Refund on 2003 Corrected Loss Run – Possible?
A corrected loss run may not cause a 2003 policy year refund. You corrected a problem on your year 2003 Workers Comp claims loss run. Can you expect a refund of premiums?
Under most circumstances, there would be no refund as it was too far into the past. In fact, the ONLY loss run that can be corrected is the most current one in most cases.
We have been asked very often to try to dispute an old loss run. Over 95% of the time, we are unable to assist due to the NCCI or State Rating Bureau rules. We cannot evaluate or fix a file that was seriously over-reserved on old Workers Comp loss runs.
How does your company or any employer keep from over-paying due to incorrect loss runs with mistakes such as over-reserving, claims from a different employer, double entry of the same claim, etc?
As I have posted in the past – please check my old posts – follow the files with online claims access, or obtain a Workers Comp loss run monthly or at least quarterly. Review and monitor the loss run like a financial statement. If you see something that looks odd, question it immediately.
The bottom line key is to be proactive as the claim develops over time. The Six Keys will always help with reducing reserves. One cannot expect an adjusting staff to lower the reserves after they have been long established over a few months.
The critical time for the workers’ comp claims adjuster to finalize reserves usually occurs at the 60-day mark after the claim was opened on the carrier’s or TPA’s system.
If you ever feel that you need assistance, please call in a Workers Comp claims loss run expert.
Up Next – A Controversial Workers Comp Definition