Louisiana has drawn a firm line: insurers can no longer collect unpaid workers’ compensation premiums unless they notify policyholders within 90 days of finishing a premium audit.
House Bill 280, signed into law in July 2025, is reshaping how insurers handle premium collections after audits. Under this new rule, insurers must provide written notice - whether by certified mail, commercial courier, or electronic transmission - within 90 days of completing a payroll or premium audit if they want to recover unpaid premiums. Miss that deadline, and in most cases, the right to collect is gone - unless fraud, misrepresentation, or other exceptions apply.
This change matters because it closes the door on insurers coming back years later with surprise premium demands based on misclassified employees or payroll reporting issues. And the clock doesn’t tick forever on audits either. The law gives insurers no more than three years after a policy period ends to modify or complete an audit. There are narrow exceptions - including fraud investigations, misrepresentations during a prior audit, disputes over an audit, noncompliance with a premium audit, or reclassifications ordered by a court - but the general rule now puts policyholders on firmer ground.
Insurers may still refund premiums if a completed audit later shows the policyholder overpaid, but they’re not required to do so. And self-insurance funds? They’re not affected - this law applies strictly to workers’ comp insurers.
For insurers, brokers, and risk managers, HB 280 is a call to tighten audit practices and make sure premium collection processes are prompt and compliant. For insureds, it offers peace of mind that premium bills won’t come back to haunt them years down the line - unless fraud or misrepresentation is at play.
