Georgia Property & Casualty Practice Exam

What does "Other States Insurance" cover in a workers compensation policy?

1. A.) Employee injury benefits in other jurisdictions

2. B.) Legal fees associated with out-of-state claims

3. C.) Requirements under different states’ workers compensation laws

4. D.) General liability in locations outside the state of issue

The correct answer is: C.) Requirements under different states’ workers compensation laws

"Other States Insurance" within a workers' compensation policy is designed to provide coverage for employees who may be injured while working in a state other than the one where the policy is written. This provision acts as an extension to the standard coverage by ensuring that if employees travel or are assigned to work in different states, they are still protected under the workers' compensation laws applicable in those states. The correct option highlights the significance of compliance with varied workers' compensation laws that exist from state to state. Different states have different requirements for workers' compensation coverage, and the "Other States Insurance" provision ensures that those variations are addressed. This is crucial for employers with employees who may operate or be sent to different jurisdictions, as it helps to mitigate risks associated with potential work-related injuries that could occur outside the home state. The other options don’t accurately represent the primary function of "Other States Insurance." While legal fees and employee injury benefits are important considerations, they do not encapsulate the specific aim of matching the requirements outlined by each state's laws. Similarly, general liability coverage pertains more to different aspects of liability and is not directly related to the core function of workers' compensation insurance.