• When canceling, nonrenewing, or processing the renewal of a policy that is subject to audit, update client file.
  • Suspense for 60 days for completion of final audit.
  • If audit is not received after 60 days, request from carrier using company memo.
  • When audit is received, verify for accuracy and create invoice if necessary.
  • If audit is incorrect, contact carrier to determine appropriate course of action.
  • If audit is to be revised, notify carrier in writing immediately to prevent collection activity. Suspense for 30 days for receipt of revised audit.
  • Transmit audit documents and invoice to insured using standard form letter.
  • Suspense for 5 days for receipt of premium. (NOTE: This is critical since the time frame for payment of audit premiums to the carrier is very short and any uncollectable amounts must be promptly returned if the agency desires that the company pursue direct collection).
  • If premium is not received in 5 days, refer to accounting for possible direct collection activity. Update client file.
  • If audit is disputed by insured, contact carrier to determine appropriate course of action. Immediately notify carrier in writing of dispute and suspense for 30 days for receipt of revised audit.
  • Clear suspense.