Using a mainframe or Internet connection, distributors and insurance carriers can use ACATS/IPS to electronically communicate distributor change information, in addition to non-financial contract changes such as custodial owner updates and beneficiary updates, when applicable. The service provides request and confirmation messaging, as well as soft-reject capabilities for correctable errors. Features include:
- Insurance registration (IR). Within the ACATS system, it allows distributors to include customer account-transfer requests for insurance products as part of an automated process already established for other financial assets, such as mutual funds. The IR request is initiated through ACATS and facilitates the re-registration of annuity information at the carrier. It also allows for necessary changes to representative of record (REP), brokerage-identification number (BIN), beneficiary and owner information.
- Automated customer account transfer (CAT). This is the transaction that is created from the distributor-initiated IR record that is sent to the carrier via the In-Force Transaction (IFT) service. It provides all the necessary information that a carrier would need to perform a distributor of record change. Once complete, the carrier will send a CAT confirmation back to the distributor to provide final status.
- Change of representative of record (REP). This transaction is used when a carrier rejects a CAT transaction due to a rep-related reason that is quickly correctable. The REP transaction facilitates a correction of agent information, within the distribution firm, on a contract.
- Change of Beneficiary (BEN). This transaction is used when a broker/dealer needs to communicate more than one beneficiary supported on the Insurance Registration (IR) record.
- Broker Identification Number (BIN). Automation within the IFT process delivers communications efficiently between distributors and insurance carriers. The BIN creates standardization and exists in a secure, controlled environment that enables users to access automated reporting, tracking and status changes.