Which One of the Following Is True About Workers' Compensation

question 95

Multiple Choice

Which one of the following is true about workers' compensation?

• A)Employees are covered under the "no-fault" provision regardless of their behavior.
• B)Only about 50 percent of all U.S. workers are covered by the system.
• C)Benefits fall into four major categories: inability income, housing care, death of spouse benefits, and pension services.
• D)Self-funding by employers is restricted in most states.
• E)The system allowing employers to purchase coverage from private insurance companies.

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Definitions:

Auction Market

A marketplace where buyers and sellers enter bids and offers simultaneously; prices are determined through direct interaction of supply and demand.

Dealer Market

A financial market mechanism in which dealers buy and sell securities for their own accounts.

Money Market

A segment of the financial market where short-term financial instruments with high liquidity are traded.

Agency Costs

Expenses incurred from conflicts of interest between stakeholders and management, including monitoring and structuring costs.