§1172.3. Recovery of past payments of workers' compensation premiums prohibited

            A. Notwithstanding any other provision of law to the contrary, no insurer shall be allowed to recover a past due payment of workers' compensation premiums from an insured arising out of a claim for the misclassification of an employee, unless the insurer provides written notice to the insured by certified mail, commercial courier, or via electronic transmission, within ninety days of the completion of the payroll audit.

            B. In the event that an insurer conducts a payroll audit, which shall serve as notice to the insured in accordance with Subsection A of this Section, the insurer shall be prohibited from collecting additional workers' compensation premiums from the insured.

            C. Notwithstanding any other provision of law to the contrary, no insurer shall be allowed to modify or complete a payroll audit more than three years after the end of the policy period. This Subsection shall not apply to the following:

            (1) A misrepresentation or omission of relevant information during a prior audit.

            (2) A noncompliant payroll audit.

            (3) A payroll audit disputed by an insured.

            (4) Any modification or review related to a fraud investigation.

            (5) Reclassification due to a determination by a court of competent jurisdiction.

            D. Nothing in this Section shall preclude or require an insurer from returning premiums to the insured if the insurer receives relevant information after the audit is completed.

            E. The provisions of this Section shall not apply to self-insurance funds.

            Acts 2024, No. 782, §1.