What Is a Workers’ Comp Audit Noncompliance Charge?
An audit noncompliance charge is a policy-based premium charge associated with failing to provide required audit access or records. It is separate from the final premium calculated after a completed audit.
The current policy and filed rule control the amount
Do not rely on a generic 25–50% figure. Public historical NCCI material used a different Utah basis and multiplier. Confirm the current Basic Manual rule and endorsement for the policy effective date.
Separate the charge from estimated or final audit premium
An estimated audit can use estimated exposure when the audit has not been completed. An audit noncompliance charge is a separate premium charge applied under policy and manual conditions. A final audit then determines actual exposure and final premium.
Ask the carrier to label each amount on the invoice: estimated premium, final audited premium, ANC, cancellation balance, or collection-related amount.
Verify the endorsement, requests, attempts, and calculation
NCCI’s current reporting guidance says the carrier’s policy conditions provide audit rights and that an ANC may apply subject to Basic Manual conditions. It also describes deleting the ANC after the audit is completed and reporting audited amounts.
The public historical rule required an inception endorsement and documented audit attempts, but the current Utah multiplier and every condition should be checked in Basic Manual 2021 and the actual policy.
Paying the charge is not the same as providing the records
Contact the carrier for one complete list of required records, submit them through a secure channel, obtain confirmation, and request the final audit and ANC accounting in writing.
For an assigned-risk policy, noncompliance may affect eligibility even if the charge is paid. Ask the carrier and NCCI what must be completed to restore compliance.
Gather the ANC and audit record
The endorsement and carrier correspondence are as important as the invoice.
- Policy information page
- ANC endorsement
- Audit appointment requests
- Records lists
- Mail and email attempts
- Stated charge and basis
- Original estimated premium
- Invoice and due date
- Documents already supplied
- Carrier completion instructions
Complete the audit and request the accounting
Resolve the missing-record problem while preserving any dispute about the charge.
- 1
Confirm requirements
Ask for the exact endorsement, current rule, required records, documented attempts, deadline, and charge calculation.
- 2
Complete the audit
Provide the requested records or access through the carrier’s secure process and obtain written confirmation.
- 3
Review the correction
Request the final audited premium, ANC deletion or refund accounting, and any compliance or eligibility update.
Official sources reviewed
These links lead to the agencies and rule systems that control the workflow. The policy and current filed rules still determine a particular account.
Audit Noncompliance Charge FAQ
What is an audit noncompliance charge?+
It is a premium charge associated with failing to comply with the policy’s audit requirements, subject to current manual and endorsement conditions. It is not the same as final premium based on a completed audit.
Is the charge the same as my final audit premium?+
No. Ask the carrier to separate estimated or audited premium from the ANC. Completing the audit allows the carrier to determine actual final premium.
Can the charge be removed after I complete the audit?+
NCCI’s current reporting guidance describes deleting the ANC after a completed audit and reporting audited amounts. Ask the carrier for the exact accounting that applies to your policy and any outstanding balance.
How large can a Utah ANC be?+
Confirm the current Utah Basic Manual rule and the endorsement for the policy effective date. Do not rely on a generic percentage or on the superseded Basic Manual 2001 rule.
Can noncompliance affect assigned-risk coverage?+
It may. NCCI’s rules can make an employer ineligible while audit noncompliance continues. Ask the assigned carrier or NCCI what must be completed for the policy involved.
Ask Redoubt to help separate the charge from the audit
Share the policy period, endorsement, carrier requests, invoice, and current deadline. Redoubt can help organize the insurance questions before you respond.
Last reviewed July 15, 2026. This page explains a general Utah insurance workflow. Your policy, endorsements, policy effective date, current rules, business structure, and agency instructions control. Redoubt is an insurance agency, not a law firm or government agency. A dispute or complaint does not by itself extend coverage or stop a payment deadline.