• Answer:-

    A premium audit is a review conducted by an insurance company to verify the accuracy of policyholder information, primarily for policies where the premium is based on fluctuating factors like payroll, sales, or the number of employees. Common in workers' compensation and general liability insurance, this audit ensures that the premium paid by the policyholder matches the actual risk exposure encountered during the policy period. The process may involve examining the business's records, operations, and financial statements. Depending on the findings, the policyholder may receive a refund or be required to pay additional premiums. This ensures equitable premium payments aligned with actual risk.

Jan 18 2024

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