Term
| Workers compensation statute |
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Definition
| A statute that obligates employers, regardless of fault, to pay specified medical, disability, rehabilitation, and death benefits for their employees' job-related injuries and diseases. (p. 12.3) |
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Term
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Definition
| Disease thought to be caused by work or the work environment. (p. 12.4) |
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Term
| Temporary partial disability |
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Definition
| A disability caused by a work-related injury or disease that temporarily limits the extent to which an employee can perform job duties for a period of time. (p. 12.5) |
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Term
| Temporary total disability |
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Definition
| A disability caused by a work-related injury or disease that temporarily renders an injured employee unable to perform any job duties for a period of time. (p. 12.5) |
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Term
| Permanent partial disability |
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Definition
| A disability caused by a work-related injury or disease that impairs the injured employee's earning capacity for life, but the employee is able to work at reduced efficiency. (p. 12.5) |
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Term
| Permanent total disability |
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Definition
| A disability caused by a work-related injury or disease that renders an injured employee unable to ever return to gainful employment. (p. 12.5) |
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Term
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Definition
| A person hired to perform services for another under the direction and control of the other party, called the employer. (p. 12.8) |
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Term
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Definition
| A person (or organization) hired to perform services without being subject to the hirer's direction and control regarding work details. (p. 12.8) |
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Term
| United States Longshore and Harbor Workers' Compensation Act (LHWCA) |
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Definition
| A federal statute that eliminates the right of most maritime workers (other than crew members of vessels) to sue their employers and in return requires such employers to provide injured or ill workers with benefits like those provided by state workers comp (p. 12.11) |
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Term
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Definition
| A federal statute that permits injured members of a vessel's crew (or survivors of a deceased crew member) to sue their employer for damages due to the employer's negligence. (p. 12.11) |
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Term
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Definition
| A state fund that sells workers compensation insurance in competition with private insurance companies. (p. 12.13) |
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Term
| Monopolistic state fund (exclusive state fund) |
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Definition
| A facility, owned and operated by a state government, that provides workers compensation insurance and that does not permit any other insurers to sell workers compensation insurance in that state. (p. 12.13) |
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Term
| Employers mutual insurance company |
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Definition
| A mutual insurer established by a state's legislature to write workers compensation insurance for any qualified employer in the state. (p. 12.13) |
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Term
| Aggregate excess insurance (stop loss excess) |
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Definition
| Insurance that covers losses only after the insured has retained a stated amount of aggregate loss during the policy period. (p. 12.14) |
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Term
| Specific excess insurance |
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Definition
| Insurance that covers loss due to a single occurrence only for the amount that exceeds the policy retention. (p. 12.14) |
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Term
| Workers compensation and employers liability insurance |
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Definition
| Insurance that covers (1) benefits an employer is obligated to pay under workers compensation laws and (2) employee injury claims made against the employer that are not covered by workers compensation laws. (p. 12.15) |
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Term
| Workers Compensation and Employers Liability Insurance Policy (WC&EL policy) |
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Definition
| The policy used in most states to provide workers compensation and employers liability insurance. (p. 12.15) |
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Term
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Definition
| Insurance that automatically extends coverage to the insured's operations in any state listed in Item 3.C of the W&EL Information Page. (p. 12.22) |
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Term
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Definition
| Coverage for employers liability that private insurers provide to employers operating in a monopolistic fund state that does not include such insurance in its workers compensation policies. (p. 12.22) |
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Term
| Voluntary Compensation and Employers Liability Endorsement |
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Definition
| Endorsement that amends the WC&EL policy to cover employees who are not subject to a workers compensation statute. (p. 12.25) |
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Term
| United States Longshore and Harbor Workers' Compensation Act Endorsement |
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Definition
| Endorsement that amends the WC&EL policy to cover the insured's obligations under the LHWCA. (p. 12.26) |
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Term
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Definition
| Rating plan that increases or reduces the premium for a future period based on the insured's own loss experience for a period in the recent past. (p. 12.29) |
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Term
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Definition
| A rate multiplier derived from the experience rating computation. (p 12.29) |
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Term
| Retrospective rating plan |
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Definition
| Rating plan that increases or reduces an insured's premium for a policy period based on the insured’s own losses during the same period. (p. 12.29) |
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Term
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Definition
| A flat charge designed to cover administrative expenses, such as policy issuance and record keeping, that are common to all policies. (p. 12.30) |
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Term
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Definition
| An insurance program with a deductible of $50,000 or higher that allows the insured to self-insure most of its workers compensation claims without establishing a qualifying self-insurance plan. (p. 12.30) |
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