A compliance audit checks factors that impact your premium – including your experience mod factor. We can help you optimize your mod [More]

In our experience, errors and overcharges occur a high percentage of the time, and can cost you a lot of money. [More]

• We audit the insurance carrier’s compliance with state rules regarding premium calculation, such as (but not limited to):
  • Correct application of experience modification factor
  • Correct application of miscellaneous debits and credits
• We will evaluate the accuracy of the experience modification factor by analyzing the carrier’s compliance with state rules regarding reporting of unit statistical data such as claims and payroll information.

Payment for Services Options:

• 50/50 Strictly Shared Savings Agreement
  • Client provides policy data readily available for the audit
  • Synergetic Solutions makes a reasonable attempt to obtain the remaining data for the audit
• Hourly fee
• Flat Fee

Policy data typically requested from Client:

• Current and past policies (up to 10 years back)
• Final Premium Audit Statements (up to 10 years back)
• Payroll information

Throughout the entire process, we will update you on the status of your audit at least once every 30 days.

Audit duration will depend on the time it takes to obtain the audit data and the complexity of the issues identified. The surest way of reducing the audit time is to provide – or assist in providing – required audit data.

A construction company contracted with us because they were concerned with increasing costs. Their premiums were increasing even though they had relatively low claims activity. The company’s concerns were valid. Our audit identified carrier errors resulting in inflated premiums. Below are the results of our audit.

09/05/03-04 Original mod rating 1.13 Revised mod rating 1.04 Returned premium $12,441
09/05/04-05 Original mod rating 0.93 Revised mod rating 0.83 Returned premium $14,073
09/05/05-06 Original mod rating 0.96 Revised mod rating 0.85 Returned premium $10,177

This company received a $36,691 refund check from the carrier within 90 days of signing the audit agreement.

Manufacturing

Our client recently purchased a manufacturing plant. Their insurance agent assured them the experience of the new plant was properly reflected on their experience modification factors. After reviewing the experience rating, we discovered the new data was incorrectly reported. As a result of our work, our client received improved experience ratings and refund checks.

01/01/03-04 Original mod rating 1.14 Revised mod rating 0.92 Returned premium $35,313
01/01/04-05 Original mod rating 1.09 Revised mod rating 0.95 Returned premium $15,551
01/01/05-06 Original mod rating 1.06 Revised mod rating 1.00 Returned premium $6,687

The total refund was $57,551

Health Care

We recently conducted an audit for a healthcare company. During the audit, we identified several less than obvious errors. For example, a claim was reported incorrectly on the loss run and on the experience mod worksheet. Consequently, when comparing the loss run to the experience mod worksheet there didn’t appear to be an issue. Only a comprehensive investigation could have revealed the claim had been subrogated. We identified the issue and worked with the carrier to obtain a correction to the experience rating. The corrected experience rating resulted in a premium refund of $31,257.