The Replacement Processing service will enable insurance carriers to send annuity 1035 exchange, transfer or rollover information and distributors to receive pending case status information in a secure and standardized environment.

Overview

DTCC I&RS Replacement Processing service will enable insurance carriers to send annuity 1035 exchange, transfer or rollover information and distributors to receive pending case status information in a secure and standardized environment. This process will include functionality supporting attachment documentation and money settlement automation between insurance carriers.

How the Service Works

Replacement Processing will use an automated, centralized system to electronically link and network insurance carriers and distributors as they exchange information to support a customer’s replacement request for ‘like- for-like’ fixed or variable annuities contracts.

Using a mainframe or secure Internet connection, insurance carriers will be able to transmit replacement request/notification and status information back and forth through the DTCC SMART Network. The New Business replacement carrier will be able to inform their distributor partners of their latest pending case status information.

Features

Features of DTCC I&RS Replacement Processing will include:

• Standardized message automation to help facilitate efficiencies for “In-Good-Order” replacements.
• Money settlement interface for surrendered contracts that will be consolidated with other transaction obligations into one credit or debit at the end of the day, to each participant.
• Attachment of replacement documentation to satisfy carrier requirements for “In-Good-Order” transaction processing.

Benefits

DTCC I&RS Replacement Processing will help carriers communicate the customer request for a replacement transfer in a standardized, automated manner for greater efficiency and lower operational risks.

With Replacement automation, users can:

• Satisfy the customer’s intention to replace a contract promptly and efficiently.
• Reduce processing cost by reducing the manual, labor intensive process of fax, mail and phone of information between carriers.
• Reduce check processing
  • no more printing of checks
  • eliminate lost checks causing stop payments and reissuing
• Reduce “Not-In-Good Order” (NIGO) rates.
• Save on labor costs by reduced manual processing.
• Help facilitate straight-through processing by not requiring the receiving carrier officer ‘wet signatures’ on Transfer of Asset paperwork.
• Maintain the maximum conservation period, while anticipating a reduction in processing time thereafter.
• Expect prompt notification and confirmation between carriers.
• Apply attachment documents to meet carrier requirements.
• Apply money settlement of the replacement transaction between carriers.
• Support internal compliance by building an audit trail from transaction statuses of replacement activity.
• Keep distributor partners updated on the current status to their replacement pending cases.

For More Information

Please contact Insurance & Retirement Services at 1-888-382-2721, or email us at insurance@dtcc.com.