Weekly Tip: Updating Compact-Approved Application Format

Weekly Tips

Updating Compact-Approved Application Format


Is your company looking at ways to facilitate social distancing by expanding paper applications to electronic or telephonic use? If so, read on! We have compiled several facts and pointers for you to keep in mind when deciding what type of filing is needed to enable these changes if none of the language of the approved form(s) is changing.

How can a company filer update an approved filing to reflect the use of an additional format?

Filing Information Notice (FIN) 2017-1 governs the process for revisions to forms and supporting documentation in Compact filings.

If there is a change to the format of the application or the company?s procedures to verify the authenticity of an electronic or telephonic transaction, either an amendment or Supporting Documentation Update (SDU) filing is required to update compliance with the Application Use submission requirement. Both methods require Compact filing fees. An SDU filing may also require state filing fees; for more information, please see the Member State Supporting Documentation Update Fees chart published on the Insurer Resources page of the Insurance Compact website.

  • Per FIN 2017-1, if a filing was approved fewer than 90 days ago and has not been implemented, the filing can be reopened to amend the Application Use section.
  • If the filing has surpassed the 90-day threshold that would allow it to be reopened for certain changes, you can update the filing for the electronic application process by submitting a new SDU filing, provided there are no changes to the approved form language. Create the new filing, provide the necessary supporting documentation, including the Application Use submission requirement on the Supporting Documentation tab, and associate the original filing(s) to the new SDU filing.

What provisions of the application uniform standards should filers refer to when preparing to update their filing(s)?

The application uniform standards all contain a provision requiring the filer to identify the format in which the application will be used. In the Individual Life Application Uniform Standards (IIPRC-L-I-APP), this provision is Section 1A(10). Note: this requirement is different from Section 3L, which concerns electronic delivery of the product forms and other notices upon and after policy issue.

(10) A statement of how the application will be used, such as paper, electronic, and/or telephonic. For electronic and telephonic uses, the company shall:

(a) Describe the procedures that will be used to verify the authenticity of the transaction; and [?]

Additionally, for telephonic uses the company shall describe the process by which the applicant is given the completed application for signature prior to or on the date the policy is issued

  • For compliance with part (a) of this requirement, an explanatory paragraph is sufficient to explain the authentication process. We do not need sample attachments or vendor specifications. Requirements under UETA and ESIGN are outside of the form content requirements of the Uniform Standards.
  • Filers can provide the e-sign authentication for several previously approved forms in a single SDU filing.

If you have any questions about updating Compact filing, or about filing with the Insurance Compact in general, please contact the Insurance Compact Office.