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EMC Changes Billing for Premium Audit Additional Premiums

EMC Changes Billing for Premium Audit Additional Premiums

Due to some recent updates to the EMC billing system, there has been a change to how they bill for Premium Audit Additional Premiums. Going forward in their new system premium audits resulting in additional premium due will be billed on the same invoice as the current term, along with other premium charges. This means accounts will no longer receive a separate premium audit invoice in addition to a normal monthly premium billing notice. This may result in a higher-than-expected draft on client accounts.

FAQs

Q: How much notice will an insured receive about a premium audit before it is pulled from their account?

A: For direct bill accounts, there will be approximately 25 days between the audit amount notification and EFT draw. For agency billed accounts, the EFT draw for the agency will occur approximately 45 days after the statement.

 

Q: What happens with a disputed audit?

A: If the insured is on direct bill and they invoice the audit, they cannot adjust the invoice and the full premium will be due. If the account is on EFT and they invoice the audit, they can adjust the amount pulled from the insured’s account as long as it is not during the 4-day window before the due date when the EFT is processing.

 

Q: Will there be any notification to the insured about the amount and timing of the higher EFT withdrawal? 

A: Yes. The regular EFT notification will be sent to the insured like all other invoices.

 

Q: Will there be any notification to agents about the amount and timing of the higher EFT withdrawal?

A: Yes. Agents will be notified by email when an adjustment amount exceeds 10% or $1,000.

 

Q: In Billing Center, can the Accounting team spread out the audit premium due over multiple months?

A: Audits are (and have always been) billed in full because the premium due is for the prior term.

 

If you have any questions, please reach out to your EMC Territory Manager for additional information.

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