Premium Reconciliation is a program that was created to help ensure that all surplus lines premiums and taxes have been reported in accordance with state laws. The program compares data submitted by surplus lines agents and independently procured coverage (IPC) filers with the data being submitted by surplus lines insurers. The Premium Reconciliation program helps uncover variances in reported premium to verify that all taxes, service fees, and assessments are paid correctly.
As insurers submit policy data in SLIP, it is automatically matched in RAPID with the correlating policy information submitted by agents or IPC filers. RAPID automatically verifies the insurer and agent policy data matches based on several data points, including:
Since its inception in 2000, the Premium Reconciliation program has recovered more than 800 million dollars in unreported premium and $40 million in unpaid taxes, fees and assessments.
Premium Reconciliation is a module in the RAPID (Regulatory Administration Platform for Insurance Data) system designed for regulators and stamping offices.