What do the items/fees listed on my statement mean?

At MEM, we want you to understand exactly what you’re paying for. Some common policy charges you may see on your billing statement include:  

• Audit Premium – Premium based on the results of an audit that reflects an adjustment to the original estimated premium for the policy year. Adjustments are based on actual payroll and classification exposure.  
• Expense Constant – An administrative fee applied to every policy for the cost of initializing the policy at the beginning of each policy term. The cost varies by state.    
• Late Reporting Fee – A per policy fee is assessed when payroll reports are submitted past the due date.  
• Payment Reversal Fee/Returned Check Fee – A per policy fee of $20 is assessed if your check is returned unpaid for any reason. Returned checks may be re-presented electronically.  
• Policy Late Fee – A per policy fee of $25 is assessed if the outstanding balance is not received by the due date.  
• Premium – Work comp premiums are tied directly to payroll totals. Amounts are based on every $100 of payroll in each employee class code.  
• Service Fee – A per policy fee of $5 is assessed when a billing statement is generated with outstanding premium due.  
• Terrorism Premium – A federally mandated surcharge of two percent of every $100 of payroll to cover losses that may occur in the event of certified acts of terrorism. 

A description of all charges can be found by viewing the back of your billing statement.