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Pop Quiz Answers – Did You Really Know Workers Comp?


The associated article to the below pop quiz answers can be found here at this link.  The article became very popular over the last two weeks.  Let us look at the answers – did you answer all 10 + the bonus questions?  If you have not seen the questions, go back to the pop quiz and give it a try – thanks.

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Workers Comp Pop Quiz Answers

The pop quiz answers are:

  1. New York became the most recent state to completely change its Workers Comp experience rating formula.  The formula looks very similar to the one that WCRIB (California) created in 2012.   The associated articles with this answer can be found in this WCIRB article and the more recent NYCIRB article.   You may check the WCIRB article to see what the formula looks like presently.  California and then New York changed the formula to make it simpler.  However, a few table searches are required to plug numbers into the formula.
  2.  Standard exception codes are the class codes that are allowed in policies that cover employees beyond the usual governing classification code (class code with the most premium).  Some of the exception codes can be found here.   The rating bureaus are slowly eliminating the codes by using the all-employee designation for an increasing number of classification codes.  The previous link explains the situation in more detail.
  3. The remaining monopolistic states are Ohio, Washington, North Dakota, and Wyoming.   These four states only allow policies written by the state.  Private workers comp insurance policies are banned from use in these four states. The last state to convert from a monopolistic to an open market system was West Virginia in 2006.
  4. The answer to this pop quiz question has been debated for many years.  A Workers Comp decision usually only affects the state of jurisdiction.  However, if a Court of Appeals or State Supreme Court issues a decision the decision is usually published and often circulated in the Workers Comp press outlets.  These higher-level court decisions may not have a direct effect, but attorneys and claims adjusters in other states have used them as a guide in their claims handling.
  5. This is another pop quiz answer that is a trick question (sorry).  The state may have had a seven-day waiting period which was covered by Sally S’s claim.  The “payable date” or how long Sally S had to be out of work to receive the seven-day waiting period was not specified.  The answer is unknown.
  6. Yes, self-insureds do have an Experience Modification Factor, of sorts.  The self-insured company would have had to hire an actuary to provide a Loss Development Factor (LDF).  Many states require a self-insured employer to have one promulgated every year for budgeting purposes and to ensure the state the company has a viable self-insurance program.
  7.  You can find the Six Keys to Workers Comp Savings here. 
  8. The first Workers Comp system originated in Ancient Sumeria.  It was not with the marine vessels or in Wisconsin.  The Sumerian system even provided a permanent partial disability table.  The amazing system was comprehensive in nature and was recorded on ancient stone tablets.
  9. The original Affordable Care Act mentioned Workers’ Compensation only once.
  10. China does provide a monopolistic-type work comp system to its injured workers.  The medical treatment system was rife with corruption between the government and the treating physicians.
  11. Bonus – The two top foreign countries that invest the most in US Treasuries are Japan followed by China.  If China and/or Japan dumped most of their US Treasuries (usually Treasury Bills) the market would very likely crash.  If so, then insurance carriers would have had to make up for their T-Bill losses by increasing premiums.
  12. Bonus 2 – The first article ever written on this website was in February 2007.  I wrote it as a test for future articles.  I was more diligent in writing articles later in 2007.

Looking at the pop quiz answers, how did you do?  The answers were all contained in the articles on this website. These were not easy questions. If you have anything to add or disagree with any of the pop quiz answers, please comment.  Thanks.


Workers Comp Advanced Quiz – Our Readers Requested More



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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