Which of the following statements regarding workers' compensation is true? Most workers' compensation laws in the U.S. states were first enacted after 1965 B Workers' compensation is one of the smaller lines of commercial insurance C Employers in some states can purchase coverage from a state-operated fund D Workers' compensation laws in all states prohibit self-insurance Employers in an exclusive or monopolistic state like Ohio have the option of purchasing workers' compensation insurance from a private insurer. O A True o B False Medical benefits make up over 50 percent of the overall costs of workers' compensation and have been growing over the past 20 years. A True B False Under an experience rating plan, all else equal, if an insured's experience suggests that its actual loss ratio is higher than the expected loss ratio its workers' compensation premium for the next year will be (higher or lower)? Word Answer Experience rating and retrospective rating provide little incentive to employers to reduce workers' compensation accidents. o A True O B False Because retros and large deductible insurance plans create a financial exposure for the insurer if the insured encounters financial difficulties, insurers often require the insured to post a financial guarantee such as a Which of the following is a potential benefit of a captive insurer? Investment options are more restrictive O B Policy language and coverage can be broader than with standard commercial insurance o C Regulatory restrictions tend to be more stringent O D Reinsurance cannot be used Onshore domiciles for captives have become less attractive in recent years than offshore domiciles o A True o B False