If there is a conflict between the workers compensation policy and the applicable state law, the policy will

• A. determine coverage
• B. conform to the law
• C. compromise with the law
• D. no longer be in effect

Answer: (B)

When a workers compensation policy and state law clash, the law controls. State workers compensation statutes and regulations set mandatory requirements for coverage, benefits, and obligations, so policy language must be interpreted to align with those legal rules. The policy is therefore construed to conform to the law, ensuring that any mandatory elements cannot be overridden by the contract. This principle keeps the coverage consistent with what the law requires, even if the policy language would suggest a different outcome. In practice, insurers may include language like “to the extent permitted by law” to acknowledge that the policy must conform to statutory requirements.