Voluntary Compensation Endorsement
Definition of "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
Money expended with the object of profit. The goal of an insurance company is to invest in assets with a rate of return greater than that to be paid out as benefits under its policies. ...
Retirement plan under which contributions are fixed in advance by formula, and benefits vary. These plans are often used by organizations that must know what the cost of employee benefits ...
Acceptance of an application for an insurance policy by the insurance company, indicated by the signature of an officer of the company on the policy. The officer, who must have signature ...
Real property (structure (s) attached to the land) that is occupied and/or is under the care, custody, or control of an individual, individuals, or an organization for which an insurance ...
Flat amount added to the basic premium rate to reflect the cost of issuing a policy, establishing the required records, sending premium notices, and other related expenses. ...
Reductions in the value of property due to physical damage or destruction. ...
Value of an insurance company or other company that consists of capital and surplus and an estimated value for business on the company's books. ...
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 ...
Right to insurable interest in property such as the right of a secured creditor in the property pledged as security. ...
Have a question or comment?
We're here to help.