WCCA EXAM 2 QUESTIONS AND VERIFIED ANSWERS
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? - CORRECT 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? - CORRECT
ANSWER✅✅✅At the time of injury only
California Labor Code section 3351 defines an employee as which one of the following? - CORRECT
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? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER✅✅✅The penalty will be enforced by the director.
An employer self-insures its workers compensation exposure. Under California law, this employer -
CORRECT 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? - CORRECT 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? - CORRECT
ANSWER✅✅✅Successor liability may be imposed on an insurer that has merged with, consolidated,
or otherwise continued the business of another entity.
Per LC 3700.5, an employer in California is subject to misdemeanor prosecution for failure to secure
payment of compensation. The jail terms and fines in this portion of the statute are for the purpose of -
CORRECT ANSWER✅✅✅Achieving compliance with the mandate to secure payment of
compensation.
What is the maximum monetary limit for a civil penalty as the result of improper claims practices in
California? - CORRECT ANSWER✅✅✅$100,000
Which one of the following persons or entities is authorized to audit workers compensation claim files
and claim logs under California workers compensation law? - CORRECT ANSWER✅✅✅The
administrative director of the Division of Workers Compensation
Which one of the following statements about audits of workers compensation claims practices in
California is true? - CORRECT ANSWER✅✅✅The Audit Unit can selectively audit claim files and focus
solely on the parts that pertain to a complaint or specific type of violation.
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? - CORRECT 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? - CORRECT
ANSWER✅✅✅At the time of injury only
California Labor Code section 3351 defines an employee as which one of the following? - CORRECT
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? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER✅✅✅The penalty will be enforced by the director.
An employer self-insures its workers compensation exposure. Under California law, this employer -
CORRECT 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? - CORRECT 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? - CORRECT
ANSWER✅✅✅Successor liability may be imposed on an insurer that has merged with, consolidated,
or otherwise continued the business of another entity.
Per LC 3700.5, an employer in California is subject to misdemeanor prosecution for failure to secure
payment of compensation. The jail terms and fines in this portion of the statute are for the purpose of -
CORRECT ANSWER✅✅✅Achieving compliance with the mandate to secure payment of
compensation.
What is the maximum monetary limit for a civil penalty as the result of improper claims practices in
California? - CORRECT ANSWER✅✅✅$100,000
Which one of the following persons or entities is authorized to audit workers compensation claim files
and claim logs under California workers compensation law? - CORRECT ANSWER✅✅✅The
administrative director of the Division of Workers Compensation
Which one of the following statements about audits of workers compensation claims practices in
California is true? - CORRECT ANSWER✅✅✅The Audit Unit can selectively audit claim files and focus
solely on the parts that pertain to a complaint or specific type of violation.
