Audit Fundamentals
When does a policy get audited
After the policy expires
Where do you find the Auditors worksheet?
In EDM under the MISC tab
Where do you find the class codes, exposures and rates in the Binder Letter?
Classifications Page (CSGA 408)
When final premium on the audit is higher than estimated premium on the policy, it results in this
What is an additional premium? (AP)
Who assigns the monthly audits
Your Team Lead
What is the procedure when an agent/insured request and auditors worksheet
CSU associates are not permitted to release them to the agent. The insured needs to provide us a written request on their company letterhead requesting audit worksheets. This request is then forwarded to PremiumAudit2@cinfin.com.
Where will you find any specific UW instruction such as rate changes or exposure allocations
In the BMS Comments and/or email
What is the primary purpose of a premium audit
To find actual exposures
When final premium on the audit is lower than estimated premium on the policy, it results in this
What is a return premium? (RP)
You have a DB audit with a payment plan of Quarterly what is the PPF%
5%
You can find this in the Special Provisions - Premium page (page 8 in the policy)
Minimum Earned Premium (MEP)
When processing an Audit in ESteem, how many days do you go back into the auditing term to process
1 day
These are the premium/exposures that can be audited
What is Payroll, sales and Total cost
What is it called when the insured disagrees with the auditors' results.
A dispute
When calculating the deposit premium do you include form flat fees
No
When are Agency bill audits processed?
AP Agency audits are processed by the 15th of every month
Name a RED-LIGHT STOP when processing an Audit
1. Class Codes do not match
2. auditor listed Payroll instead of sales
When adding the deposit premium what codes do you use
Only the codes that have been audited
The person that needs to be notified immediately if the agent/ insured disputes an audit
The Underwriter
What is the next step when your premium on your Endorsement Change Request does not match the premium on your audit spreadsheet
Check math for the PPF and show work on the audit spreadsheet
Direct Bill Audit can be processed in this time frame
What is anytime during the month.
What is marked for Flat Charge/ Fully Earned and Valid for loss, when inputting your audit manuscript?
YES
YES
Where do you find the information on the auditor's worksheet that shows the actual findings for the exposures
In the GL Total column on the auditor's worksheet
This is what happens when the insured does not pay their additional premium for their audit
The audit will go into collections
I have a RP audit MEP is 75% how much is returned to the insured
up to 25%