Premium Audit Statement is One Piece of the Puzzle
The Premium Audit Statement or bill is one of the documents that will show the final numbers for any policy year. What is the other document to match to the Premium Audit Statement to make sure the final numbers are correct?
This is a question that I posed in my recent Insurance Academy (R) presentation on Workers Comp Premium Audits. The most popular answer is the Workers Comp policy. However, the policy is more of an initial document that a document of finality.
Surprisingly, the document that is the most “final” other than the Premium Audit Statement is the corresponding work comp rating worksheets. When I first heard that answer many years ago, I refused to believe it. How can the worksheet have the final numbers on it? Then I realized, the worksheets are actually the last document produced in the process.
One would have to say those are the two documents of finality unless an employer disputes either one of those two documents.
The Workers Comp policy that just expired will not be on the rating sheets until the next year. Patience is a virtue in this situation.
Matching the worksheets to the Premium Audit Statement should not be that difficult in most cases. If there are discrepancies in the numbers, then a full review is warranted in most cases.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com