DWC Annual Reports of Inventory (ARI) Are Still Due This Wednesday, April 1, 2020

The Institute has confirmed with Christina Fenimore, Manager of the DWC Audit Unit, that there has been no change in the April 1 deadline for workers’ compensation claims administrators to file their 2020 Annual Report of Inventory (ARI) for Claims Reported During Calendar Year 2019. 

Per the state’s electronic data reporting regulation [CCR 9702 (i)(3), www.dir.ca.gov/t8/9702.html] the obligation to submit the ARI can be waived if the Administrative Director determines that the claim administrator has demonstrated the capability to submit complete, valid and accurate data via the Workers’ Compensation Information System (WCIS). Otherwise, CCR §10104 requires that each insurer, TPA and self-administered, self-insured employer and JPA adjusting location complete the ARI form indicating the number of claims at that location for the preceding calendar year and submit it to the DWC Audit Unit. The inventory must be filed even if the adjusting location had no claims reported to it in the prior year, and regardless of whether it received an inventory form from the Division. Failure to submit the report by April 1 may result in penalties of up to $500 per adjusting location.

Also please note that claims administrators whose ARI requirement has been waived still must file an Annual Report of Adjusting Locations, providing the state with a list of all of their adjusting locations that were operating as of December 31, 2019. The deadline for filing the Annual Report of Adjusting Locations also remains April 1, 2020.

Any revisions to the information reported in the ARI or Annual Report of Adjusting Locations must be made within 45 days of the effective date of the change. 

The DIR web page with details, instructions and the inventory form (Form DWC-851, Rev. 9-2019), is posted at http://www.dir.ca.gov/dwc/Audit_inventory/audit_ReportofInventory.html.

The Annual Report of Adjusting Locations Form (Form DWC-857, Rev. 9/2019) is posted at https://www.dir.ca.gov/dwc/Audit_inventory/AdjustingLocations.pdf.  

Due to the shelter-in-place order, questions about submission of these reports should be emailed to the DWC Audit Unit at DWCAuditUnit@dir.ca.gov.

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