Answer Key
Legal problems – Comprehension Check
- Which of the statements is true?[There is no 100% way to detect a fraud without a clear proof.]
There is no sure-fire way to identify fraud without proof, but there are red flags. - What did the owner of Waco do when she had suffered too many compensation claims in one year? [tried and investigated himself]
The claims were so costly that the owner feared for her business. Desperate, she spied on her injured employees outside their chiropractor's office to see if they were committing workers' compensation fraud. - “Those costs trickle down to all employers in the form of higher premiums.” What does this sentence mean? [Employers have to pay more for insurance]
premium - the amount paid or payable for an insurance policy. - Which of the expressions below is missing in this sentence: “Statistically, the newer the employee is, [the more likely] the claim is fraudulent.”
New employee. Statistically, the newer the employee is, the more likely the claim is fraudulent, especially if other red flags appear. - There is one mistake in the following sentence from the text. Which of the expressions below has the mistake? “They can learn to identify fraud and take a proactive approach for fighting it.” [approach for fighting it]
They can learn to identify fraud and take a proactive approach to fighting it. - Which of the things below is one of the principles of a sound hiring policy? [telling employees that compensation fraud is bad for everyone in the company]
Educate, don't threaten. Explain that workers compensation fraud hurts everyone, not just the insurance carrier - Which of the expressions below is missing in this sentence: “The injured worker [may describe] the accident differently to the employer and the doctor. “
The injured worker may describe the accident differently to the employer and the doctor, or witnesses' accounts may differ from the injured worker's account. - Which of the expressions below is missing in this sentence: “Stay in touch. Keep regular contact with employees who are off work [due to] an injury.”
Stay in touch. Keep regular contact with employees who are off work due to an injury. - “Double-dipping” is [when an employee is collecting benefits while he is working on another job]
The employee may be working another job while collecting benefits. This practice, called “double-dipping,” constitutes fraud. - Under the state law [employees do not have to work until the doctor says they can]
Under state law, injured employees don't have to get back on the job until the doctor releases them to work.