CISR Commercial Casualty II: Questions With Detailed
Solutions
State workers compensation laws are no-fault systems. T/F Right Ans -
True
Employer purchase of workers compensation insurance is voluntary in all
state but Texas and New Jersey. T/F Right Ans - False; With the exception
of Texas and new Jersey, all states have made employer purchase of workers
compensation insurance mandatory.
One advantage of workers compensation to employers is predictable costs.
T/F Right Ans - True
List 4 states that have monopolistic funds. Right Ans - North Dakota, Ohio,
Wyoming, Washington
List 2 states where workers compensation is elective for employers. Right
Ans - 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.
Right Ans - 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? Right Ans - The
experience modifier reflects employers claims experience, that is, the
frequency and severity, or cost, of claims. The experience modifier is used to
calculate an employers premium.
What information does the General Section A provide in a WC policy? Right
Ans - Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? Right
Ans - Clarifies who in insured
, What information does the General Section C provide in a WC policy? Right
Ans - Describes workers compensation law
What information does the General Section D provide in a WC policy? Right
Ans - Explains in which states coverage applies
What information does the General Section E in a WC policy? Right Ans -
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. Right Ans - Paragraph C does not focus on federal
workers or federal workers compensation laws.
What is the correct compensation category for the following benefit:
Reasonable and necessary treatment for an injury Right Ans - Medical
What is the correct compensation category for the following benefit:
Compensation for types or permanent injury Right Ans - Disability
What is the correct compensation category for the following benefit:
Compensation for lost wages Right Ans - Disability
What is the correct compensation category for the following benefit: Financial
support for beneficiaries Right Ans - Death
What is the correct compensation category for the following benefit:
Restoration of an employee's physical capacity Right Ans - Rehabilitation
What are the medical and disability benefits that are associated with workers
comp based on? What are their time limits? Right Ans - 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. Right Ans - Following the workers compensation law that
applies, paragraph B expresses the insurer's promise to pay required benefits
promptly.
Solutions
State workers compensation laws are no-fault systems. T/F Right Ans -
True
Employer purchase of workers compensation insurance is voluntary in all
state but Texas and New Jersey. T/F Right Ans - False; With the exception
of Texas and new Jersey, all states have made employer purchase of workers
compensation insurance mandatory.
One advantage of workers compensation to employers is predictable costs.
T/F Right Ans - True
List 4 states that have monopolistic funds. Right Ans - North Dakota, Ohio,
Wyoming, Washington
List 2 states where workers compensation is elective for employers. Right
Ans - 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.
Right Ans - 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? Right Ans - The
experience modifier reflects employers claims experience, that is, the
frequency and severity, or cost, of claims. The experience modifier is used to
calculate an employers premium.
What information does the General Section A provide in a WC policy? Right
Ans - Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? Right
Ans - Clarifies who in insured
, What information does the General Section C provide in a WC policy? Right
Ans - Describes workers compensation law
What information does the General Section D provide in a WC policy? Right
Ans - Explains in which states coverage applies
What information does the General Section E in a WC policy? Right Ans -
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. Right Ans - Paragraph C does not focus on federal
workers or federal workers compensation laws.
What is the correct compensation category for the following benefit:
Reasonable and necessary treatment for an injury Right Ans - Medical
What is the correct compensation category for the following benefit:
Compensation for types or permanent injury Right Ans - Disability
What is the correct compensation category for the following benefit:
Compensation for lost wages Right Ans - Disability
What is the correct compensation category for the following benefit: Financial
support for beneficiaries Right Ans - Death
What is the correct compensation category for the following benefit:
Restoration of an employee's physical capacity Right Ans - Rehabilitation
What are the medical and disability benefits that are associated with workers
comp based on? What are their time limits? Right Ans - 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. Right Ans - Following the workers compensation law that
applies, paragraph B expresses the insurer's promise to pay required benefits
promptly.
