Compensation insurance under retrospective rating plan

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Reference no: EM13970710

Dragon-Dungeon Builders, Inc. has decided to buy workers' compensation insurance under a retrospective rating plan. The insurer providing this retrospective rating plan must pay premium taxes to the state. To allow for the insurer's expense in paying these taxes,

a. the basic premium includes an allowance for premium taxes.

b. the retrospective rating plan includes a tax multiplier.

c. Dragon-Dungeon Builders, Inc. must post a tax bond.

d. taxes are collected at the beginning of the policy period, as part of the deposit premium.

Reference no: EM13970710

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