What is required from the insured based on the premium audit?

The requirement for payment of any additional premiums resulting from the audit stems from the nature of premium audits in insurance policies. These audits are conducted to determine the actual exposure of the insured, which may differ from the original estimates.

When an insurance company initially sets a premium, it is based on expected risks and classifications. However, once the insured's operations are reviewed through an audit, the true risk exposure is assessed. If the audit reveals that the actual risk is higher than what was initially estimated, the insured is liable for paying the difference in premiums. This ensures that the insurance company is appropriately compensated for the risk it assumes.

Other options touch on aspects that may be relevant in different contexts but do not correspond directly to the requirements stemming from a premium audit. For instance, while disclosure of past claims and regular updates on business operations may be relevant for risk assessment or underwriting purposes, they are not specifically required as part of the premium audit process. Thus, the focus on additional premiums as a direct outcome of the audit underscores the essential function of premium audits in maintaining accurate and fair pricing in insurance.