Workers' Compensation and Crime Coverage Flashcard

Front

What type of state is Noah operating in if employers can only purchase workers' compensation insurance from the state fund?

Back

A state where insurance is available only through the state fund

Answer explanation

Noah is in a state where workers' compensation insurance can only be purchased from the state fund, making the correct choice 'A state where insurance is available only through the state fund'.

Front

Which part of the standard workers' compensation policy provides liability insurance for a work-related injury not covered by workers' compensation? Options: Part One – Workers’ Compensation, Part Two – Employers Liability, Part Three – Other States Insurance, Part Four – Your Duties if Injury Occurs.

Back

Part Two – Employers Liability

Answer explanation

Part Two – Employers Liability provides coverage for work-related injuries not covered by workers' compensation, protecting Arjun's company from potential lawsuits related to the employee's injury.

Front

What is the purpose of the Secondary Injury Fund when a worker becomes totally and permanently disabled due to a workplace accident?

Back

To make benefit payments to totally and permanently disabled workers

Answer explanation

The purpose of the Secondary Injury Fund is to make benefit payments to totally and permanently disabled workers like Noah, ensuring they receive financial support after a workplace accident.

Front

What does Charlotte need to self-insure her workers' compensation insurance?

Back

Approval from the state and proof of funds to cover claims

Answer explanation

To self-insure workers' compensation, Charlotte needs approval from the state and must prove she has sufficient funds to cover potential claims, ensuring financial responsibility.

Front

Aiden works at a manufacturing plant. Which situation would NOT be covered by workers' compensation insurance?

• Injuries Aiden sustains while performing assigned duties
• Injuries Aiden sustains while performing assigned duties off-premises
• Injuries Aiden sustains during lunch or break times
• Injuries Aiden sustains on the employer's premises

Back

Injuries Aiden sustains during lunch or break times

Answer explanation

Workers' compensation typically does not cover injuries sustained during lunch or break times, as these are considered personal time, unlike injuries incurred while performing job duties.

Front

What does Part Three – Other States Insurance allow James to do?

Back

Specify coverage in additional states in the future

Answer explanation

Part Three – Other States Insurance allows James to specify coverage in additional states in the future, ensuring his workers' compensation policy adapts as his business expands.

Front

Minimum policy limit per accident for employers liability insurance for a small construction company.

Back

$100,000

Answer explanation

The minimum policy limit for employers liability insurance is typically $100,000 per accident. This ensures adequate coverage for potential claims, making it the correct choice for Daniel's construction company.

Front

What is the role of fidelity bonds in the context of a small business concerned about potential financial losses due to employee actions?

Back

To protect against employee dishonesty

Answer explanation

Fidelity bonds specifically protect businesses from losses due to employee dishonesty, such as theft or fraud. This makes them essential for Charlotte's concern about potential financial losses from employee actions.

Front

Coverage to protect a jewelry store from loss due to a break-in and threat to a security guard.

Back

Robbery Coverage

Answer explanation

Robbery Coverage protects against losses from theft involving force or intimidation, as in this case where the security guard was threatened. This is the correct coverage for Arjun's jewelry store loss.

Front

What information is included in the General Section of a company's workers' compensation policy?

Back

Definitions and conditions that apply to the policy

Answer explanation

In the General Section of a workers' compensation policy, Emma will find definitions and conditions that apply to the policy, which are essential for understanding the coverage and terms.