Chapter 18: Workers Compensation

1. Which one of the following injuries qualifies as a compensable injury under workers compensation laws?

A factory worker fractures her arm while working overtime on the assembly line.

A hotel maid falls down the stairs while cleaning her own home.

A secretary accidentally swallows his gum while in the company lunchroom and chokes when it gets lodged in his windpipe.

An office manager is injured in a traffic accident on his way to work.

A is correct. Work-related injuries must arise out of employment and arise in the course of employment to be compensable. Time, place, and circumstances are all considered in making this determination.

Explanation

A is correct. Work-related injuries must arise out of employment and arise in the course of employment to be compensable. Time, place, and circumstances are all considered in making this determination.

2. Chapter 18George is a trash collector earning $35,000 a year who hurts his back on the job, so he can no longer go out with the collection trucks. However, he can still be a route coordinator in the office at a salary of $25,000 per year. To what extent is George industrially disabled?

$35,000 per year

$25,000 per year

$10,000 per year

$0 per year

C is correct. Industrially disability measures the earnings an injured worker had before and after the injury. George's industrial disability is found by subtracting his route coordinator earnings of $25,000 from his trash collector earnings of $35,000.

Explanation

C is correct. Industrially disability measures the earnings an injured worker had before and after the injury. George's industrial disability is found by subtracting his route coordinator earnings of $25,000 from his trash collector earnings of $35,000.

3. Which of the following benefits are paid under workers compensation laws?

Medical

Rehabilitation

Disability income

Pain and suffering

A, B, and C are correct. Workers compensation laws pay benefits in four categories: disability/loss of income benefits, medical benefits, survivor/death benefits, and rehabilitation benefits. They do not pay benefits for pain and suffering.

Explanation

A, B, and C are correct. Workers compensation laws pay benefits in four categories: disability/loss of income benefits, medical benefits, survivor/death benefits, and rehabilitation benefits. They do not pay benefits for pain and suffering.

Submit

4. Under which part of a Workers Compensation and Employers Liability policy would you find a description of employers liability coverage provided?

Part One

Part Two

Part Three

Part Four

B is correct. Part One describes the Workers Compensation coverage, and Part Two describes the Employers Liability coverage. Part Three is Other States Insurance, and Part Four describes the insured's duties upon a loss.

Explanation

B is correct. Part One describes the Workers Compensation coverage, and Part Two describes the Employers Liability coverage. Part Three is Other States Insurance, and Part Four describes the insured's duties upon a loss.

5. In most states, workers compensation laws apply to which of the following?

Only to workers in occupations that are considered extremely hazardous

To most workers except those specifically excluded by law

To full-time workers only

To all workers

B is correct. Every state has some exempt classifications, but the majority of the nation's employees are covered under workers compensation laws.

Explanation

B is correct. Every state has some exempt classifications, but the majority of the nation's employees are covered under workers compensation laws.

6. Under which part of a Workers Compensation and Employers Liability policy would you find a description of the insured's obligations when an injury occurs?

Part One

Part Two

Part Three

Part Four

D is correct. Part Four describes the insured's duties when a worker is injured. Part One describes the general terms of the workers compensation policy. Part Two is Employers Liability Insurance. Part Three is Other States Insurance.

Explanation

D is correct. Part Four describes the insured's duties when a worker is injured. Part One describes the general terms of the workers compensation policy. Part Two is Employers Liability Insurance. Part Three is Other States Insurance.