Sample Letter #1 – Disclosure that policy is subject to audit

August 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Liability Policy

Dear Mr. Client:

We are enclosing your liability policy for the period September 1, 2001 to September 1, 2002.
Please review your policy carefully and advise us immediately if any changes are needed. Please note that this policy has been issued with a provisional premium, meaning the actual final premium will be determined after the policy expires based on an audit of your (sales)(payroll) during the policy period.
If your (sales)(payroll) is lower than estimated, you may receive a refund. However, if (sales)(payroll) exceeds your estimate, you may owe the insurance company additional premium.
If you have any questions or concerns after reviewing your policy, please contact our office. We appreciate the opportunity to arrange this coverage on your behalf.

Sincerely,

 

Andy Agent

Sample Letter #2– Audit transmittal

August 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Liability Policy

Dear Mr. Client:

We are enclosing a final audit for the above policy. You may recall that when the policy was issued, we asked that you estimate the payroll and sales that would occur during the period June 1, 1999 and June 1, 2000.
Your original estimate for payroll was $100,000 and for sales was $250,000. The actual amounts were $125,000 in payroll and $275,000 in sales. You had a great year!
We have enclosed our invoice for the additional premium due of $435.00. This payment is due no later than August 11, 2001. If payment is not made within this time frame, your current policy may be cancelled. Please send your payment immediately to avoid cancellation of your protection.
If you wish to discuss this invoice, please feel free to contact our office.

Sincerely,

 

Andy Agent