Voluntary Compensation Endorsement
Addition to a workers compensation insurance policy to cover payments to injured employees who are not covered by a state's workers compensation law. This endorsement provides employees who are not covered by the state law a choice of receiving workers compensation benefits or suing the employer. Under workers compensation laws, employers agree to supply, according to a formula, income lost by workers accidentally injured on the job, as well as medical and rehabilitation benefits and death and survivor benefits. In exchange, these benefits are to be the final obligation of the employer to compensate workers, or the exclusive remedy. However, there has been considerable erosion of the exclusive remedy concept since the early 1970s. Workers have been allowed to sue their employers for various types of on-the-job injuries. Each state has its own workers compensation law.
Popular Insurance Terms
Insurance company's net investment income divided by its invested assets. The greater the yield, the better the investments that are being made. ...
Non qualified deferred compensation plan for highly compensated employees or select group of personnel. The reporting and disclosure requirements of the employee retirement INCOME SECURITY ...
Disability in which a wage earner is forever prevented from working at full physical capability because of injury or illness. ...
Organization that calculates rates and develops insurance policies for its property and casualty member companies. The suggested rates are used by smaller companies where the loss ...
Coverage for the federal government in the event of loss due to dishonest acts of federal government employees. ...
Plan in which participant (employee) utilizes spending accounts to pay for health care costs not subject to reimbursement from a health insurance policy or health care provider. The ...
Adjustment of premiums resulting from the use of experience ratings. Experience rating plans take the form of retrospective plans or prospective plans. Under retrospective plans, premiums ...
Amount credited to the cash value of an insured's life insurance policy above the minimum interest rate it guarantees. This payment is of extreme importance to a policyowner since it will ...
Contract for retirements benefits in which an entire group of employees is underwritten, as opposed to a single annuity for each employee. Each premium pays for an increment of a paid-up ...
Have a question or comment?
We're here to help.