Workers' Compensation Insurance

Remuneration

The premium for each work classification is determined by multiplying a rate and a premium basis.
The premium basis is employee remuneration.

Second Injury Fund

Pays compensation on behalf of an employer to an employee who has already suffered a prior disabling injury, and now sustains a subsequent injury, and the combination of the 2 injuries creates a greater disability than the second injury would have created by itself.

Assigned Risk Plan

A state required plan where all insurers must participate, providing workers' compensation insurance for those persons not able to obtain insurance through the voluntary market.

Federal Employers Liability Act (FELA)

Workers' Compensation that applies to interstate railroad workers.

U.S. Longshoremen and Harbor Workers' Compensation Act

Workers' Compensation that applies to workers who load, unload, build, or repair ships (but not to the crew of the ship).

Occupational Disease

Disease that must:

• Arise out of the course of employment, and

• Be caused by conditions that are particular to that employment.

Funeral Expense Benefit

A statutory maximum amount, varying from state to state, provided as a burial allowance.

Disability Income Benefits

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• Temporary Total

• Permanent Total

• Temporary Partial

• Permanent Partial

• Scheduled Benefits

Rehabilitation Benefits

Physical therapy and vocational training are utilized with the objective of returning the injured employee to work as soon as possible.

Federal Employees Compensation Act

Workers' Compensation that applies to all U.S. civilian employees.

Defense Base Act

Workers' Compensation that applies to workers on military bases outside the United States.

Workers' Compensation

Covers all work related injuries and occupational diseases.

Monopolistic vs. Competitive

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• Monopolistic — Workers' Compensation insurance only available through state fund.

• Competitive — Workers' Compensation insurance available through private insurers.

Compulsory vs. Elective

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• Compulsory — Employers required to provide Workers' Compensation benefits to employees or demonstrate the ability to provide.

• Elective — Employers have choice to accept or reject Workers' Compensation laws.

Reinsurance

A device used by insurers to transfer or share in a risk. Consists of the originating application (ceding company) and the insurer who share in the risk (reinsurance insurer).

Fellow Servant Rule

Removes the employer's negligence if a fellow employee contributed in any way to the loss.

Jones Act or Merchant Marine Act of 1920

Workers' Compensation that applies to sailors injured by the negligence of others.