Rules for Developing the Correct Premium (ABEN)

Rules for Developing the Correct Premium (ABEN)

Course #106088 | 2 P&C

Insurance premiums are based upon certain exposures which cannot be definitively known at policy inception, only estimated. Since the basis of premium is only estimated, the insurer may not be paid the correct premium for the insured exposure. To assure proper premiums, a premium audit is performed after the policy period ends.

Since agents are often caught in the middle of an audit, they need to understand all the facets involved.

Learning Objectives:

• Discuss the various entities and agencies involved in creating premium audit rules and guidelines;
• Discuss who is and is not included in audits;
• Discuss the who, what, and how of workers' compensation audits;
• Discuss the who, what, and how of commercial general liability audits;
• Discuss some highlights of commercial auto and garage audits; 
• Learn the "ABC's" or rules of premium audits.