QUESTION 5 Sometimes employers try to reduce the cost of a workers' compensation claim by bringing an injured employee back to work in some limited capacity that is within the medical restrictions that the doctor has placed on them. Typically, when this occurs, the employee does not perform all of their normal job duties. Often in these circumstances, a supervisor makes sure that the employee does not do work that could result in an aggravation of their previous injury. This type of claims management tactic could be called:

Light-duty work.

Favored work.

Supervised work.

All of the above.

QUESTION 6 The most important factor in determining the cost of workers' compensation insurance is:

The amount of the payroll and the number of workers in higher risk job classifications.

The ability of the company attorneys to bargain.

The state in which an employer is operating.

The insurance agent.

7 Employers can reduce their workers' compensation costs by reducing the frequency and/or severity of claims. The difference between frequency and severity is:

One deals with the number of accidents per worker and the other with the cost of each accident.

One deals with noise complaints and the other with back complaints.

One is controllable by loss prevention and the other through active claim management.

Answers 1. and 3. are correct.

8 A Third-Party Administrator (TPA) is a company that will:

Assume all the risks of workers' compensation liability of another employer.

Sell workers' compensation insurance.

Handle the processing of claims for an employer.

None of the above.

9 Self-insurance differs from commercial workers' compensation insurance in the following way:

The employer does not have to pay all of the wage-loss and medical benefits that a commercial insurance company must pay.

The variability of the cost is assumed by the employer.

It is always cheaper to self-insure.

Self-insured employers are exempt from state workers' compensation regulations.

10 Employers who terminate employees for filing workers' compensation claims:

Can do so if the employee is unable to work during rehab.

Can reduce their costs.

Can be held legally liable for retaliation.

All of the above.