Life & Health Insurance Exam (National Portion)Taxes, Retirement, and Other Insurance ConceptsEasy
Which of the following is a primary objective of Workers' Compensation laws?
- ATo allow injured workers to sue their employers for negligence without limitation.
- BTo replace all lost income for the duration of an injured worker's life.
- CTo ensure prompt and reasonable income and medical benefits to victims of work-related injuries or illnesses.
- DTo provide unlimited medical benefits for all injuries, regardless of cause.
Show answer & explanationAnswer & explanation
Correct answer: C. To ensure prompt and reasonable income and medical benefits to victims of work-related injuries or illnesses.
Workers' Compensation laws aim to provide a no-fault system where employees receive prompt medical care and income benefits for work-related injuries or illnesses, in exchange for giving up the right to sue their employer.
Why the other options are wrong
- A. A key feature of Workers' Comp is that it generally prevents employees from suing their employers for covered injuries (exclusive remedy).
- B. Benefits typically replace a portion of lost income and are not necessarily for life, depending on the disability type.
- D. Benefits are for work-related injuries/illnesses and are not always unlimited.
Workers' Compensation Objective
The primary goal of Workers' Compensation is to provide prompt and reasonable medical care and income benefits to employees for work-related injuries or illnesses, regardless of fault.
- No-fault system.
- Work-related injuries/illnesses only.
- Exclusive remedy (prevents lawsuits).
- Replaces lost wages and covers medical costs.
Memory trick: Workers' Comp: Care for Work Injuries, Fast and Fair.