: Restoration of an
employee's physical capacity - CORRECT ANSWER-Rehabilitation?
What are the medical and disability benefits that are associated with worker’s comp
based on? What are their time limits? - CORRECT ANSWER-WC would pay medical
costs for all reasonable injuries, with no time limits. 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 WC and EL insurance policy.
- CORRECT ANSWER-Following the worker’s compensation law that applies,
paragraph B expresses the insurer's promise to pay required benefits promptly.
What type of employer’s liability claim applies to the following scenario: Some key
safety rules are being ignored at Company XYZ- the insured? A company employee is
fatally injured in a job-site accident. The employee's widow and children sue the
employer for loss of the care and companionship of their husband and father -
CORRECT ANSWER-Care and Loss of Services Claim
AND ANSWERS
State worker’s compensation laws are no-fault systems. T/F - CORRECT ANSWER-
True
Employer purchase of worker’s compensation insurance is voluntary in all state but
Texas and New Jersey. T/F - CORRECT ANSWER-False; With the exception of Texas
and new Jersey, all states have made employer purchase of worker’s compensation
insurance mandatory.
One advantage of worker’s compensation to employers is predictable costs. T/F -
CORRECT ANSWER-True
List 4 states that have monopolistic funds. - CORRECT ANSWER-North Dakota, Ohio,
Wyoming, Washington
List 2 states where worker’s compensation is elective for employers. - CORRECT
ANSWER-Texas and New Jersey
Both item 3A and item 3C of the information pages of a WC policy list the states the
policy covers. Explain the difference between these two items. - CORRECT ANSWER-
3A triggers WC insurance for the state or state listed in which the policyholder currently
has ongoing business. 3C lists all of other states except those listed in 3A and
monopolistic states that the policyholder may conduct business during the policy term.
What is the experience modifier, and what is its purpose? - CORRECT ANSWER-The
experience modifier reflects employer’s claims experience, that is, the frequency and
severity, or cost, of claims. The experience modifier is used to calculate an employer’s
premium.
What information does the General Section A provide in a WC policy? - CORRECT
ANSWER-Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? - CORRECT
ANSWER-Clarifies who in insured
What information does the General Section C provide in a WC policy? - CORRECT
ANSWER-Describes worker’s compensation law
, What information does the General Section D provide in a WC policy? - CORRECT
ANSWER-Explains in which states coverage applies
What information does the General Section E in a WC policy? - CORRECT ANSWER-
Explains in which states coverage applies and identifies workplace locations where
coverage applies
Explain what Paragraph C in the General Section of the WC and EL insurance policy
does not apply to. - CORRECT ANSWER-Paragraph C does not focus on federal
workers or federal worker’s compensation laws.
What is the correct compensation category for the following benefit: Reasonable and
necessary treatment for an injury - CORRECT ANSWER-Medical?
What is the correct compensation category for the following benefit: Compensation for
types or permanent injury - CORRECT ANSWER-Disability?
What is the correct compensation category for the following benefit: Compensation for
lost wages - CORRECT ANSWER-Disability?
What is the correct compensation category for the following benefit: Financial support
for beneficiaries - CORRECT ANSWER-Death?
What is the correct compensation category for the following benefit: Restoration of an
employee's physical capacity - CORRECT ANSWER-Rehabilitation?
What are the medical and disability benefits that are associated with worker’s comp
based on? What are their time limits? - CORRECT ANSWER-WC would pay medical
costs for all reasonable injuries, with no time limits. 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 WC and EL insurance policy.
- CORRECT ANSWER-Following the worker’s compensation law that applies,
paragraph B expresses the insurer's promise to pay required benefits promptly.
What type of employer’s liability claim applies to the following scenario: Some key
safety rules are being ignored at Company XYZ- the insured? A company employee is
fatally injured in a job-site accident. The employee's widow and children sue the
employer for loss of the care and companionship of their husband and father -
CORRECT ANSWER-Care and Loss of Services Claim
