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Question - Estimating an Annual Premium for a Workers Compensation Policy
Don is a contractor who installs garage doors for residential and business properties. He employs twenty installers and three clerical workers. Total estimated annual remuneration for his installers is $950,000. Remuneration for his clerical workers is $120,000. The rate per $100 of remuneration for his installers is $8.00. The rate for his clerical workers is $0.25. Don has an effective worker safety program and has had favorable loss experience since he started his business in 2003. As a result, he has an experience modification of 0.80. Due to his substantial payroll, he is entitled to a 12 percent estimated premium discount. What is Don's estimated annual premium for his workers compensation policy?
Calculating the Estimated Annual Premium of Don's Workers Compensation Policy.
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