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Do you have to comply with an insurance audit after the policy expires?
Wiki User
∙ 10y ago
Yes, it's spelled out in the contract you signed when you purchased the insurance policy.
You can refuse but you may find it difficult to buy insurance again in the future. It makes it look unreliable at best and at worst defrauding your own insurer.
Wiki User
∙ 10y ago
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Do you have to comply with insurance audit?
I am an insurance agent in Texas, and I know from personal experience that you do not have to comply with an audit. However, the insurance company can cancel your policy for "noncompliance". This is because your premiums are based on information that is collected from you by your agent, then submitted on your initial application. The insurance company will later try to verify this information via an audit, in order to adjust premiums. Sometimes insurance agents put inaccurate numbers on the application in order to get a lower quote and sell the policy. Also, a company could end up doing much better than they expected and growing. In either of these scenarios, the risks associated with conducting that business are much higher than the insurance company thought they would be when they assigned a premium to your policy.
What is composite rated Auto Liability insurance?
how is the audit calculated on a composite rated policy
If you cancel your general liability policy do you still have to participate in the audit for the previous year?
YES ! You have a contractual duty to do so. If you fail to do so it could create a coverage problem even after a policy is canceled. After many years in the insurance business i have not seen a problem of this nature occuring. The problem here is that with general liability a claim can occur but without any one being aware of the issue. These are referred to as INCURRED BUT NOT YET REPORTED. I have seen these type of issues before but they were not connect to a audit. I stongly recommend you comply with the policy provisions that says you have a duty to comply.
Is the trustee of an insurance policy required to notify minors that they are named as beneficiaries on a life insurance policy?
Usually yes. Most life insurance trusts have beneficiary notice requirements to comply with Tax Court decisions like the Crummry case which proded tax exclusions for predent interest gifts to the trusts where the benficiary gets notice of withdrawl rights. Its a complex area of trust law which the IRS likes to audit to see if such notices were sent out etc.
Can an insurance company that issued a general liability policy send a bill pursuant to an audit and request additional premiums on a policy that expired 6 months earlier?
Yes many Liability Policy are subject to audits which occur on policies after the term dates. The reason for this is that the original policy premium is generally based on estimates of of the exposure basis (i.e. payrolls, receipts, etc.) The insurance company is entitled to audit at the end of the policy term to adjust the premium to reflect the actual exposures.
How to do audit of insurance company?
What kind of audit are you talking about. Audit's are done all the time on insurance companies. The Department of Insurance audits insurance companies to make sure they have paid claims that they should and not pay claims that they shouldn't. Auditing and accounting firms audit the finances of insurance companies as most of them are publicly traded companies so the SEC also has to approve of their finances. Insurance companies are audited every year and all the time.
What are the advantages of audit report?
-it shows that the financial transaction of the company is true and fair and comply with (GAAP) it attracts investors
How many policy auditor audit score categories are there?
4
Can insurance carrieirs demand overpayment if they are no longer the carrier?
I am not sure what you mean by 'overpayment', but in many cases a policy is initiated with expected criteria. At the end of the policy period, the carrier may audit the criteria and if it is discovered that the expected premium was too low to cover the insurance company's exposure then they can demand the difference in the premium earned and the premium paid.
What policy item audits resource access?
Audit object access
Would a general liability Insurer cancel a policy after an audit upon finding out the company did not report all employees?
It would depend on how the policy was written as to whether or not a general liability insurer would cancel a policy after an audit where they found out that the company did not report all employees.
Can one get an independent audit of the general liability policy at no charge?
Yes, you can. Our company performs just such an audit and we are only paid if we obtain a refund. Our site is www.USA-Audit.com.
