Premium Audit
Premium Audit is a review process in the insurance industry where auditors examine a company's records to ensure they're paying the correct insurance premium. Think of it like a checkup that makes sure businesses aren't paying too much or too little for their insurance. This is especially important for policies like workers' compensation, where rates depend on things like employee payroll and job types. It's similar to how a tax auditor reviews financial records, but specifically for insurance purposes. You might also hear it called "Insurance Premium Audit" or "Policy Audit."
Examples in Resumes
Conducted over 200 Premium Audit|Premium Audits annually for workers' compensation policies
Managed complex Premium Audit cases for large manufacturing clients
Led team of 5 Insurance Premium Audit|Premium Auditors across three state territories
Developed streamlined Policy Audit|Premium Audit procedures that reduced processing time by 30%
Typical job title: "Premium Auditors"
Also try searching for:
Where to Find Premium Auditors
Professional Associations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a disputed audit finding with a large client?
Expected Answer: Should demonstrate strong conflict resolution skills, deep understanding of audit procedures, and ability to explain complex findings in simple terms. Should mention documentation importance and escalation procedures.
Q: Describe a time when you implemented a new audit procedure that improved efficiency.
Expected Answer: Should show leadership in process improvement, team training capabilities, and understanding of both audit requirements and practical implementation challenges.
Mid Level Questions
Q: What records do you typically review during a workers' compensation premium audit?
Expected Answer: Should mention payroll records, job classifications, certificates of insurance for subcontractors, and overtime calculations. Should understand why each document is important.
Q: How do you determine proper classification codes for employees?
Expected Answer: Should explain the process of reviewing job duties, understanding classification guidelines, and applying appropriate codes based on actual work performed rather than job titles.
Junior Level Questions
Q: What is the purpose of a premium audit?
Expected Answer: Should explain that it's to verify actual exposure (like payroll or sales) matches what was estimated when the policy was written, ensuring correct premium charges.
Q: What's the difference between a physical audit and a voluntary audit?
Expected Answer: Should explain that physical audits involve visiting the business location and reviewing records in person, while voluntary audits are conducted through mail or online submissions.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of insurance policies
- Ability to review simple payroll records
- Knowledge of basic audit procedures
- Computer skills for reporting
Mid (2-5 years)
- Complex policy analysis
- Advanced classification knowledge
- Client relationship management
- Dispute resolution
Senior (5+ years)
- Team leadership
- Process improvement
- Complex audit management
- Training and mentoring
Red Flags to Watch For
- No knowledge of basic insurance terminology
- Poor attention to detail in calculations
- Lack of experience with financial documents
- Weak communication skills
- No understanding of workers' compensation basics
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