I don't mind the audit as l have nothing to hide .And yes it helps me determine where l stand as far as insurance is concerned and that l am covered. Since audit is to make sure that l have paid them correct amount . It also needs to be on audit that if l overpaid money is returned. This should be a law not on option. What's fair is fair. Otherwise it's pure insurance monopoly . Also audit needs to be done every year so you don't go for many years unchecked and insurance company says .Oooo you owe us lots of money and pay up.
Thanks for your comment @Croquest 87. Some carriers do return premiums if the audit determines that the premium basis was lower than estimated, but they are in the minority. You should ask your independent agent that question up front so that you can know how the carrier quoted handles audits before you purchase the policy.
Hi. That depends on a few factors. We don’t see them regularly go back beyond the prior policy period but there may be circumstances where they can go back further. I don’t think I’ve seen a situation where they’ve gone back farther than 5 years.
