just looke to the 2 pictures and re-write it in your own words, my teacher says
ID: 392459 • Letter: J
Question
just looke to the 2 pictures and re-write it in your own words, my teacher says its not allowd to me to write the same exast answer because the plagiarism so I have to change and re-write it in my own words so please help me. thank you
Types of Premium Adjustments Audit premiums * Premiums determined from data developed by Periodic audits of insureds' records Periodic reports submitted by insureds * Audit may result in additional premium or return premium Retrospective premium adjustments Modifications of the premiums after expiration of the policies Adjustment is based on the experience of an individual risk during the term of the policy Generally subject to maximum and minimum premium limits specified in the policyExplanation / Answer
There are four types of adjustments for premium.
1. Audit premium
2. Retrospective premium adjustment
3. Cancellation
4. Endorsements
1. Audit premium:
It can be determined by analysing the periodic audit records of the insured. It can also be determined by analysing the periodic reports which were submitted by the insured.
2. Retrospective premium adjustment
This type of adjustment is done after the expiration of policy based on the individual risk encountered by the insured during the term of the policy. Maximum and minimum limit of the premium needs to be considered while making the adjustment of the specific policy.
3. Cancellation
This type of adjustment is taken into consideration if the existing policy has been terminated before the expiry of the policy. It can also be undertaken at the request of the insured. Not paying the premium at regular predetermined interval can also lead to cancellation of the policy.
4. Endorsement
This type of adjustment is done when additional benefits are required by the insured due to which he may have to pay an additional premium. In some cases, the premium can also be altered due to the addition or deletion of the risk covered or increase or decrease in the coverage limit. This type of adjustment can also be considered when there is a change of residential address of the insured.
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