What does Paragraph B of the workers' compensation insuring agreement state?

• A. It addresses the right and duty to defend.
• B. It requires premium adjustments by state law.
• C. The insurer will pay promptly when due the benefits required by the workers compensation law.
• D. It defines the policy period.

Answer: (C)

The key point is the insurer’s obligation to pay benefits promptly when due under the workers’ compensation law. This provision ensures that an injured employee receives the mandated medical and wage-replacement benefits without unnecessary delay, which is the core purpose of workers’ compensation insurance. It distinguishes itself from other elements like defense rights (which relate to liability or third-party claims handling), premium adjustments (administrative pricing matters), or the policy period (a basic contract term). In practice, when a covered injury occurs, benefits required by state law should be paid promptly according to the statute and the policy’s terms.