IRMI Update Quiz
Which of the following is not an advantage to an insured when using a large deductible workers compensation program?
A. Improved cash flow compared to guaranteed cost insurance
B. Access to insurer-provided claims handling services
C. Avoidance of fronting fees
D. Guaranteed reduction in total workers compensation losses
Correct Answer: D. Large deductible programs improve cash flow, retain insurer services, and avoid fronting fees, but they do not reduce the ultimate cost of losses. Losses still occur and must be paid; the program changes how they are funded, not whether they happen. Learn more with a 2-minute read on the advantages and disadvantages.
