Alabama Property and Casualty Practice Exam

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Study for the Alabama Property and Casualty Test. Explore flashcards and multiple choice questions, each accompanied by hints and explanations. Prepare effectively for your exam!

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What occupational sickness limit is provided under Part Two-Employer Liability?

$50,000/Person
$100,000/Person
$150,000/Person
$200,000/Person

The correct answer is: $100,000/Person

The correct answer, which indicates a limit of $100,000 per person provided under Part Two - Employer Liability, aligns with the standard coverages typically offered under workers' compensation insurance. In Alabama, employer liability insurance is designed to protect employers against claims for workplace injuries and illnesses that may not be covered by the workers' compensation statutes. This coverage is crucial for employers, as it helps mitigate the financial risks associated with employee claims due to occupational diseases. The limit signifies the maximum amount that an employer can be liable for each individual claim related to occupational sickness. Such a specified limit helps ensure financial predictability for businesses while providing essential protection for employees against the costs of medical treatment and lost wages due to work-related health issues. Understanding this limit is vital for both employers and employees in comprehending their rights and responsibilities under workplace insurance policies in Alabama.