The Delaware Department of Insurance has revised Domestic and Foreign Insurers Bulletin No. 159 and Producer and Adjuster Bulletin No. 38, dated October 20, 2025 and revised February 5, 2026, and states the guidance is “effective immediately.”
The Delaware Department of Insurance says the revised bulletin updates regulatory expectations for payroll audit practices under workers’ compensation and employer’s liability policies in Delaware, citing 18 Del. C. § 2624 (rate filings to include rules and practices for payroll audits and premium collection).
It states expectations for transparent, consistent and accessible audit procedures supporting fair premium billing and timely resolution of audit inquiries. The Department expects carriers, where they issue an audit bill or notice, to provide calculations and supporting documentation sufficient to justify the audited premium and enable verification without exposing employee-level PII; while carriers are not required to provide internal audit worksheets to insureds, they must retain the full worksheet for regulatory review and provide PII-free summaries covering payroll reviewed, class codes applied, adjustments, any reclassification or added exposure, and the complete premium calculation, with narrative explanations for changes from the original estimate.
For carriers with online portals, the Delaware Department of Insurance expects secure digital access to audit-related documents, including historical audit records, billing notices and audit correspondence. Where a premium correction reduces the amount owed after an audit, carriers must issue a direct refund of any overpaid amount rather than applying credits to future billing cycles unless the insured expressly requests otherwise, and refunds must use the same method as the first method of payment used for that policy term (or, if unavailable, by cheque or another mutually agreed method).
On agent access, the Department expects carriers to treat agent requests with the same urgency and transparency as insureds, and to implement a standardised process enabling licensed agents to assist insureds, including insured designation of portal and mailed-document access, secure credentials, and clear guidelines for verifying authorisation, response timeframes and secure transmission; if an insured does not consent, that decision must prevail. The Department also says carriers should provide at least 30 calendar days from issuance of an audited premium bill to remit payment unless a different timeframe is expressly established by contract, and expects carriers’ portals and audit communications to include DCRB appeal information, noting that insureds may appeal during the policy period or within 12 months after termination. Carriers are expected to review and adjust audit procedures, including submission of updated rule and/or form filings as needed, and the bulletin remains in effect unless withdrawn or superseded.
