What it does
CA 05 39 Premium Audit Noncompliance Charge provides for an additional charge when the insured does not cooperate with or complete a required premium audit. ISO introduced it in its 2026 multistate forms revision (CA-2026-OFR26), approved for policies effective on or after September 1, 2027 in states that have adopted the revision.
Who sees it
Accounts whose auto premium is subject to audit: motor carriers rated on cost of hire, gross receipts or mileage; auto dealers rated on payroll and plates; and accounts with hired and non-owned auto rating based on cost of hire or employee counts.
Selling notes
- Explain the audit process at binding and remind clients to keep records of cost of hire, mileage or receipts.
- Read the endorsement for how the charge is calculated and how the insured can avoid it by completing the audit.
