Erin assesses actual exposure and premium through detailed examinations of policyholder operations and accounting. What role best describes her?

• A. Producer
• B. Premium auditor
• C. Claims adjuster
• D. Underwriter

Answer: (B)

This describes premium auditing. A premium auditor verifies that the insured’s actual exposure matches what was billed by reviewing the policyholder’s operations and accounting records. By examining sources like payroll, sales, and other financial data, the auditor determines the correct premium and may adjust it retroactively or at renewal if the actual exposure differs from reported figures. This is different from a producer, who sells coverage; a claims adjuster, who investigates and settles claims; and an underwriter, who assesses risk and sets terms and pricing. So the best fit is the premium auditor, someone who ensures the premium reflects the true level of exposure.