Multiple of Coverage and Compensation Calculation Method Example

The calculation method and other settings defined for a rate determine how and when the rate is calculated. For example, the rate might be calculated prior to enrollment, upon enrollment, or after enrollment has been completed.

Scenario

The example in this topic shows the rate calculation details when you use the Multiple of Coverage and Compensation calculation method.

Inputs to Calculation	Calculated Rate	Calculation Details
Multiplier: 0.0001 Multiple of Compensation Operator: Multiply by Compensation Amount: 25,000 (value derived by applying a Compensation Factor of Stated Annual Salary) Multiple of Coverage Operator: Per ten thousand Coverage Amount: 100,000	25	[(.0001 * 25,000) / 10,000] * 100,000