Manfred's Masonry is covered by a standard workers' compensation policy. One day Manfred is looking through his policy and he sees policy limits listed. He begins to worry that his employee's indemnity benefits will not be paid because of these limits. Which of the following statements is TRUE about Manfred's worries?
a. Manfred should not worry, his agent knows how to set the limits in his policy to cover all of the indemnity benefits being paid.
b. Manfred must be mistaken because there are no limits of liability listed anywhere on a standard NCCI workers' compensation policy.
c. Manfred's worries are understandable if the indemnity benefits being paid to his injured employees is higher than the limits expressed in the policy.
d. Manfred's worries are unfounded because the only liability limits shown in a workers' compensation policy are for Part Two - Employers' Liability.
Ans: d. Manfred's worries are unfounded because the only liability limits shown in a workers' compensation policy are for Part Two - Employers' Liability.
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