audited policy

  • A policy on which an audit of the insured’s books or records must be made in order to ascertain the premium due the carrier for protection furnished. The premium, usually based on the insured’s payroll, is determined from the audit.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).