January 3, 2025 – Claims administrators must ensure timely submission of the Annual Report of Inventory (ARI) in early 2025, covering claims reported during the calendar year 2024. This reminder emphasizes the importance of adhering to regulations to avoid penalties and ensure compliance.
Regulatory Requirements for Annual Report Submission
Under Title 8, Section 10104 of the California Code of Regulations, claims administrators are required to file an ARI with the Division of Workers’ Compensation (DWC) by April 1 each year. This report must indicate the number of claims reported at each adjusting location during the prior calendar year. Importantly, even if no claims were reported, the ARI must still be submitted to the DWC Audit Unit. Additionally, each adjusting location must file the ARI unless explicitly waived by the DWC.
When a waiver is granted, claims administrators must instead file an annual report of adjusting locations. This alternate report details the operations of adjusting locations as of December 31 of the prior year and is also due on April 1. The DWC strongly encourages email submissions to the Audit Unit at DWCAuditunit@dir.ca.gov. Upon receipt, senders will receive email confirmation, ensuring accountability and tracking.
Deadlines and Consequences for Non-Compliance
The April 1, 2025 deadline is firm. Any report received after this date will be considered late, potentially resulting in penalties. Claims administrators must also report any changes in information submitted in the ARI or the annual report of adjusting locations within 45 days of the change. Failure to comply with these requirements may result in fines of up to $500 per location, as outlined in Title 8, California Code of Regulations, Sections 10111.1(b)(11) and 10111.2(b)(26).
Accessing and Submitting Required Forms
The 2024 ARI form is available on the DWC website. In addition, the form was distributed to all claims administrator contacts in November. If your company did not receive a copy, you can request one by emailing DWCAuditunit@dir.ca.gov. Ensuring you have the correct form well in advance of the deadline will help streamline the submission process.
Tips for Timely and Accurate Submission
To avoid penalties and maintain compliance:
- Submit all required documents before the April 1, 2025 deadline.
- Use email for efficient delivery and confirmation.
- Notify the DWC Audit Unit within 45 days of any changes to previously reported information.
Timely submission of the Annual Report is a critical compliance task for claims administrators. Staying proactive and organized can prevent costly penalties and maintain your organization’s standing with the DWC.
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