West Virginia Property and Casualty Licensing Practice Exam

What is Part 3 of the standard workers compensation policy?

1. Employer's liability

2. Other states insurance

3. Optional coverage

4. Coverage for work-related accidents

The correct answer is: Other states insurance

Part 3 of the standard workers' compensation policy is focused on providing coverage for other states' insurance. This portion of the policy allows employers to extend their workers' compensation coverage to other states where their employees may work, thereby ensuring compliance with various state-specific workers' compensation laws. Offering flexibility for employers who operate in multiple states, this part ensures that employees are covered under the appropriate laws, thus protecting both the employees and employers from potential liabilities that arise from work-related injuries occurring outside the primary state of operation. This coverage can be particularly important for businesses that have employees frequently traveling or temporarily assigned to projects in other states. In contrast, employer's liability, optional coverage, and coverage for work-related accidents pertain to other aspects of the policy, such as protecting employers from lawsuits filed by employees or providing additional coverages that may not be included as standard.