Workers Comp Audit – Premium Auditors
The premium auditors emailed me a few times on their disbelief of my last article. My last post discussed two employers being audited for a total of 23 years by their Workers Comp carrier. I am not faulting any certain auditor, but more of the insurance environment that is in place now. I have seen two or three auditors that should not be doing premium audits. I have also seen a few workers compensation adjusters that should not have been handling claims. For the most part, auditors and adjusters are very hard working people.
My main point is that there are audit rules that must be followed to the letter by employers. The NCCI and each state have come up with very specific workers comp audit rules. Insurance companies should have to follow the same work comp audit rules. Going back 15 years and try to perform audits and collect in California is just not legal. California has a very short look-back period on audits.
I will post tomorrow on Professional Employment Organization (PEO’s). With the economy in a downturn, the prevalence of PEO’s are increasing dramatically as they have in bad economies in the past.
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