COMMERCIAL CASUALTY II – CISR QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE
2025/2026
State workers compensation laws are no-fault systems. T/F - CORRECT
ANSWER -True
Employer purchase of workers compensation insurance is voluntary in all state but
Texas and New Jersey. T/F - CORRECT ANSWER -False; With the exception of
Texas and new Jersey, all states have made employer purchase of workers
compensation insurance mandatory.
One advantage of workers compensation to employers is predictable costs. T/F -
CORRECT ANSWER -True
List 4 states that have monopolistic funds. - CORRECT ANSWER -North
Dakota, Ohio, Wyoming, Washington
List 2 states where workers compensation is elective for employers. - CORRECT
ANSWER -Texas and New Jersey
Both item 3A and item 3C of the information pages of a WC policy list the states
the policy covers. Explain the difference between these two items. - CORRECT
ANSWER -3A triggers WC insurance for the state or state listed in which the
policyholder currently has ongoing business. 3C lists all of other states except
those listed in 3A and monopolistic states that the policyholder may conduct
business during the policy term.
,What is the experience modifier, and what is its purpose? - CORRECT ANSWER
-The experience modifier reflects employers claims experience, that is, the
frequency and severity, or cost, of claims. The experience modifier is used to
calculate an employers premium.
What information does the General Section A provide in a WC policy? -
CORRECT ANSWER -Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? -
CORRECT ANSWER -Clarifies who in insured
What information does the General Section C provide in a WC policy? -
CORRECT ANSWER -Describes workers compensation law
What information does the General Section D provide in a WC policy? -
CORRECT ANSWER -Explains in which states coverage applies
What information does the General Section E in a WC policy? - CORRECT
ANSWER -Explains in which states coverage applies and identifies workplace
locations where coverage applies
Explain what Paragraph C in the General Section of the WC and EL insurance
policy does not apply to. - CORRECT ANSWER -Paragraph C does not focus on
federal workers or federal workers compensation laws.
What is the correct compensation category for the following benefit: Reasonable
and necessary treatment for an injury - CORRECT ANSWER -Medical
,What is the correct compensation category for the following benefit:
Compensation for types or permanent injury - CORRECT ANSWER -Disability
What is the correct compensation category for the following benefit:
Compensation for lost wages - CORRECT ANSWER -Disability
What is the correct compensation category for the following benefit: Financial
support for beneficiaries - CORRECT ANSWER -Death
What is the correct compensation category for the following benefit: Restoration of
an employee's physical capacity - CORRECT ANSWER -Rehabilitation
What are the medical and disability benefits that are associated with workers comp
based on? What are their time limits? - CORRECT ANSWER -WC would pay
medical costs for all reasonable injuries, with no time limits. Disability benefits are
based on an injured employee's income and are limited to the extent of their
disability.
Summarize the purpose of paragraph B in Part One of the WC and EL insurance
policy. - CORRECT ANSWER -Following the workers compensation law that
applies, paragraph B expresses the insurer's promise to pay required benefits
promptly.
What type of employers liability claim applies to the following scenario: Some key
safety rules are being ignored at Company XYZ- the insured. A company employee
is fatally injured in a job-site accident. The employee's widow and children sue the
employer for loss of the care and companionship of their husband and father -
CORRECT ANSWER -Care and Loss of Services Claim
, Which endorsement on a WC policy would you use to cover employees who are
the masters or crew of a vessel? - CORRECT ANSWER -Maritime Coverage
Endorsement
Which endorsement on a WC policy would you use to cover employees who load
or unload ships? - CORRECT ANSWER -Longshore and Harbor Worker
Coverage Endorsment
Which endorsement on a WC policy would you use to cover employees who are
not explicitly covered by the workers compensation law? - CORRECT ANSWER
-Voluntary Compensation Endorsement
Which endorsement on a WC policy would you use to cover repariation expenses
of an employee injured overseas? - CORRECT ANSWER -Foreign Workers
Compensation Coverage Endorsement
Worker compensation is a(n) _____________ in which employees who incur
workplace injuries receive benefits by law, while employers are protected from
employee lawsuits. - CORRECT ANSWER -no-fault system
With the exception of Texas and New Jersey, all state have made employer
purchase of workers compensation coverage _____________. - CORRECT
ANSWER -Mandatory
The most common funding option for the purchase of a Workers Com Policy is
from a(n) ________________ that sells the coverage. - CORRECT ANSWER -
Insurance company
(VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE
2025/2026
State workers compensation laws are no-fault systems. T/F - CORRECT
ANSWER -True
Employer purchase of workers compensation insurance is voluntary in all state but
Texas and New Jersey. T/F - CORRECT ANSWER -False; With the exception of
Texas and new Jersey, all states have made employer purchase of workers
compensation insurance mandatory.
