Georgia Property & Casualty Practice Exam

Which of the following correctly describes Part Two of a standard workers compensation policy?

1. A.) Covers statutory benefits payable under state laws

2. B.) Covers liability claims outside of workers compensation law

3. C.) Includes insurance for other states' liability

4. D.) Outlines the duties if injury occurs

The correct answer is: B.) Covers liability claims outside of workers compensation law

Part Two of a standard workers compensation policy specifically addresses the employer's liability coverage. This section is crucial because it provides additional liability protection for employers in cases where employees might sue for injuries that are not fully covered under the statutory workers' compensation benefits. This means that while workers' compensation laws typically provide certain benefits automatically, Part Two protects employers in situations where they might face lawsuits for negligence or other related claims outside the realms of the mandated workers' compensation statutes. The other options describe different aspects of the workers' compensation policy or its ancillary coverages. Option A addresses statutory benefits, which are inherently part of the workers' compensation laws and would fall under the first part of the policy that deals with the benefits paid to workers. Option C references coverage for liabilities incurred in other states, which is often detailed within the nationwide protection aspect but is separate from the employer's liability details found in Part Two. Finally, option D pertains to the reporting and claims management process following an injury rather than the actual coverage implications described in Part Two.