Louisiana 2024 2024 Regular Session

Louisiana House Bill HB200 Engrossed / Bill

                    HLS 24RS-95	ENGROSSED
2024 Regular Session
HOUSE BILL NO. 200
BY REPRESENTATIVE MELERINE
WORKERS COMPENSATION:  Provides relative to past payments of workers'
compensation premiums
1	AN ACT
2To enact R.S. 23:1172.3, relative to workers' compensation; to prohibit the recovery of past
3 payments of workers' compensation premiums under certain circumstances; to
4 require notification; to provide exceptions; to provide for applicability: and to
5 provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 23:1172.3 is hereby enacted to read as follows: 
8 ยง1172.3.  Recovery of past payments of workers' compensation premiums prohibited
9	A.  Notwithstanding any other provision of law to the contrary, no insurer
10 shall be allowed to recover a past payment of workers' compensation premiums from
11 an insured arising out of a claim for the misclassification of an employee, unless the
12 insurer provides written notice to the insured by certified mail or any other
13 reasonable commercial courier within ninety days of discovery of the
14 misclassification.
15	B.  In the event that an insurer conducts a payroll audit, which shall serve as
16 notice to the insured, and fails to notify the insured by the requirements set forth in
17 Subsection A of this Section, the insurer shall be prohibited from recovering any past
18 payment of workers' compensation premiums from the insured.
19	C.  Notwithstanding any other provision of law to the contrary, no insurer
20 shall be allowed to recover any past payment of workers' compensation premiums
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-95	ENGROSSED
HB NO. 200
1 for the misclassification of an employee that occurred more than three years prior to
2 the insured being notified of the misclassification, unless it is determined by a court
3 of competent jurisdiction that the misclassification was the result of fraud by the
4 insured.
5	D.  If the National Council on Compensation Insurance conducts an audit and
6 reclassifies an employee, the insurer is prohibited from recovering any past payment
7 of workers' compensation premiums from the insured.  However, the insurer may
8 adjust the current premium to reflect the reclassification.
9	E.  The provisions of this Section shall not apply to self-insurance funds.
10	F.  The provisions of this Section shall apply only for the duration of a policy.
DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part
of the legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 200 Engrossed 2024 Regular Session	Melerine
Abstract:  Prohibits an insurer from recovering past payments of workers' compensation
premiums from an insured.
Proposed law prohibits an insurer from collecting past payments of workers' compensation
premiums from an insured for a claim that arises out of the misclassification of an employee,
unless, the insurer provides written notice to the insured by certified mail or by any other
reasonable commercial courier within 90 days of discovery of the misclassification. 
Proposed law prohibits an insurer from recovering past payments on premiums, if the insurer
conducts a payroll audit and fails to notify the insured by the aforementioned notification
requirements. Proposed law clarifies that an audit by the insurer shall serve as notice to the
insured.
Proposed law prohibits an insurer from collecting past payments on premiums that occurred
three years prior to the insured being notified of the misclassification, unless it is determined
by a court of competent jurisdiction that the misclassification was a result of fraud by the
insured.
Proposed law prohibits an insurer from recovering any past payment of workers'
compensation premiums from the insured if the National Council on Compensation
Insurance conducts an audit and reclassifies an employee.  Proposed law also allows the
insurer to adjust the current premium to reflect the reclassification.
Proposed law provides that proposed law does not apply to self-insurance funds.
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-95	ENGROSSED
HB NO. 200
Proposed law provides that proposed law only applies for the duration of a policy. 
(Adds R.S. 23:1172.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Labor and Industrial
Relations to the original bill:
1. Clarify that the audit provided for in proposed law is a payroll audit. 
2. Provide for workers' compensation premiums when the National Council on
Compensation Insurance conducts an audit.
3. Provide that proposed law does not apply to self-insurance funds.
4. Provide that proposed law only applies for the duration of a policy.
5. Make a technical change.
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions.