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

In workers' compensation, coverage is tied to the employment relationship. It applies to people who are in the service of another under a contract of hire, whether the contract is written or implied. This means the worker is under the employer’s direction and receives compensation for the work performed. Independent contractors aren’t considered employees; they operate under contracts to provide services and aren’t automatically covered by the employer’s workers’ compensation policy. Unpaid volunteers also aren’t employees because they don’t receive wages, so they’re generally not covered. So, the description that best matches who is covered is the one that defines employment as someone in the service of another under a contract of hire.