Premium audit and other policy transactions

The following table describes the interaction between final audit and premium report and other policy transactions.

Policy transaction	Description
Audit	Premium Report Policy Transactions If you have an open report and final audit is already billed, then the report cannot be billed because the final audit already finalized the premium for this period. This situation occurs if the auditor does the final audit early and completes it before receiving the last report.
Submission	Final Audit and Premium Report Policy Transactions According to the configuration settings, PolicyCenter schedules final audit and appropriate premium reports when you issue the policy.
Issuance	Final Audit and Premium Report Policy Transactions If changes are made to the policy term, then PolicyCenter schedules final audit and appropriate premium reports when issuing the policy.
Renewal	Final Audit and Premium Report Policy Transactions PolicyCenter schedules a final audit and appropriate premium reports when renewing the policy.
Policy Change	Final Audit Policy Transaction Policy changes impact final audits as follows: Scheduled audits – If the policy change amends the policy term, PolicyCenter replaces the scheduled audit with an audit for the new policy term. In Progress audits – PolicyCenter preempts and updates the In Progress audit. The updated audit includes the policy changes, such as classification or policy term changes. Completed audits – PolicyCenter reverses the Completed audit and schedules an audit for the full policy term or cancellation period. If the Completed audit has an In Progress revision, PolicyCenter withdraws the revision. Premium Report Policy Transaction Scheduled premium reports – if the policy change amends the policy term, PolicyCenter replaces the audit schedule with the appropriate premium report periods. In Progress premium reports – If there is an open premium report, a policy change preempts the report and adds in the changes. Completed premium reports – A policy change does not impact a Completed premium report.
Cancellation	Audits are affected when the policy reaches a Canceled status. Cancellations may be completed with a scheduled future effective date or canceled immediately. Policies canceled immediately are given a Canceled status. Policies with Scheduled cancellations reach a Canceled status on the cancellation date. Final Audit Policy Transaction When the policy changes from a Canceling to a Canceled status, audits are impacted as follows: If the policy is canceled flat, no audit is required. PolicyCenter removes any scheduled final audit or withdraws any open final audit. If the cancellation is midterm: Scheduled audits – PolicyCenter replaces the full term audit in the schedule with an audit for the cancellation period, including assigning the configured audit schedule. The cancellation calculates the cancellation amount and sends this amount to the billing system.The cancellation also sends a message to hold these funds until final audit completes. In Progress audits – PolicyCenter preempts the In Progress audit. PolicyCenter amends the dates and displays only classifications that apply to the cancellation term. Completed audits – PolicyCenter reverses the Completed audit and schedules an audit for the cancellation period. If the Completed audit has an In Progress revision, then PolicyCenter withdraws the revision. Premium Report Policy Transaction When the policy changes from a Canceling status to a Canceled status, premium reports are impacted as follows: Scheduled audits past the cancellation date are removed. Completed reports remain completed regardless of the period they cover. In Progress reports Any reports Scheduled or In Progress with dates prior to a completed report remain regardless of the cancellation date. An In Progress period that includes the cancellation date is Withdrawn. In Progress periods later than the cancellation date are Withdrawn. In Progress reports covering the period prior to the report that includes the cancellation date are Withdrawn if both of the following are true. 1) If the premium report schedule excludes the last month. 2) The number of days from the end of the prior period to the cancellation date is less than the minimum audit period length.
Reinstatement	Final Audit Policy Transaction Reinstatement policy transactions impact audits as follows: Scheduled audits – PolicyCenter replaces the cancellation period audit with an audit for the full policy period. In progress audits – PolicyCenter withdraws the in progress cancellation audit and schedules a new audit for the full policy term. Completed audits – PolicyCenter reverses a completed audit and schedules an audit for the full policy term. Premium Report Policy Transaction Reports are reinstated as follows: Periods that were Withdrawn, Waived, or removed are added again as new Scheduled items The Waived and Withdrawn scheduled items remain in the list as Waived and Withdrawn. Completed periods that were reversed are also Scheduled as new scheduled items.
Rewrite	Final Audit Policy Transaction When the rewrite finishes, PolicyCenter schedules a final audit for the new period. Premium Report Policy Transaction .According to the configuration settings, PolicyCenter schedules premium reports when you issue the rewritten policy.

Note: Final audits cannot be out of sequence with other policy transactions. However, final audits can be preempted.