Underwriting
Premium Audit
A post-policy-period review conducted by the insurance carrier to verify that the premium charged accurately reflects the insured's actual exposure during the policy term. For law firm policies, the audit may examine the number of attorneys, revenue, practice area distribution, and other rating variables that were estimated at policy inception. If the audit reveals a material difference between estimated and actual exposures, the carrier will issue an additional premium charge or a return premium credit.
Related terms
UnderwritingThe process by which an insurance carrier evaluates the risk presented by a prospective insured and ...Risk ClassificationThe underwriting process of assigning a law firm to a rating category based on factors that predict ...Minimum PremiumThe lowest premium amount an insurance carrier will accept for issuing a policy, regardless of the i...