Sometimes, the results of a Premium Audit need to be reversed, because they were incorrect, and the policy should be restored to the premiums that were in force prior to the audit being performed. This does not happen very often, but in case it does, it is necessary to perform a "Reverse Audit."
To process a Reversed Audit:
Access the client's policy for which the Initial Audit is being done.
Select Premium Audit.
Once the Transaction Information screen displays, enter / select the following:
Transaction Effective Date: Defaults from the system date. Enter the Transaction Effective Date of the new business policy.
Date Effective: Defaults from the system date; change if necessary.
Transaction Type: Select Premium Audit.
Transaction Source: Indicate the individual or entity initiating the transaction from the combo box.
Transaction Reason: Choose Reversed Audit from the combo box.
Remarks: Enter any additional narrative, if necessary.
Click Submit.
The system displays a validation message. Answer Yes to the question: "This will reverse the current audit. Do you want to continue?"
Rate / Issue the transaction.
A new audit image is generated. The full term premium is backed out as are the CPremium and DCPremium. When issued, the status of the previous audit is set to "Revised Audit" and the status of the current audit is set to"Reversed Audit."
The reversed image can be viewed on the Policy History screen like other Diamond transactions.