House Bill No. 280, introduced by Representative Melerine, amends R.S. 23:1172.3 to update the regulations surrounding the collection of workers' compensation premiums. The bill prohibits insurers from collecting past due payments arising from premium audits unless they provide written notice to the insured within 90 days of the audit's completion. This change replaces the previous stipulation that only applied to claims related to employee misclassification. Additionally, the bill repeals the provision that allowed insurers to conduct payroll audits as a form of notice to the insured regarding additional premium collections.

Furthermore, the bill establishes a three-year limit for insurers to modify or complete premium audits after the policy period ends, with specific exceptions for cases involving misrepresentation, noncompliance, disputes, fraud investigations, or court determinations. It also clarifies that insurers may return premiums to the insured if a premium audit reveals that the insured is entitled to a refund. The bill is set to take effect upon the governor's signature or after the designated time for gubernatorial action.

Statutes affected:
HB280 Original:
HB280 Engrossed: