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A Michigan contractor with 12 employees has a workers' compensation experience modification factor of 1.25. If the base premium is $18,000, what is the adjusted premium?

Correct Answer

D) $22,500

Adjusted premium = Base premium × Experience mod = $18,000 × 1.25 = $22,500

Answer Options
A
$20,250
B
$14,400
C
$18,000
D
$22,500

Why This Is the Correct Answer

Adjusted premium = Base premium × Experience mod = $18,000 × 1.25 = $22,500

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