California Self‐Insurance Plans (SIP) Exam

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In a scenario where serious and willful misconduct reduces compensation by 50%, the reduction is avoided if the injury results in death or what else?

The injury results in death Permanent disability of 70% or over Minor Death or permanent disability of 70% or over

Correct Answer:

Death or permanent disability of 70% or over

Explanation:

When serious and willful misconduct triggers a 50% reduction in compensation, there’s an exception for cases with very severe outcomes. The reduction is not applied if the injury results in death or in permanent disability of 70% or more. The idea is that if the injury is fatal or leaves the worker with a high level of permanent impairment, applying a punitive reduction would be inappropriate or overshadowed by the seriousness of the outcome. So the “what else” besides death is permanent disability rated at 70% or over.

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