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Answers to the Workers Comp Advanced Quiz + Bonus

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Answers to the Workers Comp Advanced Quiz – Did You Answer All 12 Correctly?

I was supposed to post an article for the answers to the workers comp advanced article before Thanksgiving.  I decided to delay it one week as no newsletter was published last week either.

pic turkey answers for the workers comp advanced quiz
(c) Wikimedia License – James From Boulder

The associated quiz can be found at this link.  The article and newsletter readers requested that I separate the answers from the quiz so that a quiz taker does not have the answers sitting in front of them.  The readers always win.

  1. The last Federal Government full study on the US Workers Comp system occurred in 1972.  The two persons responsible for publishing the study were John F. Burton, Jr. and President Nixon.   You can search the associated articles on this website by searching for Nixon in the search box.
  2. Forty-one states use NCCI as their rating bureau.
  3. Workers Comp subrogation funds are sometimes “left on the table” and not pursued to the fullest extent possible.  In the 1990s, a shift was made to make Workers Comp adjusters more specialized.  Prior to that time, many insurance adjusters were trained as all-lines adjusters which provided experience in liability claims handling.  Subrogation was “trained knowledge” to most adjusters.  Our claim reviews indicated that subrogation was being passed over by claim adjusters that were not trained in any area of liability insurance beyond workers comp.  The best way to track these funds as an insured is to use a subrogation diary.  Check this article out for more info.
  4. The third largest foreign company investor in US Securities is the United Kingdom.  The two largest countries are Japan followed by China.  The insurance markets can be affected by the movement of these investments.
  5. The yearly report required by the SEC for insurance companies is the 10-k.  One can discover huge amounts of information from these reports.   See this webpage for more info.  One can find many interesting numbers in these SEC-required reports.
  6. The neutral Experience Modification Factor is 1.0.  The 1.0 means that an employer that has a neutral factor will not receive a credit or debit modification factor. The insured has the same loss experience as what the rating bureau has determined as the expected losses for their size.
  7. An insurance company bankruptcy is referred to as being placed in receivership.  That state’s Insurance Commissioner determines when an insurance company is placed in receivership.  One rule of thumb is an insurance carrier that has less than 15% in reserves to pay claims becomes a concern to the Insurance Commissioner.
  8. An insurance carrier can perform a workers compensation premium audit on the policy for three years after expiry.  California allows the carrier to only perform a premium audit for one year in the past or 1/1/2022.
  9. Employers are unfortunately placed in Assigned Risk Pools for many reasons.  The bottom-line reason is that no voluntary market exists for the type of employer.  We had a reader email us a few years back asking why they were placed into a risk pool even with a low Experience Mod.  One of the most frustrating reasons for employers is that carriers are not writing workers comp insurance for a type of employer in a given state regardless of the Modification Factor.  Trucking companies and Temp agencies are two examples of companies that had no voluntary insurance carriers in certain states.
  10. Texas allows employers that qualify to opt-out of their workers compensation system.  The employer is referred to as a non-subscriber.
  11. Answer to the Workers Comp Advanced Quiz Bonus #1 –  The Institutes are located in Malvern, PA.
  12. Answer to the Workers Comp Advanced Quiz Bonus #2 – Yes, no one should be discouraged from achieving a high level of success even without possessing a college degree. The recommended list of methods for success are:
    1. Working your way up from the bottom.
    2. Obtaining designations from the Institutes.  See #11.
    3. Finding a mentor.
    4.  Having insurance industry expertise in another line of insurance.
    5.  Obtaining your license immediately.
    6. Having a good work personality.
    7. Being professional at all times.

If you had all the answers to the workers comp advanced quiz, you are very knowledgeable – congrats to you!

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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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