P and C 9 Workers Compensation Insurance

Question 1

Second-injury Fund

Answer 1

A fund established under Workers’ Compensation laws in most states to help pay any increased compensation that may result when an employee with a previous injury is insured again.

Question 2

Self-insurers

Answer 2

Where permitted by state law, employers who can provide satisfactory proof of financial ability may carry their own Workers’ Compensation risk - that is, they may self-insure.

Question 3

Workers’ Compensation Insurance

Answer 3

Insurance that covers an employer’s obligation under Workers’ Compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness. Workers’ Compensation coverage also includes separate coverage for Employers Liability.

Question 4

Monopolistic States

Answer 4

A state insurance plan that prohibits competition by private carriers (e.g. Workers’ Compensation fund in some states).