Workers Compensation Exam 1 Study
Guide 2025/2026 LATEST UPDATE
According to the text, workers' compensation costs are equivalent to what percentage of
a company's payroll? - correct answer20%-30%
what is meant by the term "no fault" relative to workers' compensation? - correct
answerThe employer agrees to pay for all injuries to employees regardless of whose
fault, and in turn, the employee gives up their right to sue the employer in relation to the
on-the-job injury
What are the objectives of workers' compensation, as discussed in class? - correct
answer1. Relieve public & private charities of financial drains
2. Provides sure income and medical benefits to work-related accident victims, or
income benefits to their dependents. wage replacement is typically 1/3.
3. Provide a singe remedy and reduce court delays, cost, and workloads AOE personal
injury litigation
4. Eliminate payment of fees to lawyers and witnesses, as well as, time-consuming trials
and appeals
5. Encourage maximum employer interest in safety and rehabilitation through and
appropriate experience-rating mechanism
6. Promote frank study of causes of accidents, reducing preventable accidents,
reducing preventable accidents and human suffering
Be able to describe the types of economic losses experienced by employees and their
families when a serious accident results in compensable injury to the employee. -
correct answer1. Loss of earnings & Additional Expenses
2. If a worker dies because of a work-related injury or sickness, the survivors lose the
income the worker would have earned - less the amount spent on personal expenses -
over the remainder of the individual's working career and retirement years. Total and
permanent disability cause even greater earning losses then death because the worker
must be maintained even though unable to work
3. The deceased or disabled worker often is unable to provide valuable household
services that must now be foregone or be taken over by someone else at additional
cost.
4. society also loses the taxes that injured workers would have paid and the products or
services they would have produced.
In most states, what is the income replacement ratio used by workers' compensation
systems? - correct answer66%
Guide 2025/2026 LATEST UPDATE
According to the text, workers' compensation costs are equivalent to what percentage of
a company's payroll? - correct answer20%-30%
what is meant by the term "no fault" relative to workers' compensation? - correct
answerThe employer agrees to pay for all injuries to employees regardless of whose
fault, and in turn, the employee gives up their right to sue the employer in relation to the
on-the-job injury
What are the objectives of workers' compensation, as discussed in class? - correct
answer1. Relieve public & private charities of financial drains
2. Provides sure income and medical benefits to work-related accident victims, or
income benefits to their dependents. wage replacement is typically 1/3.
3. Provide a singe remedy and reduce court delays, cost, and workloads AOE personal
injury litigation
4. Eliminate payment of fees to lawyers and witnesses, as well as, time-consuming trials
and appeals
5. Encourage maximum employer interest in safety and rehabilitation through and
appropriate experience-rating mechanism
6. Promote frank study of causes of accidents, reducing preventable accidents,
reducing preventable accidents and human suffering
Be able to describe the types of economic losses experienced by employees and their
families when a serious accident results in compensable injury to the employee. -
correct answer1. Loss of earnings & Additional Expenses
2. If a worker dies because of a work-related injury or sickness, the survivors lose the
income the worker would have earned - less the amount spent on personal expenses -
over the remainder of the individual's working career and retirement years. Total and
permanent disability cause even greater earning losses then death because the worker
must be maintained even though unable to work
3. The deceased or disabled worker often is unable to provide valuable household
services that must now be foregone or be taken over by someone else at additional
cost.
4. society also loses the taxes that injured workers would have paid and the products or
services they would have produced.
In most states, what is the income replacement ratio used by workers' compensation
systems? - correct answer66%
