Annual Premium Volume and Insurance Compact Filing Fees
February 23, 2017
This week's Weekly Tip is the second in a series about calculating filing fees for Insurance Compact products. Last week, we reviewed the information found in the Filing Fee Rule that is essential to determining filing fees due at the time of the product submission. This week, we will provide information on one of the two key variables that are used to calculate the proper Insurance Compact filing fees ? annual premium volume.
The first variable in determining filing fees is the company's annual premium volume, as reported under Schedule T Part 2 of the Annual Financial Statement filed with the NAIC in the calendar year prior to the current year ? i.e. for 2017 filing fees, the 2015 data that was filed in 2016 is used to verify the proper filing fee category for each company at the time of Registration. Schedule T Part 2 was specifically developed to report premium volume attributable to the asset-based Compact product lines?life insurance, annuities, long-term care insurance and disability income insurance.
Annual premium volume impacts both the annual registration fee and the product filing fee. For annual registration, companies that report a premium volume greater than $50 million are required to pay $5,000 per registering company at the time of registration; companies with a premium volume less than $50 million are required to submit $2,500 per registering company. There is also a regional filer category available for companies licensed to do business in 12 or fewer Compact member states. All registration fees are pro-rated to 50% of the annual fee, effective July 1.
For product filing fees, the same $50 million annual premium volume distinction applies. The 2017 IIPRC Filing Fee Schedule shows different applicable fees in two columns, based on the company's annual premium volume.
In next week's Weekly Tip, we will review the actuarial review distinction for determining filing fees. 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.