Assessment Audit Program
Most Connecticut companies pay SIF assessments in accordance with state law. However, the companies that underpay or fail to pay unfairly burden other businesses with the cost of funding the Second Injury Fund.
The Audit Program - How It Works
Selection Criteria - Insurance Companies (one of the following applies):
- Systematic selection of insurance companies doing business in Connecticut
- Failed to report and pay standard premium assessment to the Fund
- Notice of bankruptcy
- Incorrect completion of the quarterly Remittance Detail Template
Selection Criteria - Self Insured Companies (one of the following applies)
- Systematic selection of all self-insured employers
- Failed to report paid losses for the calendar year to the Fund
- Notice of Bankruptcy
- Workers' Compensation Commission notifies the Fund of employer's status change to self-insured
- Incorrect completion of the Paid Loss Detail Template was incorrect
The Fund selects a company for audit and a letter is sent notifying the insurance company or self-insured company that their business has been selected for audit. A conference call is scheduled with the appropriate representative to discuss documents and data necessary to begin the audit. A submission deadline is also set which allows the company sufficient time to comply with the Fund's request.
Look-back Period - (effective July 1, 2006) the period of audit review will be three years retrospectively.
When the requested information is received, the audit team tests the data. If the data matches the Fund's original test selections, then accounting personnel verify the assessment due. If data doesn't match, then the company must rerun detail until the employer reports them correctly.
When the audit is complete, the company is presented with the findings and is formally notified if it will be required to pay any additional assessment and interest.