WC Basics
Provides medical and wage benefits to employees injured on the job
What is Workers’ Compensation?
This benefit pays a portion of lost wages during recovery.
What is Wage Replacement?
This is conducted when the policy term ends to ensure premium was accurate for the year.
What is a premium audit?
This fee covers administrative costs such as underwriting & issuing policies.
What is expense constant?
Agreement where insurance co. cannot recover damages from a 3rd party
What is waiver of subrogation?
Protects businesses from lawsuits not covered by basic workers’ comp.
What is Employer’s Liability Coverage?
This type of disability allows some work but not the original job.
What is Temporary Partial Disability (TPD)?
Penalty that may apply if an employer does not respond to an audit.
What is an Audit Non-Compliance Charge?
This factor is based on claims frequency and claims severity. Can be a charge or a credit.
What is Experience Modification Rate?
When an employee represents themselves.
What is pro se?
States that only allow WC coverage through a state fund
What are Monopolistic States?
This benefit helps employees train for a new role if they can’t return to their old job.
What are Vocational Rehabilitation Benefits?
Term for a claim that is still being processed or paid
What is an Open Claim?
This XMod factor is the industry standard and does not result in a charge or credit.
What is 1.0?
Program helps injured workers return to work safely.
What is a Return-to-Work Program?
Ensures workers receive care with no out-of-pocket expenses
What are Medical Benefits?
These benefits are paid to a worker’s family in the event of a work-related death.
What are Death Benefits?
Term for when an insurer tries to recover from a third party
What is Subrogation?
An XMod of 1.6 will result in this.
What is an increased premium?
Option allowing certain company officers, owners, or LLC members to opt out of Workers Compensation coverage for themselves.
What is officer exclusion?
First step an employee must take after a work injury
What is reporting the injury to the employer?
This disability classification applies when a worker cannot work at all, permanently.
What is Permanent Total Disability (PTD)?
Legal time limit to file a workers' comp claim
What is the Statute of Limitations?
Numeric code used to classify employees based on the type of work or industry.
What is a class code?
Proactive steps and strategies that an employer takes to prevent workplace injuries and reduce risks to employees.
What is loss control?