Workers Compensation Premium Auditors Licensed Like Claim Adjusters?
The Workers Compensation premium auditors should likely have licenses like claim adjusters.
Workers Compensation premium auditors have never been licensed or actually regulated in most states. I have spoken often to the other premium audit companies for employers about starting an organization that would oversee the employers’ Workers Comp premium audit sector of the insurance industry. After the Workers Compensation consultant debacle in South Carolina, I would say that states need to consider licensing ALL premium or other types of auditors.
The premium auditors are very similar to adjusters in many ways. Adjusters and premium auditors do have fiduciary responsibilities to their customers.
The amount of premiums that an employer pays will always center on the work of adjusters and premium auditors. The adjusters indirectly charge premiums by setting reserves which affect the E-Mod.
The auditors can directly change the premiums by auditing the payroll and company overall.
For some reason, as the insurance industry has evolved, licensing auditors of premiums has never even shown as a blip on the radar screen of regulators. Licensing auditors would be a quick income source for the Departments of Insurance. One has to wonder why a state department allows this untapped quick source of funds to escape their licensing fees. Most workers comp adjusting licenses cost $100 – $200 per year. Out of state adjuster licenses can be very expensive.
Licensing any type of insurance personnel allows the states to control their actions by fining or license revocation. Every state insurance department issues a list of fines or license revocations at least quarterly.
I think we will at least see a large association started of employer premium auditors. That is a great idea, but should the regulation be self-imposed? I have seen little or no attention from any governing body on the subject. What about insurance company based or independent premium audit companies? Should these premium auditors also be regulated?
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