One advantage of workers compensation to employers is predictable costs. T/F -
CORRECT ANSWER -True
List 4 states that have monopolistic funds. - CORRECT ANSWER -North
Dakota, Ohio, Wyoming, Washington
List 2 states where workers compensation is elective for employers. - CORRECT
ANSWER -Texas and New Jersey
Both item 3A and item 3C of the information pages of a WC policy list the states
the policy covers. Explain the difference between these two items. - CORRECT
ANSWER -3A triggers WC insurance for the state or state listed in which the
policyholder currently has ongoing business. 3C lists all of other states except
those listed in 3A and monopolistic states that the policyholder may conduct
business during the policy term.
,What is the experience modifier, and what is its purpose? - CORRECT ANSWER
-The experience modifier reflects employers claims experience, that is, the
frequency and severity, or cost, of claims. The experience modifier is used to
calculate an employers premium.
What information does the General Section A provide in a WC policy? -
CORRECT ANSWER -Explains the policy's role as an insurance contract.
What information does the General Section B provide in a WC policy? -
CORRECT ANSWER -Clarifies who in insured
What information does the General Section C provide in a WC policy? -
CORRECT ANSWER -Describes workers compensation law
What information does the General Section D provide in a WC policy? -
CORRECT ANSWER -Explains in which states coverage applies
What information does the General Section E in a WC policy? - CORRECT
ANSWER -Explains in which states coverage applies and identifies workplace
locations where coverage applies
Explain what Paragraph C in the General Section of the WC and EL insurance
policy does not apply to. - CORRECT ANSWER -Paragraph C does not focus on
federal workers or federal workers compensation laws.
What is the correct compensation category for the following benefit: Reasonable
and necessary treatment for an injury - CORRECT ANSWER -Medical
,What is the correct compensation category for the following benefit:
Compensation for types or permanent injury - CORRECT ANSWER -Disability
What is the correct compensation category for the following benefit:
Compensation for lost wages - CORRECT ANSWER -Disability
What is the correct compensation category for the following benefit: Financial
support for beneficiaries - CORRECT ANSWER -Death
What is the correct compensation category for the following benefit: Restoration of
an employee's physical capacity - CORRECT ANSWER -Rehabilitation
What are the medical and disability benefits that are associated with workers comp
based on? What are their time limits? - CORRECT ANSWER -WC would pay
medical costs for all reasonable injuries, with no time limits. Disability benefits are
based on an injured employee's income and are limited to the extent of their
disability.
Summarize the purpose of paragraph B in Part One of the WC and EL insurance
policy. - CORRECT ANSWER -Following the workers compensation law that
applies, paragraph B expresses the insurer's promise to pay required benefits
promptly.
What type of employers liability claim applies to the following scenario: Some key
safety rules are being ignored at Company XYZ- the insured. A company employee
is fatally injured in a job-site accident. The employee's widow and children sue the
employer for loss of the care and companionship of their husband and father -
CORRECT ANSWER -Care and Loss of Services Claim
, Which endorsement on a WC policy would you use to cover employees who are
the masters or crew of a vessel? - CORRECT ANSWER -Maritime Coverage
Endorsement
Which endorsement on a WC policy would you use to cover employees who load
or unload ships? - CORRECT ANSWER -Longshore and Harbor Worker
Coverage Endorsment
Which endorsement on a WC policy would you use to cover employees who are
not explicitly covered by the workers compensation law? - CORRECT ANSWER
-Voluntary Compensation Endorsement
Which endorsement on a WC policy would you use to cover repariation expenses
of an employee injured overseas? - CORRECT ANSWER -Foreign Workers
Compensation Coverage Endorsement
Worker compensation is a(n) _____________ in which employees who incur
workplace injuries receive benefits by law, while employers are protected from
employee lawsuits. - CORRECT ANSWER -no-fault system
With the exception of Texas and New Jersey, all state have made employer
purchase of workers compensation coverage _____________. - CORRECT
ANSWER -Mandatory
The most common funding option for the purchase of a Workers Com Policy is
from a(n) ________________ that sells the coverage. - CORRECT ANSWER -
Insurance company
