Note: As of Version 520, Premium Audit Transactions can only be issued on the following Commercial Lines - Commercial GL, Commercial Garage, Workers Compensation and Commercial BOP.
Premium Audit Transactions is functionality that allows a carrier to review (or audit) policies at the end of a policy term or cancellation of a policy for the purpose of verifying a policyholder’s financial records to confirm that the correct premium was charged on a policy.
In Diamond, there are four (4) types of Premium Audit Transactions:
Initial Audit: Once an audit has been assigned to a policy, this transaction is used at the end of a policy's term to determine the actual financial of the policy. It is used to adjust the policy and charge either additional premium or credit return premium.
Revised Audit: This allows a carrier to "revise" an existing audit if additional information is provided from the policyholder.
Reversed Audit: This allows a Premium Audit to be reversed if results of a Premium Audit are incorrect.
Reinstated Audit: If a Reversed Audit was issued in error, this type of audit allows it to be reinstated.
Prior to doing any of these transactions, users must be given the following authorities in Diamond Administration: User Setup - Policy Processing group:
Audits: Allows the user to process Premium Audit transactions. Users will be able to do normal audits and revise audits.
Reverse Audit: Allows the user to process Reverse Audits and Reinstate Reversed Audits.
Issue Audit: Allows the user to issue all types of Premium Audit transactions.
Save Audit Workflow: Allows the user to save changes to the Audit Control screen.
Additionally, if your company will be using outside personnel to do Premium Audits, you can set these individuals up as "Outside" auditors in Diamond Administration: Audit Personnel - Outside Auditors.