AD Banker Comprehensive Practice Exam

Which of the following is NOT a true statement regarding the States Second Injury Fund?

1. It limits the employers liability for a previously disabled employees second injury

2. It is funded by assessments against insurers and those who self insure

3. It promotes the employment of previously injured or handicapped workers

4. It is used to relieve the state of any burden for Workers' Compensation benefits

The correct answer is: It promotes the employment of previously injured or handicapped workers

The correct choice highlights that the role of the States Second Injury Fund includes activities beyond simply promoting employment for previously injured or handicapped workers. This fund primarily functions to mitigate the financial impact on employers when a previously injured employee sustains a subsequent injury. It encourages the hiring of individuals who might be seen as higher-risk employees due to past injuries by limiting the liability that employers face for additional injuries. While the fund does indeed support the notion of employing those with prior disabilities, the statement in question simplifies the fund's broader objectives and implications in the context of workers' compensation. It does more than just promote employment; it also actively ensures employers can confidently engage previously injured workers without the overwhelming fear of financial repercussions from potential future claims. The other statements accurately reflect the true nature of the fund; it indeed limits employer liability, is funded through assessments against insurers and self-insured entities, and assists the state in managing workers' compensation benefit costs.