Chapter 14 - WC

Question 1

What are the three common law defenses that employees had to use against their Employer before WC policies existed?

Answer 1

Assumption of Risk
Fellow Servant Rule
Contributory Negligence

Question 2

Define Compulsory

Answer 2

Jurisdictions where WC benefits are mandated by the state and employers must provide WC benefits that complies with the state’s law to their employees

Question 3

Define Elective

Answer 3

Jurisdictions where the state does not mandate WC benefits and the employer can reject state WC laws. If rejected, the employee can sue the employer

Question 4

Define a monopolistic state

Answer 4

WC is only available through state fund

Question 5

Define Competitive State

Answer 5

WC is available through private insurers as well as state fund

Question 6

Are employers required to cover independent contractors?

Answer 6

Depends on the state - FL does not require independent contractors

Question 7

How many employees must you have to be exempt from WC?

Answer 7

1 to 3 (FL - 3 or less)

Question 8

Which federal WC law governs interstate railroad workers?

Answer 8

Federal Employers Liability Act

Question 9

Which federal WC law governs workers who load, unload, build, or repair ships (but not the crew)?

Answer 9

U.S. Longshoremen and Harbor WC Act

Question 10

Which federal WC law governs sailors injured by the negligence of others?

Answer 10

The Jones Act

Question 11

Which federal WC law governs all US civilians?

Answer 11

Federal Employees Compensation Act

Question 12

Which federal WC law governs workers on military bases?

Answer 12

Defense Base Act

Question 13

Define temporary total disability

Answer 13

When someone is 100% disabled temporarily
Benefits begin after a waiting period but are retroactive after a disability lasts a certain amount of time - usually 66%

Question 14

Define Permanent Total Disability

Answer 14

Permanently unable to work

benefits are paid for life - usually 66%

Question 15

Define Temporary Partial Disability

Answer 15

Can do some work but not 100%. Temporary.

Benefits are calculated as a percentage of the difference in wages

Question 16

Define Permanent Partial Disability

Answer 16

Can do work but will never fully recover.
Benefits are scheduled (a dollar amount for an eye or hand. these benefits are usually paid in addition to other benefits.)

Question 17

Describe the Second Injury Fund

Answer 17

Allows employers to be responsible for the second injury as if the prior injury did not occur and the fund pays the difference.

Question 18

What are the six parts to a workers compensation policy?

Answer 18

Part 1 - WC Insurance
2 - Employer's Liability Insurance
3- Other States Insurance
4 - Your duties
5 - premium
6 - conditions

Question 19

What does part 2 cover?

Answer 19

Not medical expenses incurred by the injured employee. Covers other BI damages the insured is legally liable for outside of the WC laws - examples: care and loss of services (children), consequential injury to dependents, damages claimed by a third party as a result of the employees injuries.

Question 20

Define the Doctrine of Dual Capacity

Answer 20

When an employee is injured by a product the employer manufactures

Question 21

What does Part 3 state?

Answer 21

Insurance can apply to other states as long as they are not monopolistic. Coverage would need to be added within 30 days

Question 22

Describe the voluntary compensation endorsement

Answer 22

An endorsement an employer can use when WC is not required but would like to provide it to their employees

Question 23

Describe Assigned Risk Plan

Answer 23

Allows for employers to obtain WC through an Assigned Risk Plan since they couldn’t obtain WC through the market. Sometimes, instead of a risk plan, a state insurance fund is used.

Question 24

Which type of WC Benefit does not have a limit?

Answer 24

Medical Benefits