Permanent disability (PD) benefits in California are paid based on what factor?
a.The employer's total annual payroll as reported in each governing class code on the final workers' compensation premium audit for the policy year
b.An impairment rating that measures how the injury permanently affects the worker's ability to compete in the labor market
c.The total dollar cost of the medical treatment the injured worker received, including physician bills, surgery, physical therapy and prescriptions
d.The number of years of seniority the worker had accrued with that employer
Explanation
Once the worker reaches maximal medical improvement, a physician assigns an impairment rating using the AMA Guides as adopted in California's Permanent Disability Rating Schedule. The rating, adjusted for age and occupation, produces a percentage that determines the number of weeks and the dollar value of permanent disability benefits.
Law Reference: Cal. Labor Code §4658 (Schedule for Rating Permanent Disabilities)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- What is a possible penalty when a California employer is found operating without required workers' compensation coverage?
- What is the California minimum limit typically required for Part Two — Employers Liability coverage?
- An injured employee unable to work while recovering from a workplace injury is entitled to temporary disability (TD) benefits. How is the TD rate generally calculated?
- Under California law, how soon must an employer provide a DWC-1 claim form to an employee after receiving notice of a workplace injury?
- After a claim is filed, what is the maximum time the insurer has to either accept or deny the claim before the law presumes the injury is compensable?
- Under California's ABC test (Labor Code §2775), a worker is classified as an employee — and therefore must be covered by workers' compensation — unless the hiring entity proves all three of which conditions?
Last reviewed: · editorial process
PrepPass team · Verified against California Property & Casualty Insurance License Exam · How we review