A single workers compensation classification has $86,600 of eligible payroll and a supplied manual rate of $6.85 per $100. Before any modifiers, discounts or other charges, what manual premium results?
Correct Answer
C) $5,932.10
The unmodified manual premium is $86,600/100 × $6.85 = $5,932.10. The rate is per $100, so first divide payroll by 100. This excludes experience modifiers, discounts, assessments and other policy adjustments.
Why This Is the Correct Answer
The unmodified manual premium is $86,600/100 × $6.85 = $5,932.10. The rate is per $100, so first divide payroll by 100. This excludes experience modifiers, discounts, assessments and other policy adjustments.
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