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A contractor's workers' compensation policy has an experience modification rate (EMR) of 1.25. If the base premium is $8,000, what is the actual premium the contractor will pay?

Correct Answer

A) $10,000

The actual premium is calculated by multiplying the base premium by the EMR: $8,000 × 1.25 = $10,000.

Answer Options
A
$10,000
B
$9,000
C
$8,000
D
$6,400

Why This Is the Correct Answer

The actual premium is calculated by multiplying the base premium by the EMR: $8,000 × 1.25 = $10,000.

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