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 |