In manual premium calculation, which elements are used?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Certified Authority of Workers Compensation (CAWC) Exam with multiple choice questions and in-depth content. Each question comes with detailed explanations and helpful hints to ensure you are ready for your certification.

Multiple Choice

In manual premium calculation, which elements are used?

Explanation:
In manual premium calculation, the amount charged is driven by payroll exposure and the classification rate assigned to that exposure. The actual calculation uses payroll divided by 100 and then multiplied by the classification factor (the rate) for the job class. The governing class code helps identify which classification and rate apply, but it isn’t the separate input used in the arithmetic itself. The number of employees isn’t a direct input in this calculation, since premium is based on payroll exposure rather than headcount.

In manual premium calculation, the amount charged is driven by payroll exposure and the classification rate assigned to that exposure. The actual calculation uses payroll divided by 100 and then multiplied by the classification factor (the rate) for the job class. The governing class code helps identify which classification and rate apply, but it isn’t the separate input used in the arithmetic itself. The number of employees isn’t a direct input in this calculation, since premium is based on payroll exposure rather than headcount.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy