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Status of Ancillary Non-Insurance Benefit Forms/Provisions

The Compact is not accepting for review or approval form provisions or rider, endorsement or amendment forms offering generic description of goods and services, more commonly referred to as value-added services. The Compact membership has declined to develop a Uniform Standard for value-added services and due to the lack of uniformity on this issue among Compacting states, they have directed the Compact Office to no longer approve value-added services language in Compact forms as outside scope of current Uniform Standards. Several states, especially the ones who have adopted the model amendments to the unfair trade practice law, prohibit this language from being in the contract and have a concern that the Compact is allowing it in Compact-approved products especially without a detailed standard.

If a filing contains such provisions in product forms or in a separate, stand-alone form, the filer will be directed to remove the provisions from the forms and/or withdraw the stand-alone form. Going forward, depending on state requirements, filing with states a stand-alone form to provide value-added services language may be permitted using mix and match.

The Call Summary from the Product Standards Committee February 4, 2025, meeting has additional information regarding the discussion of developing a uniform standard for the submission and review of value-added services.  

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