West Virginia Property and Casualty Licensing Practice Exam

What does "other states insurance" provide in workers compensation?

1. Coverage for injuries occurring in other countries

2. Extended coverage for employees in other states

3. Increased liability limits in other states

4. Specific endorsements for multi-state operations

The correct answer is: Extended coverage for employees in other states

The concept of "other states insurance" in workers' compensation serves the purpose of extending coverage for employees who may be working in states other than their home state. This is especially important for businesses that have employees who travel or are temporarily assigned to work in different states. When an employer has workers' compensation insurance that includes this provision, it ensures that if an employee gets injured while performing their job in a different state, they will still receive the necessary benefits for their medical expenses, wage losses, and rehabilitation, as per the workers' compensation laws of that particular state. This coverage is essential for compliance with the varying laws and regulations governing workers’ compensation across different states, which might differ significantly from the home state’s laws. The other options do not accurately address the purpose of "other states insurance" in this context. For instance, coverage for injuries occurring in other countries relates to international operations rather than state-specific concerns. Increased liability limits do not pertain to the provision of workers’ compensation, which is more focused on benefits for employee injuries rather than liability coverage. Specific endorsements for multi-state operations may involve various specific adjustments but do not encapsulate the broad protective coverage that "other states insurance" provides.