Mississippi Business and Law Contractor Practice Exam

The term "workman's compensation" refers to a form of insurance that provides wage replacement and medical benefits to employees who are injured while performing their job duties. This system is designed to support workers by covering the costs associated with their injuries, such as medical expenses and lost wages due to time away from work. It serves as a legal framework that protects both employees and employers, ensuring that injured workers receive necessary support while also limiting the liability of employers in case of workplace accidents.

Workman's compensation operates under specific state laws, which outline the conditions under which benefits are provided, the eligibility criteria for workers, and the processes for claiming these benefits. By offering this safety net, workman's compensation helps to reduce the financial burden on injured employees and fosters a more secure working environment.

In contrast, the other options refer to different financial mechanisms: insurance for unpaid wages does not exist under the term workman's compensation; retirement plans for workers are designed for future income rather than immediate injury-related needs; and bonus systems incentive additional pay for performance but are unrelated to compensation for job-related injuries. Thus, the primary function of workman's compensation is best captured in the provision of wage replacement and medical benefits for injured workers.