Compliance with the worker’s compensation audit has always been important, 2017 will prove to be more important than ever.
Effective January 1, 2017
The Wisconsin Compensation Rating Bureau (WCRB) is requiring a mandatory audit noncompliance charge (ANC). With this change, it is extremely important that you complete the audit request as soon as it is received from your workers compensation carrier.
What will happen if I don’t complete the audit?
Your workers compensation insurance company will be required to invoice you an ANC, equal to two times the estimated annual premium, if you do not complete and return the final audit.
$50,000 Estimated Annual Premium
Why is the WCRB requiring the Audit Noncompliance Charge?
- To provide uniformity in assessing a penalty
- To give an incentive for insureds to cooperate with the premium audit as required by the policy contract
- To improve compliance with the audit process
- To ensure rate accuracy and sufficiency
Understanding the Audit Noncompliance Charge
- It is premium and is subject to premium tax
- The ANC endorsement is not optional and is mandatory on all Wisconsin workers compensation insurance policies
- The ANC endorsements will be treated the same as the WI Law Endorsement and the WI Cancellation and Non-renewal endorsement.
Contact a strategic risk advisor with questions or for more information