DE| The Delaware Department of Insurance’s Domestic and Foreign Insurers Bulletin No. 159 and Producer and Adjuster Bulletin No. 38 sets updated regulatory expectations for payroll audit practices under workers’ compensation and employer’s liability policies.
Below are three takeaways:
- Enhanced Transparency and Access: Carriers must provide insureds with full audit documentation—including worksheets, calculations, and billing details—with audit bills, and must make these materials securely available online through carrier portals.
- Fair Billing and Refund Practices: Insureds must be granted at least 30 calendar days to pay audited premiums, and carriers must issue direct refunds for overpaid audited premiums rather than applying credits to future bills, unless specifically requested otherwise.
- Standardized Agent and Appeal Processes: Carriers must simplify agent authorization to access audit records, establish prompt response timelines, and include clear instructions and links to the Delaware Compensation Rating Bureau (DCRB) appeal process in all audit-related communications.