1. Worker’s
Compensation
Compensaton - given or
received as payment as
service or loss

2. The Demand for
compensation
 To
pay for the losses worker experienced.
 The
toll in human lives, injuries, medical
expenses.

3. Common Law Defenses
 1)
Assumption of risk – if injured he cannot
be indemnified for losses.
 2) Contributory negligence – Employer
could claim that the employee acted
carelessly.
 3)The fellow servant rule – could
manipulate and attempt to show that a
fellow employee was negligent and
cause the injury.

4. Early Worker’s Compensation
Law’s:
 Increase
employer responsibility by
removing Assumption of risk and fellow
servant rule.
 Under employer liability – injured worker
had to take his claim to court.

5. Worker’s Compensation Laws
 No
Fault Concept – balance in
right(employer&employee)

6. Types of laws
 Compulsory
– to accept it’s provisions and
to provide for benefits as specifies.
 Elective – an employer has right to
accept or reject participation. If employer
choose reject, he loses 3 common law
defenses.

7. Objective of worker
Compensation Laws
 1)
Replace lost income and provide
medical treatment promptly.
 2) Provide a single remedy without costly
litigation and delays.
 3) Relieve public and private charities of
financial drains.

8. Objective of worker
Compensation Laws
 4)
Encourage employer interest in
accident reduction and prevention.
 5) Restore earning capacity and work
capability of workers through
rehabilitation.
 6) Encourage open investigation of
accidents to prevent similar occurrences
in the future( not to find fault)

9. Benefit of Compensation
 Eligibility
Criteria
 Accident
and injury
 Employment

10. Types of Disability




Temporary Total Disability – applies to a
worker who is completely unable to work for a
time
Temporary Partial Disability – Who are unable
to perform their regular job duties but able to
work at a job requiring lesser capabilities.
Permanent Partial Disability – permanent
reduction in work capability but is still able to
retain gainful employment.
Permanent total Disability – a Worker injured in
the job and no longer able to work.

11. Benefits for Disability
-
to provide payments for medical
expenses, burial expenses and loss of
wages.

12. Loss of wages
 Discourage







malingering by worker
Medical
Burial
Rehabilitation
Payments for Impairment
Whole Man theory
Lost Wages theory
Loss of Potential Earning Theory

13. Financing
 Types



of Insurance
State Operated insurance
Private Insurance Policies
Self Insured Benefits

14. Kind of Rated and Discounts

Manual Rates – One applies premiums
directly from the rate book for the applicable
state.

Schedule Rates - Reduction in premium rate
by engaging in certain hazard reduction
activities were listed in schedule.
Experience rating prspective - refers to
establishing a rate for a future experience
period (e.g., upcoming policy year) based on
the experience of prior policy years.


15. Kind of Rated and Discounts




Experience Rating Retrospective – employers with
sufficiently large policies can affect their rates
while the policy is in force rather than waiting for 3
yrs also wokers can claim @ 1 yr.
Fixed rate premiums – Change from year to year
depending in the losses of all businesses within the
state for employment classification.
Premium Discount – Administrative cost are
relatively less than for small policies. Discount in
graduated state based on total premiums paid.
Competitive Premium rates – Competition among
insurance company was based on supporting
services for clients.

16. Administration
 Administration
of workers compensation
programs keeps cost down.
 Workers must provide the employer with
notice(usually written on standard form)
that he was injured on the job when it
approve all expenses will pay with
authorized.

17. Third Party Lawsuits
 Employees
cannot file suit against their
employers for job related injuries.
 Employee can sue a fellow worker.
 If an injured worker wins such a lawsuit
and receives an award that is larger than
that obtained through workers’
compensation

18. Product Liability
 Why
we should know this?
 So that we can act prudently,
professionally, and ethically at an early
stage to keep unnecessary risks
associated with products out of the
marketplace.

19. Theories of Liability



Warranty - addresses performance of a
product regarding implied or explicit claims
made for it by the manufacturer or seller
Negligence - involves the conduct or
behavior of a person or corporate body
regarding something they did or failed to do
Strict liability – deals with characteristics of
products that are unreasonably dangerous

20. PRODUCT LIABILITY EVIDENCE
 that
the product was defective
 that the defect existed at the time it left
the defendant’s hands
 that the defect caused the injury or harm
and was proximate to the injury

21. NEGLIGENCE
 Negligence
includes acts of omission
(failure to act) or commission (performing
an act).
 preventing harm

22. WARRANTY
 Implied
- user or consumer of a product
receives some guarantee regarding the
quality of a product


Merchantability - a product is fit for the
ordinary purposes for which such goods are
used
fitness for a particular purpose
 Express
-

23. STRICT LIABILITY
 must
breach of warranty be proven
 focuses
on the qualities of the product
that caused injury

24. Three fundamental elements
of evidence:
 that
the product was defective
 that the defect existed at the time it left
the defendant’s hands
 that the defect caused the injury or harm
and was proximate to the injury

25. DEFECTS
 Design
Defects - are unreasonably
dangerous characteristics of a product
resulting from decisions, calculations,
drawings, or specification of the design
process.
 Manufacturing Defects - occur in a limited
number of products of the same make.
“res ipsa loquitur” or principle that the
occurrence of an accident implies
negligence.

26. Defects in Instructions and
Warnings
 explain
how to use a product effectively
or safely.
 identify
dangers inherent to the product
or dangers that may result from its use or
misuse.