Deck 23: Unemployment and Workers Compensation Insurance

Question 1

Experience rating of the unemployment program has which of the following effects?

A)penalizes good employers that never fire employees
B)encourages short term layoffs and causes an unstable work force
C)charges employers more when the economy is weak, thus charging for poor experience when companies can least afford it
D)provides funds to continue employment instead of dismissing employees

Answer 1

C

Question 2

The major change established by the passage of workers' compensation laws was to:

A)help lawyers obtain more business
B)substitute the employer's liability without fault for the common law doctrine of negligence
C)enable the employer to effectively defend itself in a liability suit
D)bar the employee from recovery for job related injuries

Answer 2

B

Question 3

Which of the following is not an economic benefit to society of unemployment insurance?

A)provides employers a liability-free way to discharge employees without cause
B)provides spendable cash for dismissed employees
C)abates the downward spiral of the economy because of reduced spending
D)helps keep families together under hard economic times

Answer 3

A

Question 4

Which one of the following is not a concern of the risk manager with respect to workers compensation?

A)health-related costs
B)cumulative injury problems
C)the increasing frequency of litigation concerning compensation
D)the increasing use of the assumption of risk defense to deny worker's compensation claims

Question 5

Which of the following was a common law defense used by employers prior to the enactment of workers' compensation laws?

A)strict liability
B)comparative negligence
C)contributory negligence
D)stare decisis

Question 6

If a state collects unemployment taxes,then federal unemployment taxes are offset by up to:

A)50%
B)70%
C)90%
D)100%

Question 7

Choose the year closest to the enactment of unemployment insurance:

A)1929
B)1935
C)1946
D)1955

Question 8

Approximately how much was paid in unemployment benefits in a recent year?

A)$410 million
B)$41 billion
C)$41 trillion
D)$41 million

Question 9

Worker's compensation covers all of the following losses except:

A)medical expenses resulting from a job related injury
B)rehabilitation expenses resulting from a job related injury
C)lost wages during a disability that results from job related injuries
D)medical expenses resulting from an at home accident

Question 10

Government control over the money supply using interest rates to effect changes in the economy is called:

A)fiscal policy
B)monetary policy
C)tax policy
D)transfer payments

Question 11

Worker's compensation is likely to cover all the following except:

A)100 percent of lost wages during disability
B)medical expenses
C)rehabilitation expenses
D)reasonable funeral expenses

Question 12

Each of the following describes a condition under which an employee is injured on the job. Under which of these would the employer not have to provide workers' compensation benefits to the injured employee?

A)employee falls asleep on the job
B)employee is distracted by a fellow employee
C)employee was late for work
D)employee had several beers before work

Question 13

Which of the following is not a purpose of workers' compensation laws?

A)give broad coverage to employees for work related injuries
B)protect workers against lost earnings
C)protect employers against the business interruption risk
D)provide sufficient medical care for the injured worker

Question 14

Which of the following is paid for under most workers' compensation systems?

A)injuries resulting from intoxication
B)self inflicted intentional injuries
C)injuries resulting from willful failure to follow safety rules
D)injuries occurring from "horse play" on the job

Question 15

Unemployment insurance is financed by a _______________on covered wages.

A)7)65% federal tax on covered wages up to $7,000
B)6)2% federal tax on covered wages up to $7,000
C)5)4% federal tax on covered wages up to $87,000
D)6)2% state tax on covered wages up to $7,000

Question 16

Which of the following is false concerning unemployment insurance?

A)it is experienced rated
B)it originated in the Social Security Act of 1935
C)it is paid for by both the employee and employer in the form of a wage-based tax
D)it does not provide benefits to a worker who voluntarily quits a job

Question 17

Unemployment benefits are usually available in which of the following situations?

A)worker voluntarily quits to find a better job
B)worker fired for theft
C)worker is laid off when employer becomes bankrupt
D)worker is participating in a strike

Question 18

The exclusive remedy of worker's compensation law states that the:

A)compensation scheme for a work related injury is the employee's choice
B)employer can sue employees for misconduct after compensation is paid
C)employee can only collect from the worker's compensation system for work related injuries
D)worker must exclusively use the tort system to resolve liability claims against the employer

Question 19

Which of the following do not influence a workers' eligibility for,and amount of,unemployment benefits?

A)waiting period
B)earnings record
C)continuing interest in employment
D)type of work performed

Question 20

Which of the following is not a requirement for receiving unemployment benefits?

A)experience a waiting period before benefits are paid
B)have an earnings record
C)have a continuing interest in employment
D)the national unemployment percentage must exceed a certain level

Question 21

Intentionally self?inflicted injuries are usually,though not always,covered by workers' compensation insurance.

Question 22

The majority of workers' compensation coverage comes from state?operated insurance pools.

Question 23

Assumption of risk was a common defense used by employers prior to the enactment of workers' compensation laws.

Question 24

Unemployment insurance is both a state and federal program.

Question 25

Explain how a worker can be disqualified for unemployment benefits.

Question 26

All workers' compensation claims are reviewed by special courts.

Question 27

The states can finance deficits in their unemployment compensation programs with interest free loans from the federal government.

Question 28

Workers compensation insurance covers both job?related injuries and occupational diseases.

Question 29

Workers' compensation insurance today is primarily a federal,rather than a state,program.

Question 30

Explain the economic significance for the existence of unemployment insurance.

Question 31

List and explain briefly the purposes of the worker's compensation laws.

Question 32

Before worker's compensation laws,what legal defenses did employers use when they were sued by an employee injured at work? Briefly explain each of these defenses.

Question 33

From the employer's stand point,workers' compensation insurance may be seen as a substitute for other types of liability insurance.

Question 34

Which of the following statements about workers' compensation insurance is true?

A)The cost to employers has been increasing
B)The premiums have been decreasing
C)Insurers have been making high profits on this coverage
D)None of the above

Question 35

Experience rating of workers compensation insurance rewards employers with good safety records.

Question 36

When state unemployment funds are inadequate to continue paying benefits to unemployed workers,the state can:

A)declare bankruptcy
B)levy additional taxes on an ad hoc basis, but no more than 10% in one year
C)do nothing other than file a claim under any private unemployment insurance it may have purchased
D)borrow from the federal government without paying interest

Question 37

What are the general types of benefits provided under worker's compensation?

Question 38

Cumulative injuries refer to disabling illnesses that occur over time in a working career.