FAQs - National Society of Insurance Premium Auditors

FAQs

 

 

 


Frequently Asked Questions


 
Q. What gives you the right to look at my books and records?

A. Your insurance policy is a legally binding contract between you and your insurance carrier. One of the conditions of that contract states, "You will let us examine and audit all of your records that relate to this policy."




Q. I work alone. The auditor has requested payroll records and since I have no employees, I have no payroll records. Is the audit still necessary?


A. Yes, the auditor will need to verify that you do indeed work alone. To do that, the auditor will look at the disbursement records, check stubs, or possibly income tax returns. The auditor is also required to look forward and review your relationship with any independent contractors who you may have used during the policy period.




Q. I canceled my policy and no longer have insurance with your company. Do I need to be audited?


A. Yes, remember the purpose of the audit is to review your actual business activity from a previous period during which your policy with the insurance company was still in force.



Q. My company offers a flexible benefit plan (cafeteria plan, 401k plan) to my employees. Are the non-taxable earnings included as payroll on my audit?

A. Yes, employee contributions to these plans taken as payroll deductions are included, even though they are non-taxable. Any matching payments made by the employer to one of those plans would not be included.

 


 



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PO Box 936 | Columbus, OH 43216 | nsipa@nsipa.org | 888-846-7472
     
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