Vocab
Primary exposure basis for WC policies.
What is payroll?
A carrier endorsement that extends coverage to subsidiaries owned by the named insured at inception.
Broad Form Named Insured
NCCI
National Council on Compensation Insurance
Type of WC policy that pays out "first dollar"
What is guaranteed cost?
What classcode would you use to classify the AAMs?
8810 Clerical Office Employees
Refers to how many claims an insured has during a policy period.
What is frequency?
The amounts set aside by the carrier to represent what they expect the final claim amount to be. This amount can change over the lifetime of the claim.
What is reserves?
SIR
Self insured retention
Deductible or SIR: The carrier pays the full claim in most cases and then bills the insured for the amount.
What is deductible?
Named insured, mailing address and covered states can be found where?
What is the Declarations page.
Rate x Payroll/100 = _____
Payments made to date + reserves = _____
What is incurred losses.
TPA
Third Party Administrator
Deductible or SIR: The insured pays the claim up to the amount before the carrier steps in.
What is SIR.
Part II
Employer's Liability
Refers to the size of an individual claim.
What is severity?
Coverage pays the expenses incurred in the transportation of an injured or ill employee back to his or her home country.
Repatriation
The United States Longshore and Harbor Workers Compensation Act
Loss cost x carrier factor = ______
What is rate?
Martin is working at the marina scraping barnacles off an ocean-going ship. His scraper slips, and he cuts himself causing a severe injury to his hand.
What is the Longshore and Harborworkers Compensation Act Coverage Endorsement
ND OH WA and WI are considered ____ states.
What are Monopolistic states.
Policies where the final premium is determined after policy expiration based on actual losses for the policy term.
Retrospective Rating
AOS
All other states
A credit that adjusts the premium for the fact that as the premium increases on a policy, the basic cost of issuing and servicing the policy does not increase at the same rate.
What is a Premium Discount?
The employer is responsible for benefits payments regardless of fault?
What is a no fault system.