Question

106. According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employers liability policy when

(Choose from the following options)
1. The insured expects to extend operations to that state.
2. The insured has operations in the state when the policy is written.
3. The insurer is not licensed to write workers compensation in that state.
4. The state has a monopolistic workers compensation fund.

Answer 1

A state should be listed in Part Three - Other States Insurance of the workers compensation policy if the insured expects to extend operations to that state, ensuring compliance and coverage continuity as the company expands.

Step-by-step explanation:

The question asks about Part Three - Other States Insurance of the workers compensation and employers liability policy form and when a state should be listed in this part of the policy. According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - Other States Insurance if the insured expects to extend operations to that state. It is important to note that states with a monopolistic workers compensation fund should not be listed in this part of the policy because employers must obtain workers compensation insurance directly from the state fund.

Workman's compensation insurance plays a critical role in protecting both employees and employers by covering benefits for workers who suffer an injury on the job. It is a type of state insurance where employers contribute a portion of their payroll to a state-run fund. Employers must be compliant with the laws in each state they operate in, and listing states preemptively in the insurance policy ensures coverage continuity as the company expands its operations.