WebCE Insurance Practice Exam

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What is the primary purpose of workers' compensation benefits?

To compensate for all workplace lawsuits

To provide medical benefits and wage replacement for work-related injuries

Providing medical benefits and wage replacement for work-related injuries is what workers' compensation is designed to do. It ensures injured workers receive the medical treatment they need and a portion of their wages while they recover, without having to prove fault. This system often serves as the exclusive remedy, meaning employees typically can’t sue their employer for damages related to the injury. It isn’t meant to fund retirement benefits, and it doesn’t insure employers against every possible injury—its purpose is to support workers with medical care and income while on the job.

To fund retirement benefits for injured workers

To insure employers against any form of injury

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