WVPCI West Virginia Property and Casualty Insurance - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An insurer calculating a manufacturing employer's workers compensation premium applies a separate published rate to every classification of worker based on the duties each performs, then multiplies that rate against a measure of exposure. Which two factors together form the primary basis for determining this premium?

square footage and building age

number of claims and tenure

payroll and job classification

revenue and number of locations

Question 42: Two employers in the identical classification pay very different workers compensation premiums because one has a significantly worse history of claims than the average business in that same classification. Which rating factor is applied to the manual premium to produce this difference?

the retrospective rating adjustment

the loss control credit

the premium discount schedule

the experience modification factor

Question 43: An employee injured on the job receives medical and wage benefits automatically, without anyone needing to prove the employer was careless, while a customer hurt at the same business must prove the business was negligent before collecting damages. What distinguishes the workers compensation system from a liability policy?

workers compensation pays without fault

liability coverage never requires proof

workers compensation covers only property damage

liability coverage pays only employees

Question 44: A risk manager reviewing the employers liability section of a workers compensation policy notices the insurer applies one limit to a single accident, a separate limit to disease claims involving one employee, and yet another limit covering total disease claims for the whole policy term. What structure does this describe?

a single aggregate liability limit

the three-part employers liability limit

a blanket per-occurrence limit only

a combined single limit endorsement

Question 45: An employer deliberately removes a required safety guard from a machine, intending to injure a specific worker who is later hurt using that machine. Under the general concept behind exclusive remedy, why might this employee still be permitted to pursue a separate civil lawsuit against the employer?

any workplace injury may be litigated

the employer waived statutory immunity

intentional injury falls outside exclusive remedy

employers liability coverage requires a lawsuit

Question 46: A small corporation's sole executive officer wants statutory workers compensation benefits to apply to himself in the event he is hurt while performing ordinary duties for the business. Under standard policy treatment, how is this officer typically handled absent any special action?

automatically excluded with no option to add

treated the same as any customer

covered only under Part Three

included unless specifically excluded by endorsement

Question 47: A staffing firm's regular payroll employee is assigned to work full time at a client company's warehouse under that client's direct daily supervision, and the client wants to be treated as the employer for workers compensation purposes for that assignment. Which endorsement accomplishes this?

the alternate employer endorsement

the other states insurance endorsement

a waiver of subrogation

the voluntary compensation endorsement

Question 48: A trusted accounting clerk secretly diverts company funds into a personal account over several months, intending to profit personally at the employer's expense. Which crime insuring agreement is specifically designed to respond to this kind of loss caused by an employee's own dishonest act?

forgery coverage

employee dishonesty coverage

computer fraud coverage

money and securities coverage

Question 49: A business owner wonders whether a temporary worker supplied by a staffing agency, who reports daily to the business and works under its direct supervision, would count as a covered employee if that worker committed a dishonest act. Under standard crime form treatment, how is this worker generally handled?

excluded because paid by another firm

covered only under a rider

included within the employee definition

treated as an independent contractor

Question 50: A claims examiner reviewing a crime loss must decide whether the event fits the policy's definition of robbery or its definition of burglary before applying the correct insuring agreement. What is the central factor that separates these two defined terms from each other?

the total dollar value stolen

whether police later made an arrest

the time of day the loss occurred

the presence of force or a threat

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