Bill's Premium Packing operates a fruit$$ and vegetable$$canning operation. It purchases its produce from growers in three states in the Northeast. As a result, its operations are seasonal, and during peak periods, it depends on large numbers of casual laborers who are exempt from coverage under the applicable state workers compensation laws. Therefore, the company has purchased a Voluntary Compensation and Employers Liability Endorsement for its Workers Compensation and Employers Liability Insurance Policy. When a casual laborer is badly injured on the job, the worker launches a lawsuit against Bill's Premium Packing, alleging negligence. Which one of the following best describes how Bill's Premium Packing's Workers Compensation and Employers Liabilty insurer would respond?

The insurer would make no payment; by launching the suit, the injured worker has declined the voluntary benefits available under the endorsement.

The insurer would defend the insured against the employee's suit and pay any settlement awarded, subject to the stipulated limits of liability

The insurer would consult with Bill$$s Premium Packing to determine whether the insured wishes to make voluntary payments under the employers liability portion of the endorsement.

The insurer would issue a check to the worker for an amount equal to the value of the benefits he would have received if he had been eligible for workers compensation.