13.2 Part One (Workers Comp) and Part Two (Employers Liability)

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

13.2 Part One (Workers Comp) and Part Two (Employers Liability)

Key Takeaways Explain This Topic AI

The Workers Compensation and Employers Liability Policy (WC 00 00 00 C) has two insuring agreements: Part One pays statutory benefits with NO limit; Part Two pays tort liability with dollar limits.

Part One obligation is fixed by statute, so it needs no limit; the insurer pays whatever the state act requires.

Part Two (Employers Liability) covers suits not subject to the comp statute — third-party-over actions, consequential bodily injury, loss of consortium, and dual-capacity claims.

Standard Part Two limits are 100,000 / 500,000 / 100,000 (bodily injury by accident each accident / by disease policy limit / by disease each employee).

The Information Page (Declarations) Item 3.A lists states under Part One; Item 3.C lists Other States Insurance.

Last updated: June 2026

One Policy, Two Insuring Agreements

The Workers Compensation and Employers Liability Policy — NCCI form WC 00 00 00 C — is filed by the National Council on Compensation Insurance and used nationwide. It contains two distinct insuring agreements:

Part One — Workers Compensation Insurance (statutory benefits)
Part Two — Employers Liability Insurance (tort liability)

The Information Page (the declarations) is the heart of the form. Item 3.A lists the states whose comp law the insurer will satisfy under Part One. Item 3.B shows the Part Two limits. Item 3.C lists Other States Insurance states. Item 4 describes the rating classifications.

Part One: Workers Compensation Insurance

Under Part One (Coverage A) the insurer promises to pay, on the employer's behalf, all benefits required by the workers compensation law of any state listed in Item 3.A. Its defining feature is that there is no dollar limit . Whatever the statute commands — including a multimillion-dollar catastrophic claim — the insurer pays in full.

Exam Key: Part One has no limit because the obligation is set by statute, not by the contract. The insurer simply steps into the employer's statutory shoes. Contrast Part Two, which always carries dollar limits.

Part Two: Employers Liability Insurance

Part Two (Coverage B) is true liability insurance. It pays sums the employer becomes legally liable to pay as damages because of bodily injury by accident or disease to an employee, when that injury is not covered by the comp statute but is still job-related. It fills the gaps where an employee (or someone on the employee's behalf) sues in tort. Typical Part Two claims:

Third-party-over (action over) : a hurt worker sues a machine maker; the maker then sues the employer for indemnity.

Loss of consortium : a spouse sues for loss of companionship.

Consequential bodily injury : a family member's injury flowing from the worker's injury.

Dual-capacity : the employer is also the product manufacturer.

Care and loss of services of the injured worker.

Part Two Limits: 100/500/100

Unlike Part One, Part Two carries three separate dollar limits shown in Item 3.B. The standard minimum limits are written as 100,000 / 500,000 / 100,000 :

Limit Applies to
Bodily Injury by Accident — each accident $100,000 per accident, all employees
Bodily Injury by Disease — policy limit $500,000 aggregate for all disease claims
Bodily Injury by Disease — each employee $100,000 per employee

Trap: The $500,000 disease limit is an aggregate policy limit , not per employee. The per-accident and per-employee figures are both $100,000 at the standard level. Higher limits can be purchased.