Workers' Compensation Quiz

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What is the purpose of workers' compensation insurance?

To provide wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.

What is the compensation bargain?

The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system.

Why was the system of collective liability created?

To prevent employers from becoming insolvent as a result of high damage awards and to ensure security of compensation to the workers.

What is the significance of the compensation bargain?

It is the trade-off between limited coverage and lack of recourse outside the worker compensation system. Signup and view all the answers

How does the system of collective liability prevent employers from becoming insolvent?

It ensures security of compensation to the workers. Signup and view all the answers

What problem did the compensation bargain solve?

It solved the problem of employers becoming insolvent as a result of high damage awards. Signup and view all the answers

What is the role of workers' compensation in providing benefits to employees?

Workers' compensation provides wage replacement and medical benefits to employees injured in the course of employment. Signup and view all the answers

What is the trade-off that occurs with workers' compensation?

The trade-off is between assured, limited coverage and lack of recourse outside the worker compensation system. Signup and view all the answers

What problem did the system of collective liability aim to solve in regards to employers becoming insolvent?

The system of collective liability was created to prevent employers from becoming insolvent as a result of high damage awards and to ensure security of compensation to the workers. Signup and view all the answers