Texas Statutes and Rules Pertinent to Property and Casualty Insurance Practice Test

The main concept is the exclusive remedy: for work-related injuries covered by the workers’ compensation system, the employee’s remedy against the employer is limited to workers’ compensation benefits. This means benefits such as medical care and wage replacement are provided regardless of fault, and in exchange the employee generally cannot pursue additional damages (like pain and suffering) through a separate tort action against the employer. If a third party is responsible for the injury, the employee can sue that party, and the workers’ compensation insurer can be reimbursed through subrogation. Death benefits for dependents follow the same exclusive-remedy framework against the employer, with the option to pursue third-party claims if another party contributed to the death. Exceptions exist, such as cases where the employer has no workers’ compensation coverage or where a third party—not the employer—caused the injury, which can allow different remedies.