Policy Audits

Periodically, SLTX performs audits to ensure any errors are corrected and that policies are in compliance with statutes and surplus lines regulations.

When a policy audit is initiated, the agency will receive notice via email with a list of policies for review.

If the policy has been cancelled, submit the policy to SLTX and provide the cancellation document.

Policy corrections can be made prior to submission to SLTX for audit.

Submitting Items

As part of the audit, the agency should provide complete copies of the requested transactions to SLTX, which includes the following:

  • Coverage parts
  • Schedules
  • Required notices (Complaint Notice, Non-Participation in the Guaranty Fund)
  • Endorsements
  • Zip code of the risk location (must be a physical address)
  • Binder (if used) and policy

In addition, the name and address of the surplus lines license holder must be shown on all items. Please refer to the Policy Audit Checklist.

For expedited processing, brokers are encouraged to submit the requested items through email or other secure electronic methods. The items must be received by SLTX by the due date indicated on the policy audit request.

If you are unable to return the policies by the date specified in the letter, please contact SLTX to request an extension of the due date.

When communicating with SLTX regarding a policy audit, always refer to the policy audit number (included within the audit request letter), agency name, and surplus lines license number. Please contact Tech Support if you need assistance.

Making Corrections

When the review is complete, SLTX will communicate the results to the agency contact and agency owner/principal. The results will include the errors found during the audit. These errors must be corrected by the due date listed in the email to the agency.

For more information on making corrections, please refer to the Policy Audit Corrections How To Guide.

Only information highlighted in yellow must be corrected. Some errors may be updated through the SLTX online system, which includes:

  • Class code changes
  • Windstorm exclusion changes
  • Zip code changes

Errors that require additional paperwork to be sent to SLTX include, but are not limited to:

  • Policy fee discrepancies
  • Breakdown of States forms missing or entered incorrectly
  • Zip code of risk location not included within the policy
  • Premium discrepancies due to inaccurate paperwork
  • Undetermined coverage or class code

Errors that may require the transaction to be reversed and re-entered include, but are not limited to:

  • Premium split errors
  • Coverage code errors
  • Incorrect policy numbers
  • Incorrect¬†insurers

Please email Tech Support once all applicable errors have been corrected.