Should Workers Comp Premium Auditors Be Licensed?
Are Workers Comp premium auditors actually licensed in any state? This question was posed to me on a contact form on this page.
Agents, adjusters, and other insurance personnel have a license requirement in most states. Why do all states not require workers comp premium auditors to have some type of license? I have posed this question many times over my career.
Workers Comp premium auditors do hold a very intricate financial duty and do examine very in-depth records of employers they audit for insurance carriers.
Licensing auditors would cause the following effects:
- Generate a fee for the respective state government
- Insure that they are properly trained by administering a test
- A continuation of training due to the requirement of CEU’s every year.
- Allow a state governing body such as the respective state’s Department of Insurance to have some type of enforcement action as they do with agents and claims adjusters
- Weed out the bad apples in the premium auditing industry
- Standardize audits at least on a state-basis
I have spoken to many auditors on this very subject with mixed results. Some think licensing is a great idea while some are vehemently against it.
The National Society of Insurance Premium Auditors (of which J&L is a member) is the closest thing to a license that I have seen in the industry. However, they do have no enforcement capabilities.
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