Workers CompensationQuestion 494 of 531
Part One of a workers compensation and employers liability policy shows no dollar limit of liability because:
a.The limit for it is shown in the employers liability part
b.The insurer pays whatever the compensation law requires
c.The employer agrees to pay any excess out of pocket
d.The insurer caps payment at the estimated annual payroll
Explanation
Part One is a promise to pay the statutory benefits, and because the legislature fixes those benefits the insurer cannot put a ceiling on them. The limits carried in the employers liability part are separate and apply to suits, not to statutory benefits. Payroll is the basis on which premium is rated, not a cap on what an injured worker can receive.
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