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ACCOUNTING AS THE MASTER METAPHOR OF ECONOMICS

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Audits – In those cases where the pricing exposure is not known at contract inception, audits may be used to determine the actual final exposure. These audits can occur during the policy term or at the end of the policy term, depending on the pricing exposure base characteristics. For example, a policy whose final premium is based on the insured’s sales (e.g., a commercial liability policy for a retail store) or payroll (e.g., a workers’ compensation policy) during the policy period will require an audit after the policy has expired to determine the final premium. Endorsements/cancellations – Policies.

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