How should a claim be reserved for indemnity for a Safeway employee who had 10 weeks of temporary total disability?

How should a claim be reserved for indemnity for a Safeway employee who had 10 weeks of temporary total disability?

• A. $6000
• B. $7500
• C. $9900
• D. $16000

Answer: (C)

To determine the appropriate reserve for indemnity for a Safeway employee who experienced 10 weeks of temporary total disability, it's essential to consider the calculations related to the employee's wages and the compensation provided for the period of disability. In many cases, indemnity benefits are calculated based on a percentage of the employee's average weekly wage. For example, if the average weekly wage is considered, and the temporary total disability benefits are typically set at two-thirds of that wage, you can calculate the total lost income during the 10-week period by using this formula. If we assume the average weekly wage yields a compensation amount that corresponds to the correct choice of $9900 when these calculations are applied for 10 weeks of benefits, then that would include the necessary benefit amount during the period of inability to work due to the injury. This aligns with standard methods used in workers' compensation to reserve claims for temporary total disability, ensuring the employee receives a fair amount that reflects their lost wages while providing a safety net during recovery. Thus, selecting $9900 as the reserve indicates a proper understanding of how to calculate indemnity for a temporary total disability claim based on the given conditions.

To determine the appropriate reserve for indemnity for a Safeway employee who experienced 10 weeks of temporary total disability, it's essential to consider the calculations related to the employee's wages and the compensation provided for the period of disability.

In many cases, indemnity benefits are calculated based on a percentage of the employee's average weekly wage. For example, if the average weekly wage is considered, and the temporary total disability benefits are typically set at two-thirds of that wage, you can calculate the total lost income during the 10-week period by using this formula.

If we assume the average weekly wage yields a compensation amount that corresponds to the correct choice of $9900 when these calculations are applied for 10 weeks of benefits, then that would include the necessary benefit amount during the period of inability to work due to the injury.

This aligns with standard methods used in workers' compensation to reserve claims for temporary total disability, ensuring the employee receives a fair amount that reflects their lost wages while providing a safety net during recovery. Thus, selecting $9900 as the reserve indicates a proper understanding of how to calculate indemnity for a temporary total disability claim based on the given conditions.