Delaware DOI Sets Clear Standards for Payroll Audits

The Delaware Department of Insurance has issued Bulletin No. 159 outlining regulatory expectations for workers’ compensation payroll audits. Carriers must provide clear, accessible audit documentation to insureds and agents, complete audits promptly after policy expiration, issue timely billing adjustments or credits, apply uniform audit procedures across all policyholders, and ensure filings under 18 Del. C. § 2624 accurately describe audit and premium-collection practices.

DCRB notes these expectations align with the Delaware Workers Compensation Insurance Plan, which already requires employer cooperation and restricts binding coverage when audits or premiums are outstanding. The bulletin goes further by emphasizing transparency, timeliness, and communication quality.

Carriers should take steps to review audit workflows, communications, and policy documents now to confirm full alignment. Read the complete Information Bulletin here.