§1172.3. Collection of payments of workers' compensation premiums prohibited; premium
audits
A. An insurer shall not collect a payment of workers' compensation premiums from
an insured arising out of a premium audit, unless the insurer provides written notice to the
insured within ninety days of the completion of the premium audit by certified mail,
commercial courier, or via electronic transmission.
B. An insurer shall not modify or complete a premium audit more than three years
after the end of the policy period. This Subsection shall not apply to the following:
(1) A misrepresentation or omission of relevant information during a prior premium
audit.
(2) An insured's noncompliance with a premium audit.
(3) A premium audit disputed by an insured.
(4) Any modification or review related to a fraud investigation.
(5) Reclassification due to a determination by a court of competent jurisdiction.
C. Notwithstanding anything in this Section to the contrary, a workers' compensation
insurer may return premiums to the insured if, as a result of a premium audit, the insurer
determines the insured is entitled to a refund.
D. The provisions of this Section shall not apply to self-insurance funds.
Acts 2024, No. 782, §1; Acts 2025, No. 490, §1, eff. July 1, 2025.