The Wisconsin Compensation Rating Bureau is now requiring a mandatory audit noncompliance charge (ANC). Effective January 1, 2017 any insured who does not comply with a workers compensation audit will be billed an additional two times the estimated workers compensation premium.
$50,000 Estimated Annual Premium
+$100,000 Audit Noncompliance Charge
$150,000 Total Amount Due
The intent of the charge is to provide uniformity in assessing a penalty. It is also an incentive for insureds to cooperate with the premium audit as required by the policy contract. Improved compliance with the audit process will lead to increased accuracy, as well as ensure rate accuracy and sufficiency.
- The ANC is not a premium surcharge. 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 endorsement will be treated the same as the WI Law Endorsement and the WI Cancellation and Non-renewal endorsement.
- There are no changes to the Wisconsin cancellation rate. Current term policies cannot be cancelled for nonpayment of the audit bill.
While compliance with the work comp audit has always been important, 2017 will prove to be more important than ever. For additional information on the ANC, contact a Knowledge Broker at R&R Insurance.