Which of the following is true of the workers' compensation insurance?
A)Self-employed people pay lower premium to their employees for workers' compensation insurance as compared to corporate employees.
B)Workers' compensation insurance includes only rehabilitation expenses.
C)Employers are required to bear half of the entire cost of workers' compensation insurance.
D)Workers' compensation insurance compensates workers who are injured on the job or become ill through work-related causes.
E)Compensation received from the insurance coverage is based on historical usage; employees who file the least claims pay the lowest premiums on the insurance coverage.

Question

Quizplus · Accepted Answer

Workers' compensation insurance compensates workers who are injured on the job or become ill through work-related causes. This insurance covers not only medical expenses but also lost wages, rehabilitation costs, and death benefits to the dependents of the deceased worker. The premiums paid by employers are based on the risk associated with the type of occupation and the number of employees covered. Self-employed individuals may opt to purchase workers' compensation insurance for themselves but are not obligated to provide it to their employees. The cost of workers' compensation insurance is usually borne entirely by the employer, and there is no requirement for employees to contribute to it. Premiums are not based on historical usage but rather on industry rates and the employer's claims history.

Which of the Following Is True of the Workers' Compensation