Assigned Risk/Producer Fee
Indiana uses the Graduated A Scale (see Assigned Risk Supplement to Basic Manual, Appendix-8, Exhibit-C) for producer fees (commissions) earned in the assigned risk market. The fee table is shown below. Indiana producers receive commission on the premium generated by the assigned risk surcharge (25% for policies over $2,500 in modified premium) since the surcharge is part of standard premium. Coal mine non-ratable disease element is excluded from the surcharge since the element is for federal, not state coverage.
For example, the producer fee for a $10,000 policy is $430 and is calculated as follows:
First 1,000: 1,000 x 8% = 80
Next 4,000: 4,000 x 5% = 200
Next 95,000: 5,000 x 3% = 150
Total = 10,000 premium and 430 fee