Weekly Tip: Calculating Insurance Compact Filing Fees

 

Weekly Tips

Calculating Insurance Compact Filing Fees

2/17/2017

This week's Weekly Tip is the first in a series about calculating filing fees for Insurance Compact products. In this week's tip, we will start with background information about determining state and Compact filing fees due at the time of your product submission. Information pertaining to both fees may be found on the Insurer Resources page of the Insurance Compact website.

The Insurance Compact's Schedule of Fees is published on an annual basis in conjunction with the Insurance Compact's annual operating budget. There were no changes to the Schedule of Fees for 2017. As defined in Section 102 of the IIPRC Terms and Procedures for IIPRC Filing Fees, the Insurance Compact's fees apply per product and per company included in a submission. "Product" is defined to mean a policy or a contract, including any application, endorsement, or related form which is attached to and made part of the policy or contact, including any evidence of coverage or certificate for individual and group life, annuity, long-term care, and disability income products that an Insurer is authorized to issue.

If a filing does not contain a policy, contract or certificate, it is considered to contain one product. For example, a filing with three riders and one application for use by one company is considered to contain one product. The Insurance Compact filing fees are not required per form.

Member State Filing Fees are reviewed with each individual state on an annual basis. The purpose of this review is to make sure that the information we publish and enforce is accurate and properly interpreted. Any updates to state filing fee information are distributed to all company filers via email and posted to the Insurance Compact website.

Next week we will dig into how the Insurance Compact filing fees are based on two key variables: (1) each filing company's premium volume and (2) whether the specific filing submission requires an actuarial review under the applicable Uniform Standards. If you have any questions regarding the calculation of the filing fees – either state or the Insurance Compact fees – please reach out to the Insurance Compact Office.