The Scopes Manual is especially used to determine which of the following?

• A. Class codes
• B. Loss reserves
• C. Marketing classifications
• D. Payroll

Answer: (A)

The Scopes Manual is the guide for assigning the correct classification code to a business based on the work it performs. It describes each class so underwriters can match a company’s operations to the appropriate class code. Once the right class code is identified, the insurer uses the corresponding rate for that class and the insured’s payroll to determine premium. The manual doesn’t set payroll amounts itself, nor does it govern loss reserves or marketing classifications.