Question

 If a loss is not covered by a primary insurance policy, it might be covered by:

 An exclusion in the policy

 An ancillary form

 An excess insurance policy

 Statutory law

 An experience modification factor in a workers' compensation insurance policy is calculated based upon:

 Prior losses

 Future expected losses

 Payroll

 Credit worthiness

An employer with a lower experience modifier will pay:

Less in premium than a similar employer 

More in premium than a similar employer 

The same in premium as a similar employee 

Twice as much in premium than a similar employer

 An insurance agent primariy represents which of the following principals:

 The insurer 

 The insured

 The insurance broker

 The business

Answer 1

1. Answer: An excess insurance policy

Explanation:
Excess insurance policy provides coverage for the specific losses that are not covered by the primary policy. Hence if a loss is not covered by a primary insurance policy, it might be covered by an excess insurance policy. I cannot be covered using exclusion in the policy, an ancillary form or a statutory law.

2. Answer: Prior losses

Explanation:

An experience modification factor in a worker’s compensation is calculated based on the prior losses and the losses that may happen in the future. The expected losses in future are also dependent on the prior losses the company has actually incurred. If the frequency of prior losses is high it shows the chances of higher losses in future. If there is less loss incurred in past due to improved safety features, the expected loss in future also would be less.

3.Answer: Less premium than a similar employer

Explanation:

The worker’s compensation premium is calculated by multiplying with the experience modifier or EMR. The lower the EMR, the lower the company’s premium would be. Hence an employer with lower EMR will pay less in premium than a similar employer.

4. Answer: The insurer

Explanation:

An insurance agent primary represents the insurance company as the agent acts on behalf of the insurance company and the authority has been given by the insurance company. The insurance company is also known as the insurer.