• Down payments are due upon the effective date of the policy.  All installments are due the first of the month.  If your payment is not received by the 15th of the month, the installment due will show again on the following month’s bill.  A late payment will apply.  In addition, a notice of termination will be issued for non-payment.
• The notice of termination allows the insured 15 days to make payment before the termination becomes effective.
• Monthly payroll reports are due on the 10th of each month.  If the payroll report and the payment are not received by the 15th of the month, a notice of termination is issued.

• Sometimes the circumstance used to calculate your premium will change, in which case AIIS will issue an endorsement to your policy reflecting those changes.  Endorsements may increase or decrease your premium for several reasons:
• Payroll: Since some workers' compensation benefits are based on the injured workers' wages, changes in your payroll result in changes to your premium.
• Change in Experience Modifier.  The Experience Modifier is used to customize your premium based on your claims history.  As your Experience Modifier is recalculated from year to year, it will cause your premium to drop or rise.
• Addition of Safety or Drug Free Credits:  If you implement Safety or Drug Free Workplace programs in the middle of a policy year, AIIS will begin applying the credits, which lowers your premium

The insured’s copy of the endorsement is mailed, along with the agent’s copy, to the agent.  The agent is to review and countersign the endorsement before forwarding to the insured.  As a result, the insured often gets a revised installment bill before he receives the endorsement.

Many renewal policies are set up two months in advance, and the billing for those policies commences one month prior to the policy effective date.  This allows AIIC to offer twelve equal installments to the insured, which helps the insured’s cash flow by spreading the installments over the greatest period possible.  If you would like a different payment plan, please contact AIIS directly or ask your agent to arrange a different payment plan for you.

This usually occurs on renewal policies where the estimated premium is paid in full at the inception of the policy term.  Because renewal policies are set up with the same estimated payroll as the previous year, once the audit is processed the audited payrolls are compared to the current year policy estimated payroll.  If the current policy payrolls seem to be under estimated or over estimated, AIIS will endorse the current policy using the audited payroll.

Your Experience Modification factor is regulated by the National Council on Compensation Insurance (NCCI).  NCCI reviews your premiums and losses over a three-year period to calculate your Experience Modifier.  In order to keep and/or lower your Experience Modifier, you must control and/or lower your losses.

The issuance of this notice allows us to ensure that our policyholders are properly notified of their past due balance, and it provides policyholders the opportunity to make payments and ensure their coverage is not interrupted.

• Insured retires, goes out of business or sells the business.
• Insured changes carriers (may be subject to a short-rate penalty).
• Insured does not meet the state requirements for workers’ compensation coverage.

• Non-payment of premiums.
• Non-compliance with safety recommendations.
• Insured’s operations do not meet underwriting guidelines.

Contact your agent, who will submit a loss-policy release form that will advise the carrier of the termination date and the reason for termination.  The insured may want to verify with his agent the conditions that may subject him to a short-term cancellation penalty.

A premium audit is a review of a policyholder’s business records to determine final exposures.  With a few exceptions, workers’ compensation audits are based on payrolls.  If the audited exposures are lower than estimated at the policy inception, the insured is entitled to a premium refund.  If they are higher, the insured must pay the additional premium due.

• Wages/salaries, cash received for commissions and bonuses.
• Other remuneration, such as holiday pay, vacation pay, sick pay, the value of lodging or an apartment received as part of pay, et cetera.
• Examples of items not included in payroll: tips/gratuities, extra overtime, severance pay, employee discounts on goods/services.

• Payroll records (individual earnings, payroll journal, and/or register).
• Monthly summary of payroll, sales, and/or overtime.  (Premium is not charged on the extra pay earned for overtime, if records are separately maintained).
• Employer’s quarterly tax report (UCT-6 Form) for the policy period.
• Cash disbursement book and/or general ledger.
• Payments to subcontractors.
• Evidence of subcontractor insurance.  If your business involves subcontracting, you should obtain copies of any subcontractor’s certificate of insurance to avoid additional charges.
• Names of officers and descriptions of their duties.

The insured should review the field auditor’s worksheet and note any discrepancies with respect to payroll figures or employee duties/job descriptions.  A detailed, written statement should be submitted to the carrier on the insured’s letterhead.  The statement should include names, positions, payroll, and duties of employees or subcontractors in dispute.  An audit can not be considered in dispute until the carrier receives the written statement.  The audit manager will then review the statement.  If any corrections or revisions are deemed necessary, a revised premium audit statement will be mailed to the insured and his agent.