What is the calculated unmodified premium if a workers compensation classification code has a rate of $8.00 and the employer maintains a payroll of $200,000?

To find the calculated unmodified premium for workers' compensation insurance, you can use the formula:

Unmodified Premium = Rate x Payroll.

In this case, the classification code has a rate of $8.00, and the employer's payroll is $200,000. Plugging in these numbers:

Unmodified Premium = $8.00 x $200,000 = $1,600,000.

However, since rates are typically expressed in terms of per $100 of payroll, you need to divide the payroll by $100 before multiplying by the rate.

Thus, the calculation would be:

1. Convert payroll to hundreds: $200,000 / $100 = 2,000.

2. Now multiply by the rate: 2,000 x $8.00 = $16,000.

Therefore, the calculated unmodified premium is $16,000, making this the correct answer. Understanding this formula is key for correctly calculating premiums based on the applicable rates and payroll amounts in workers' compensation insurance.