ARKANSAS PROPERTY AND CASUALTY INSURANCE
EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
Before workers comp laws, employers had 3 common law defenses to avoid paying
claims- - ANSWER: Assumption of Risk - This defense placed all the risk on the
employee as being responsible for knowing the work conditions prior to
employment.
Fellow Servant Rule - Removed the employer's negligence if a fellow employee
contributed in any way to the loss.
Contributory Negligence - Used to argue that the employee was partially at fault and
therefore was not eligible to recover benefits from the employer.
Compulsory - ANSWER: In jurisdictions where Workers' Compensation benefits are
mandated by state law, employers are required to provide Workers' Compensation
benefits to their employees—either via insurance or self-insurance.
Elective - ANSWER: In jurisdictions where Workers' Compensation benefits are not
mandated by state law, employers have the choice to accept or reject state Workers'
Compensation laws. If an employer chooses to reject the Workers' Compensation
laws and an employee is injured, the employee may then file a claim or lawsuit
against the employer for injuries; and the employer is denied the use of common law
defenses, such as assumption of risk, contributory negligence, and negligence of a
fellow employee.
Monopolistic vs. Competitive - ANSWER: *Monopolistic - Workers' Compensation
insurance only available through state fund.
*Competitive - Workers' Compensation insurance available through private insurers.
Employment Covered - ANSWER: Because Workers' Compensation insurance
responds to workplace injuries, it only provides coverage if an employment
relationship exists between the employer and the injured person. An employer-
employee relationship exists if the employer:
Retains the right to direct the way work shall be completed
Supplies the necessary equipment and tools to complete the work
Determines the work hours
Determines the end results of the work to be completed
Controls the frequency and timing of compensation for work
Exempt Workers - ANSWER: Agricultural workers, such as farm and ranch laborers
Domestic employees
, Casual laborers - Those whose work is non-recurring or irregular
Independent Contractors - Plumbers, electricians, and landscapers who work under
contract for more than one employer.
Sole - Owners, Partners, and Corporate Officers
Covered injuries include those that arise out of employment. this means- - ANSWER:
The injury must occur while the employee is at work or working.
The employee is working the hours he/she is designated, or expected, to work.
The employee is performing the duties that he/she was employed to do.
The injury must arise from a risk that is reasonably related to employment.
Secondary Injury Fund - ANSWER: The Second Injury Fund pays compensation on
behalf of an employer to an employee who has already suffered a prior disabling
injury, and now sustains a subsequent injury, and the combination of the two
injuries creates a greater disability than the second injury would have created by
itself.
The employer is responsible only for compensation that would have been paid had
the second injury occurred without the existence of the prior injury, and the fund
pays the difference.
Employers liability pays all sums for which the insured is legally obligated to pay: -
ANSWER: For injuries to employees that arise out of employment, but claimed
against the insured in a capacity other than as employer
For care and loss of services
For consequential injury to dependents of an injured worker
For damages claimed by a third party as a result of a worker's injuries
Parts of a workers comp policy - ANSWER: General Section
Part One - Workers' Compensation Insurance
Part Two - Employers Liability Insurance
Part Three - Other States Insurance
Part Four - Your Duties if Injury Occurs
Part Five - Premium
Part Six - Conditions
General Section - ANSWER: The Policy - Establishes that the policy is a contract
between the employer and the insurer. The terms of the policy may not be changed
or waived, except by endorsement.
Who is Insured - Establishes that the employer is the insured.
Workers' Compensation Law - The law of each state or territory named in the
Information Page.
State - Any state in the United States, including the District of Columbia. An injured
employee is entitled to benefits provided by the state where the injury occurs
EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
Before workers comp laws, employers had 3 common law defenses to avoid paying
claims- - ANSWER: Assumption of Risk - This defense placed all the risk on the
employee as being responsible for knowing the work conditions prior to
employment.
Fellow Servant Rule - Removed the employer's negligence if a fellow employee
contributed in any way to the loss.
Contributory Negligence - Used to argue that the employee was partially at fault and
therefore was not eligible to recover benefits from the employer.
Compulsory - ANSWER: In jurisdictions where Workers' Compensation benefits are
mandated by state law, employers are required to provide Workers' Compensation
benefits to their employees—either via insurance or self-insurance.
Elective - ANSWER: In jurisdictions where Workers' Compensation benefits are not
mandated by state law, employers have the choice to accept or reject state Workers'
Compensation laws. If an employer chooses to reject the Workers' Compensation
laws and an employee is injured, the employee may then file a claim or lawsuit
against the employer for injuries; and the employer is denied the use of common law
defenses, such as assumption of risk, contributory negligence, and negligence of a
fellow employee.
Monopolistic vs. Competitive - ANSWER: *Monopolistic - Workers' Compensation
insurance only available through state fund.
*Competitive - Workers' Compensation insurance available through private insurers.
Employment Covered - ANSWER: Because Workers' Compensation insurance
responds to workplace injuries, it only provides coverage if an employment
relationship exists between the employer and the injured person. An employer-
employee relationship exists if the employer:
Retains the right to direct the way work shall be completed
Supplies the necessary equipment and tools to complete the work
Determines the work hours
Determines the end results of the work to be completed
Controls the frequency and timing of compensation for work
Exempt Workers - ANSWER: Agricultural workers, such as farm and ranch laborers
Domestic employees
, Casual laborers - Those whose work is non-recurring or irregular
Independent Contractors - Plumbers, electricians, and landscapers who work under
contract for more than one employer.
Sole - Owners, Partners, and Corporate Officers
Covered injuries include those that arise out of employment. this means- - ANSWER:
The injury must occur while the employee is at work or working.
The employee is working the hours he/she is designated, or expected, to work.
The employee is performing the duties that he/she was employed to do.
The injury must arise from a risk that is reasonably related to employment.
Secondary Injury Fund - ANSWER: The Second Injury Fund pays compensation on
behalf of an employer to an employee who has already suffered a prior disabling
injury, and now sustains a subsequent injury, and the combination of the two
injuries creates a greater disability than the second injury would have created by
itself.
The employer is responsible only for compensation that would have been paid had
the second injury occurred without the existence of the prior injury, and the fund
pays the difference.
Employers liability pays all sums for which the insured is legally obligated to pay: -
ANSWER: For injuries to employees that arise out of employment, but claimed
against the insured in a capacity other than as employer
For care and loss of services
For consequential injury to dependents of an injured worker
For damages claimed by a third party as a result of a worker's injuries
Parts of a workers comp policy - ANSWER: General Section
Part One - Workers' Compensation Insurance
Part Two - Employers Liability Insurance
Part Three - Other States Insurance
Part Four - Your Duties if Injury Occurs
Part Five - Premium
Part Six - Conditions
General Section - ANSWER: The Policy - Establishes that the policy is a contract
between the employer and the insurer. The terms of the policy may not be changed
or waived, except by endorsement.
Who is Insured - Establishes that the employer is the insured.
Workers' Compensation Law - The law of each state or territory named in the
Information Page.
State - Any state in the United States, including the District of Columbia. An injured
employee is entitled to benefits provided by the state where the injury occurs
