Question 1

When the employer is classified by type, which one of the following methods is used to determine the premium rate?&#10;A) Schedule rating&#10;B) Experience rating&#10;C) Manual rating&#10;D) Retrospective rating

Accepted Answer

B

Question 2

The following are all approaches used to settle a workers' compensation claim except:&#10;A) Direct settlement&#10;B) Union arbitration&#10;C) Public hearing&#10;D) Agreement settlement

Accepted Answer

Union arbitration is not a commonly used approach to settling workers' compensation claims. The other options, direct settlement, public hearing, and agreement settlement, are commonly used methods for resolving such claims.

Question 3

A person who accepts a service contract to perform a specific task is considered an employee of the company.

Accepted Answer

A person who accepts a service contract is considered an independent contractor, not an employee. The terms of the contract should clearly define the relationship between the contractor and the company.

Question 4

There are no serious problems with workers' compensation in the United States.

Accepted Answer

While workers' compensation provides benefits to employees who are injured or become ill due to their job, there are several issues with the system. These include delays in receiving benefits, denials of valid claims, insufficient compensation for lost wages or medical expenses, and potential fraud and abuse by both employees and employers. Additionally, some states have outdated laws that do not adequately protect workers or adequately address workplace injuries and illnesses.

Question 5

All employees are covered under the workers' compensation laws except which one of the following?&#10;A) Industry employees&#10;B) Government employees&#10;C) Agricultural employees&#10;D) Service employees

Accepted Answer

Agricultural employees are typically exempt from workers' compensation laws in many states. However, industry, government, and service employees are generally covered by these laws.

Question 6

Today, all fifty states, the District of Columbia, Guam, and Puerto Rico have workers' compensation laws.

Accepted Answer

All fifty states, the District of Columbia, Guam, and Puerto Rico have workers' compensation laws.

Question 7

All workers are covered under the workers' compensation laws.

Accepted Answer

Workers' compensation laws vary by state and country, and not all workers are covered. For example, independent contractors, volunteers, and sometimes agricultural workers may not be covered under some workers' compensation statutes.

Question 8

Permanent partial disability is the condition that exists when an injured employee is not expected to recover fully.

Accepted Answer

Permanent partial disability refers to a situation where an injured employee is not expected to fully recover from their injury.

Question 9

Which of the following statements are problems with workers' compensation?&#10;A) Lost income not adequately replaced&#10;B) Number of accidents not decreased&#10;C) Effectiveness of cost allocation&#10;D) All of the above

Accepted Answer

All of the statements are problems with workers' compensation. Lost income not adequately replaced is a problem because injured workers may receive only a portion of their usual income, which can cause financial hardship. Number of accidents not decreased is a problem because employers may not have incentives to create safe working conditions if they know they will not bear the full cost of workplace accidents. Effectiveness of cost allocation is a problem because the costs of workplace accidents may not be allocated fairly between employers and workers, or between high-risk and low-risk industries, causing some groups to pay more or less than their fair share.

Question 10

Workers' compensation was developed to allow injured employees to be compensated without the need for litigation.

Accepted Answer

Workers' compensation is a system that provides benefits to employees who are injured or become ill as a result of their job, without the need for litigation. It is designed to ensure that workers receive medical treatment and other forms of compensation in a timely and efficient manner, while also protecting employers from costly lawsuits.

Question 11

Insurance rates are affected by all the factors listed below except which of the following?&#10;A) Profit/loss of the company&#10;B) Types of work performed&#10;C) Potential future losses&#10;D) Number of employees

Accepted Answer

The answer of Insurance rates are affected by all the...

Question 12

Workers' compensation laws are uniform from state to state.

Accepted Answer

The answer of Workers' compensation laws are uniform from state...

Question 13

If employers go out of business, they are not liable to injured employees.

Accepted Answer

The answer of If employers go out of business, they...

Question 14

Workers may not bypass the workers' compensation system and sue even if the employer has been reckless.

Accepted Answer

The answer of Workers may not bypass the workers' compensation...

Question 15

Temporary disability is the state that exists when it is probable that an injured employee will be able to resume employment.

Accepted Answer

The answer of Temporary disability is the state that exists...

Question 16

Workers' compensation applies when an injury can be categorized as arising out of employment or occurring in the course of employment.

Accepted Answer

The answer of Workers' compensation applies when an injury can...

Deck 6: Workers Compensation