The WC&EL policy addresses two types of loss exposures related to employees. Part ____ provides state-mandated benefits following an injury or illness.

• A. Part One
• B. Part Two
• C. Part Three
• D. Part Six

Answer: (A)

The main idea is the split between statutory benefits and extra liability exposure. The portion that provides benefits mandated by state law for work-related injuries or illnesses is the workers’ compensation portion. This part delivers medical care, wage replacement, rehabilitation, and survivor benefits as required by state statutes, and it operates on a no-fault basis in exchange for the employee giving up the right to sue the employer in most cases. The other portion, employers’ liability, covers liability outside those statutory benefits, such as legal claims of negligence or other liability not included in the workers’ compensation program. So the section that handles state-mandated benefits after an injury or illness is the workers’ compensation portion.