Question: 3 4 . Hi - Rise Builders operates in a state with neither a monopolistic nor a competitive state fund for workers compensation insurance. Due
HiRise Builders operates in a state with neither a monopolistic nor a competitive state fund for workers compensation insurance. Due to its past loss experience, HiRise cannot find a private insurer willing to provide its workers compensation insurance. HiRise may, however, be able to buy workers compensation insurance from
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a the state's department of insurance.
b the federal emergency management agency.
c the state residual market facility.
d the federal employers liability agency.
In State M workers compensation insurance is available from either private insurers or an insurance facility established and funded by the state that competes with private insurers. State M is a state with
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a a competitive state fund.
b a monopolistic state fund.
c a state residual market plan.
d an involuntary private market plan.
Builtwell Construction Company hires Flushaway Plumbers, a subcontractor, to perform plumbing work on a number of its projects. If Builtwell's controller cannot provide evidence to its workers compensation insurer, Crown Casualty, that Flushaway Plumbers has workers compensation coverage, Builtwell could
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a be held responsible for providing this coverage to Flushaway's employees and charged the applicable premium by its insurer.
b be held strictly liable for injuries to Flushaway's employees.
c be required to provide employee benefits to Flushaway's employees.
d have its policy canceled by Crown Casualty for fraud.
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