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    Safety and Health Management - Part25

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    Karen
    XYZ Contractors had a MOD rate of 1.3 in 2003. Their adjusted workers' compensation insurance premium for two classifications increased from $261,500 to $340,000 due to the MOD rate. To replace the additional $78,500 premium amount while maintaining a 5% profit margin, XYZ would need $1,570,000 in additional business volume.

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    Safety and Health Management - Part25

    Uploaded by

    Karen
    47 views1 page
    XYZ Contractors had a MOD rate of 1.3 in 2003. Their adjusted workers' compensation insurance premium for two classifications increased from $261,500 to $340,000 due to the MOD rate. To replace the additional $78,500 premium amount while maintaining a 5% profit margin, XYZ would need $1,570,000 in additional business volume.

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    Safety and Health Management_Part25

    Original Title

    Safety and Health Management_Part25

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    XYZ Contractors had a MOD rate of 1.3 in 2003. Their adjusted workers' compensation insurance premium for two classifications increased from $261,500 to $340,000 due to the MOD rate. To replace the additional $78,500 premium amount while maintaining a 5% profit margin, XYZ would need $1,570,000 in additional business volume.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views1 page

    Safety and Health Management - Part25

    Uploaded by

    Karen
    XYZ Contractors had a MOD rate of 1.3 in 2003. Their adjusted workers' compensation insurance premium for two classifications increased from $261,500 to $340,000 due to the MOD rate. To replace the additional $78,500 premium amount while maintaining a 5% profit margin, XYZ would need $1,570,000 in additional business volume.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    XYZ Contractors MOD Rate in 2003 = 1.

    3
    Classification Description Code Payroll Base Rate/Premium Adjusted Rate/Premium
    Concrete - Floor/Driveway 5221 $500,000 $1.26/$63,000 $1.64/$$82,000
    Carpentry - Multiple Family Dwel. 5651 $500,000 $3.97/$198,500 $5.16/$258,000
    $261,500 $340,000

    Adjusted Premium = $261,500 + $78,500 = $340,000

    If the company has a profit margin of 5%,


    additional business volume to replace
    $78,500 would be $1, 570,000!

    25

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