CPCU- 552 CHAPTER 6 WORKERS COMPENSATION AND
EMPLOYERS LIABILITY EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
What common law defense protected employers against employers' suits for
occupational injuries before the enacted workers compensation statutes?
Assumption of risk defense.
What are the specific goals of the US workers comp systems: (4)
1.) Promptly paying adequate income and medical benefits, according to a fixed and
predetermined schedule, to injured employees or their dependents regardless of fault.
2.) Eliminating the delays and costs of litigation to the employee and to society 3.)
Establishing a guarantee of benefit payment, secured by insurance 4.) Promoting
industrial safety and hygiene.
In what instances may employees still be allowed to make tort suits against their
employers for occupational injuries despite the existence of workers
compensation statutes: (4)
1.) When an employee works in a job that is not subject to workers compensation
statute, such as a domestic employer. 2.) When an employee's injuries are intentionally
caused by the employer. 3.) When an employee's injuries result from the employer's
performing in some capacity other than as an employer. 4.) When an employee fails to
provide financial security for its workers compensation obligations.
,If someone is injured severely on the job how would workers compensation
benefit them?
Compensation statutes (laws passed by legislative bodies) provide defined benefits to
employees or their dependents for occupational injuries. In this context, "occupational
injury" means either injury or disease arising out of and in the course of the injured
person's employment.
If someone is severely injured on the job, describe the problems they would have
faced before the enactment of workers compensation statutes
1.) Employees brining suit would usually be fired. 2.) Co-workers, often the only witness
to an accident, were reluctant to testify against the employer. 3.) A lawsuit could take
years to resolve. 4.) Even if employees won their suits, court awards were often
inadequate.
Statutory Employee
An independent contractor's employee who, because the independent contractor has
not maintained workers compensation insurance, is considered to be an employee of
the principal employing the independent contractor.
Why is the distinction between independent contractors and employees
important in workers compensation claims?
As a general rule, an employer's legal obligations under workers compensation laws
extend to employees only, not to independent contractors.
Under what circumstances might a principal become liable to provide workers
compensation benefits to an employee of an independent contractor hired by the
principal?
, Some workers compensation statutes hold the principal liable to provide workers
compensation benefits to an employee of an independent contractor hired by the
principal if the independent contractor does not have valid workers compensation
insurance.
What workers-compensation related precautions should an organization take
when hiring an independent contractor to perform work for an organization?
The organization should obtain certificates of insurance from the independent
contractors to make sure that the contractor has workers compensation insurance. The
organization should also maintain valid workers compensation insurance in case the
contractor does not have workers compensaition insurance when a loss actually occurs.
Who would provide temporary employees with workers compensation insurance?
Temporary employees are considered to be regular employees of the providing firm, not
of the firm using the temporary employees services. Accordingly, the providing firm is
responsible for obtaining workers compensation for these employees.
Who would provide leased employees with workers compensation insurance?
They are co-employees of the leasing contractor sometimes called a professional
employer organization (PEO), and of the client company. The PEO is responsible for all
payroll taxes, employee benefits, and workers compensation coverage.
Temporary Total Disability:
A disability caused by work-related injury or disease that temporarily renders an injured
worker unable to perform any job duties for a period of time. The worker eventually
makes a full recovery and cal resume all job duties.
Permanent total Disability
EMPLOYERS LIABILITY EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
What common law defense protected employers against employers' suits for
occupational injuries before the enacted workers compensation statutes?
Assumption of risk defense.
What are the specific goals of the US workers comp systems: (4)
1.) Promptly paying adequate income and medical benefits, according to a fixed and
predetermined schedule, to injured employees or their dependents regardless of fault.
2.) Eliminating the delays and costs of litigation to the employee and to society 3.)
Establishing a guarantee of benefit payment, secured by insurance 4.) Promoting
industrial safety and hygiene.
In what instances may employees still be allowed to make tort suits against their
employers for occupational injuries despite the existence of workers
compensation statutes: (4)
1.) When an employee works in a job that is not subject to workers compensation
statute, such as a domestic employer. 2.) When an employee's injuries are intentionally
caused by the employer. 3.) When an employee's injuries result from the employer's
performing in some capacity other than as an employer. 4.) When an employee fails to
provide financial security for its workers compensation obligations.
,If someone is injured severely on the job how would workers compensation
benefit them?
Compensation statutes (laws passed by legislative bodies) provide defined benefits to
employees or their dependents for occupational injuries. In this context, "occupational
injury" means either injury or disease arising out of and in the course of the injured
person's employment.
If someone is severely injured on the job, describe the problems they would have
faced before the enactment of workers compensation statutes
1.) Employees brining suit would usually be fired. 2.) Co-workers, often the only witness
to an accident, were reluctant to testify against the employer. 3.) A lawsuit could take
years to resolve. 4.) Even if employees won their suits, court awards were often
inadequate.
Statutory Employee
An independent contractor's employee who, because the independent contractor has
not maintained workers compensation insurance, is considered to be an employee of
the principal employing the independent contractor.
Why is the distinction between independent contractors and employees
important in workers compensation claims?
As a general rule, an employer's legal obligations under workers compensation laws
extend to employees only, not to independent contractors.
Under what circumstances might a principal become liable to provide workers
compensation benefits to an employee of an independent contractor hired by the
principal?
, Some workers compensation statutes hold the principal liable to provide workers
compensation benefits to an employee of an independent contractor hired by the
principal if the independent contractor does not have valid workers compensation
insurance.
What workers-compensation related precautions should an organization take
when hiring an independent contractor to perform work for an organization?
The organization should obtain certificates of insurance from the independent
contractors to make sure that the contractor has workers compensation insurance. The
organization should also maintain valid workers compensation insurance in case the
contractor does not have workers compensaition insurance when a loss actually occurs.
Who would provide temporary employees with workers compensation insurance?
Temporary employees are considered to be regular employees of the providing firm, not
of the firm using the temporary employees services. Accordingly, the providing firm is
responsible for obtaining workers compensation for these employees.
Who would provide leased employees with workers compensation insurance?
They are co-employees of the leasing contractor sometimes called a professional
employer organization (PEO), and of the client company. The PEO is responsible for all
payroll taxes, employee benefits, and workers compensation coverage.
Temporary Total Disability:
A disability caused by work-related injury or disease that temporarily renders an injured
worker unable to perform any job duties for a period of time. The worker eventually
makes a full recovery and cal resume all job duties.
Permanent total Disability
