Automate premium audit for payroll-based workers comp and GL policies

Verified steps

1. At policy inception, store the estimated auditable exposures (estimated payroll by class code for WC; estimated gross sales or payroll by classification for GL) and the corresponding deposit premium.
2. At policy expiration (or mid-term for larger accounts), send an audit request to the policyholder via API-triggered email or portal notification; request actual payroll records by class code (WC), gross sales figures (GL), or other exposure basis defined in the policy.
3. Receive the audit data via a structured intake form, payroll integration (e.g., ADP or Paychex payroll API if a direct integration exists — consult the payroll provider's partner portal for availability), or uploaded documents processed by an IDP pipeline.
4. Apply the carrier's audit rules: classify employees to the correct NCCI (or state bureau) class codes based on job duties, apply exclusions (e.g., executive officers, subcontractors with certificates of insurance), and calculate the audited exposure for each class.
5. Compute the audited premium using the filed rates and LCMs for each class code and compare to the deposit premium; generate an additional premium or return premium transaction accordingly.
6. Issue the audit statement to the policyholder with a detailed breakdown of exposures by class code and resulting premium adjustment; route contested audits to a physical or virtual audit review workflow.