Logins

Typically auditors need access to BriteCore. As such, your first step during an audit is to create a separate contact in BriteCore for each auditor:

  1. Navigate to the Contacts module
  2. Click New Individual
  3. Complete the information
  4. Assign the Role of Administrator
  5. Submit an OOPS! ticket to IWS requestion the creation an Auditor permission level, which typically restricts auditors to the Policies, Claims, and Reports modules

Reports

During an audit various reports, or extracts, will be requested. In many cases, the reports will be specific enough that they require combining existing reports or building a new BriteData report.

Rather than submit a ticket to IWS, complete the following steps to compile the necessary reports:

  1. Take a few deep breaths; audits are stressful for everyone
  2. Compile reporting requirements
  3. Compare the reporting requirements to your unique lines setup and BriteCore's vocabulary
    • Example 1: Is the requested data stored as a line item or a category? This will make a difference if you must build a BriteData report
    • Example 2: If the auditor asks for the Type of Business where the expected value is either direct, assumed, or ceded, do you capture those specific words in BriteCore? If not, you will need to manually add those terms to the report
  4. Identify the BriteCore reports that have that data. In some cases, you may have to combine a few different reports
  5. If the data requested is beyond the scope of the stock reports, begin a BriteData report. It is recommended that you build a separate report for each extract

Examples

Below are examples of extracts required during an audit.

Written Premiums

Examination Objectives

  • Analyze written premium file for inconsistencies or unusual items
  • Verify existence and completeness of the written, earned, and unearned premium balances
  • Verify written premium amount is reported in proper accounting period
  • Determine significant producers of premiums

Data Points

Agent Code
Transaction Code (New, Renewal, Cancellation, etc.)
Line of Business (Fire, Allied, Homeowners multiple peril)
Type of business (Direct, Assumed, or Ceded)
State
Policy Number
Paid Date
Effective Date
Expiration Date
Insured’s Name
Policy Term in Months
Written Premium Amount
Earned Premium Amount
Unearned Premium Amount

Premiums Receivable

Examination Objectives

  • Analyze premium receivable file for inconsistencies or unusual items
  • Verify existence of the premium receivable balance
  • Verify the aging of premium receivables

Data Points

Policy Number
Insured’s Name
Policy Effective Date
Premium Amount Billed and Unpaid
Policy or Installment Fees Billed and Unpaid
Total Amount of Unbilled Installments
Premium Due Date

Advance Premium

Examination Objectives

  • Analyze advance premium for inconsistencies or unusual items
  • Verify completeness and proper cut off of the advance premium

Data Points

Policy Number
Insured’s Name
Policy Effective Date
Premium Amount Received
Date of Receipt

Examination Objectives

  • Analyze paid claim file for inconsistencies or unusual items
  • Verify accuracy of the paid loss and loss adjustment expense amounts
  • Prepare loss development from year-end date to the examination date
  • Determine if the claim occurred during the policy effective dates
  • Verify that claims are timely paid

Data Points

Policy Number
Policy Effective Date
Payee Name
Insured Name
Claim Number
Paid Claim Amount
Paid LAE Amount
Date of Loss
Date Reported
Date of Payment
Line of Business
Type of Business

Loss Reserves

Examination Objectives

  • Analyze loss reserve file for inconsistencies or unusual items
  • Verify existence and accuracy of the loss reserve amounts
  • Prepare loss development from year-end date to the examination date
  • Determine if the claim occurred during the policy effective dates

Data Points

Policy Number
Policy Effective Date
Payee Name
Insured Name
Claim Number
Loss Reserve Amount
LAE Reserve Amount
Date of Loss
Date Reported
Line of Business
Type of Business


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