SOLUTIONS 2024/2025
John suffered a broken arm while working for ABC Company in California. ABC
has failed to be insured for workers compensation benefits as required under LC
3706. Which one of the following is true regarding the remedy that John has in
this case? - ANSWER-John can file a civil action against ABC in which there is a
presumption that ABC was negligent.
Which one of the following expresses when an employment relationship must
exist for an injured worker to receive workers compensation insurance under
California law? - ANSWER-At the time of injury only
California Labor Code section 3351 defines an employee as which one of the
following? - ANSWER-Every person in the service of an employer under any
appointment or contract of hire or apprenticeship, express or implied, oral or
written, whether lawfully or unlawfully employed
An injured employee in California who has been receiving workers compensation
benefits is convicted of fraud. Which one of the following is the outcome for this
employee? - ANSWER-Past and future benefits obtained as a result of the fraud
are forfeited.
Gail, who is 16 and a high school dropout residing in California, is employed
locally in a formal program to train her as a chef. She is paid for learning the job
as she does it. There is a requirement that she attend outside schooling as part of
the program. Which one of the following statements explains whether Gail is an
, employee for purposes of workers compensation? - ANSWER-She is such an
employee because she is an apprentice.
XYZ, a California company, has had a stop order issued to it by the director of
Industrial Relations along with a penalty assessment. Although no employee
claim has been filed, it has been determined that the XYZ payroll of 20 employees
for the uninsured period during the past three years was $800,000. The rate per
$100 of payroll for the governing classification for XYZ is $5.00. Which one of the
following is the likely penalty that XYZ will face? - ANSWER-$40,000
If a California Workers' Compensation Appeals Board decision is based on a
question of law, the decision is subject to independent review by which one of
the following? - ANSWER-The Court of Appeal
XYZ has recently received a stop order from the director of Industrial Relations in
California for failure to pay compensation per LC 3700. XYZ actually believed that
it did have workers compensation coverage in place and was unaware that it was
cancelled for nonpayment of premium. By now paying a premium, XYZ has been
able to obtain workers compensation coverage and have the policy predated too
before the stop order and assessment issuance. The result of any civil penalty
based on the actions of XYZ is that - ANSWER-The penalty will be enforced by the
director.
An employer self-insures its workers compensation exposure. Under California
law, this employer - ANSWER-May establish a fraud investigation unit on a
voluntary basis.
The first payment for temporary disability to an employee injured in an industrial
accident must be made by an employer no later than which one of the following
dates under California workers compensation law? - ANSWER-14 days after the
employer's knowledge of the injury and disability
Which one of the following statements about the general rules related to workers
compensation audits and the audit process is true under California workers
compensation law? - ANSWER-Successor liability may be imposed on an insurer