Voluntary Market Audit Standards
Under the terms of the workers compensation policy, a carrier or the ICRB may audit the insured's records within 3 years after the policy period ends, per the Forms Manual of Workers Compensation and Employers Liability Insurance approved by the Indiana Department of Insurance. Specifically, Part Five-Premium, Rules G. and E speak to this:
Rule G. Audit: "You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision."
Rule E. Final Premium: "The final premium will be determined after this policy ends by using the actual, not the estimated, premium basis and the proper classification and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the balance. If it is less, we will refund the balance to you."