Paying The Undisputed Premiums Requirement
The undisputed premiums after the audit should be paid to the carrier. We have received a number of questions on how to proceed if there is a Workers Comp premium dispute on how much premiums are owed. For example, I received this question last week.
We are disputing a premium that was added in at audit time by the Workers Compensation auditor. As we are unsure of exactly the total amount owed, do we have to make a provisional payment or can our company wait to pay until all disputes are resolved?
All states have on their books that any undisputed premium should be paid on receipt of the premium bill. Your company is not required to pay the disputed amount until you have resolved the issue with the insurance carrier that has billed your company. Using the dispute process to hold off paying a bill can ruin what would have been a good working relationship between your agent, insurance company, and your company.
Finding out what your company owes in a premium dispute should be initiated as soon as possible. Paying an estimated amount is not sufficient. Your company should not underpay or overpay in this situation.
As I have said many times in this blog, over 90% of the employers that have overcharges or their Workers Comp premiums have a gut feeling something is wrong. We have a list here that may turn on that gut feeling.
I have had clients and peers say that sometimes I sound like I am a very pro-insurance company. Actually, I am pro-the rules in place. As Charles Givens once said, “If you want to win, you have to play by their rules.” You can still make sure you are paying the right premium for Workers Compensation and follow the rules in place – better known as your Workers Comp policy.
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