Yesterday I covered the situation where a premium auditor asked an employer to agree to a premium audit just completed by signing an agreement to the audit findings.

As I mentioned previously, I have never seen in any policy the requirement to sign off on a premium audit whatsoever.  There are a few exceptions that I noted in the last post.

An employer would give up most of their rights by signing such an agreement.  These rights would include:

• The right to later question the audit is eliminated.  If you agreed to the audit, it is too late to even consider a premium audit dispute.  Get the out the checkbook and pay up.  
• Some of the agreements may require that your company also give up all rights to the present audit and all of the past ones.  If you find a mistake in your next policy or the current one, you cannot ask for premium refunds on past policies. 
• Your company may be required to pay the premium audit bill very quickly according to the auditor's side agreement. 
• The insurance carrier may possibly still be able to audit your past and present policies and charge your company more premium.  This would all depend on the agreement you signed with the auditor. 
• Your company may have to pay all or a portion of the audit findings on the spot.   This is rare, but it does happen.  

Please note that most premium auditors are good people just doing their jobs.  I cannot imagine why these good people would want you to sign such an agreement.    

As I pointed out in the last post, there are certain instances where an agreement might be appropriate, but not on a just-completed premium audit.