For Insurers, the amount owed to the administrative fund is measured by which of the following?

Prepare for the Rhode Island Workers Compensation Adjusters Test. Utilize flashcards and multiple-choice questions, each equipped with hints and explanations. Successfully ready yourself for your exam!

Multiple Choice

For Insurers, the amount owed to the administrative fund is measured by which of the following?

The amount insurers owe to the administrative fund is based on a percentage of gross premiums for workers’ compensation or employer’s liability that are written or renewed in the prior calendar year, with a minimum payment of $50. The standard rate is 4.25 percent, but the director can certify a different return percentage, in which case the amount would be that certified percentage of gross premiums. This is why the correct choice reflects both the 4.25 percent and the possibility of another percentage certified by the director, plus the $50 minimum. The fixed percentages in the other options don’t capture the director’s ability to set a different rate.

The amount insurers owe to the administrative fund is based on a percentage of gross premiums for workers’ compensation or employer’s liability that are written or renewed in the prior calendar year, with a minimum payment of $50. The standard rate is 4.25 percent, but the director can certify a different return percentage, in which case the amount would be that certified percentage of gross premiums. This is why the correct choice reflects both the 4.25 percent and the possibility of another percentage certified by the director, plus the $50 minimum. The fixed percentages in the other options don’t capture the director’s ability to set a different rate.

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