Which of the following best describes who pays the additional benefits when a worker with a prior injury suffers a new injury?

• A. Second injury fund
• B. Workers' comp fund
• C. State unemployment insurance
• D. Employers' catastrophe fund

Answer: (A)

The situation tests understanding of how workers’ compensation handles prior injuries when a new injury occurs. When a worker already has a permanent impairment and then suffers a new work-related injury, the combined disability can create higher benefits than the new injury alone would justify. The Second Injury Fund exists to handle that incremental liability and pay the additional benefits, so the employer isn’t faced with an overwhelming increase in costs. This mechanism encourages employers to hire workers with preexisting disabilities and ensures the employee receives appropriate total benefits.

The other options don’t fit because the general workers’ compensation system pays for injuries as they occur, unemployment insurance covers unrelated wage loss, and an employers’ catastrophe fund isn’t the mechanism used in this scenario.