In-Force Transactions

DTCC’s In-Force Transactions supports both financial and non-financial actions for post issue policies. This allows distributors to submit requests through mainframe, real-time web messaging, or a simple web interface, via DTCC Portal. In-Force Transactions are an offering of National Securities Clearing Corporation (NSCC), a DTCC subsidiary.

• About

  DTCC’s Insurance & Retirement Services (I&RS) developed the multiple In-Force Transactions set to replace error-prone, manual and paper-based post-issue activities with straight-through, electronically signed paperwork, automated processes — from request through to transaction confirmation.

  With I&RS providing a secure, centralized and standardized system, carriers and distributors both gain greater transparency into the myriad transactions that occur between carriers and producers. This access to data also supports regulatory demands for greater oversight of post-issue transaction activity. The range of financial and non-financial transactions include:

  FINANCIAL TRANSACTIONS:

  • Arrangement Setup and Maintenance
  • Financial Withdrawals
  • Fund Transfers
  • Values Inquiry

  NON - FINANCIAL TRANSACTIONS:

  • Broker/Dealer of Record (BDR) Changes
  • Brokerage Identification Number (BIN) Changes
  • Death Notifications
  • Policy Administration Request (Party, Address & Communication Changes)
  • Policy Administration Inquiry
  • Representative of Record (REP) Changes

• Who Can Use The Service

  In-Force Transactions are available to firms that are members of NSCC and clients of I&RS.

• Benefits

  • In-Force Transactions simplify the way insurance products are serviced
  • Decreases operating costs by reducing manual processes and physical paperwork
  • Automated and standardized system provides transparency into transaction between carriers and producers
  • Easy-to-use, secure interface
  • Efficiently provides a faster method of submitting information changes on insurance policies executed by the firms who market these products
  • Supports regulatory demands for oversight into market activity

• How the Service Works

  Using one of the DTCC connectivity options (dedicated, internet, DTCC Portal), participating distributors can send and receive changes through DTCC. There are multiple ways a transaction can be submitted for processing to DTCC (web service, mainframe batch or via DTCC).

  The In-Force Transactions functionality routes transactions between distributors and insurance carriers using XML or batch mainframe technologies to request and receive requests to support numerous post issue transactions.

  The In-Force Transactions are comprised of the following key post-issue transactions, via XML real time messaging capabilities:

  • Arrangements is a one-time change to a service feature on an insurance contract. Arrangements can consist of the following programs such as Systematic Withdrawals, Dollar Cost Averaging, Automatic Payments, Asset Allocation, etc.
  • Death Notification provides the insurance carrier with a notification that a death has occurred to one or more parties to the in force/active policy or contract.
  • Financial Withdrawals is a one-time full or partial redemption of funds from an insurance contract.
  • Fund Transfer is a direct exchange or on-time reallocation of the underlying funds within a variable insurance asset. This request includes modifications to the service features affected by the exchange.
  • Policy Administration provides a defined set of changes to an in force/active policy or contract. This message supports both party and communication changes.
  • Values Inquiry is used to return various policy values for a specific in force/active policy or contract. The Values Inquiry transaction begins the Financial Withdrawals, Fund Transfers, and Arrangements transaction messages.
  • Policy Administrative Inquiry is used to obtain the policy information needed specifically to perform basic policy administration activities. This message allows the distributor or vendor platform to gather necessary information about an in force/active policy to determine the administrative changes that are allowed. The Policy Administrative Inquiry transaction begins a Policy Administration transaction message.

  In addition, there are two mainframe, batch formats to support the following transactions:

  • Change of representative of record facilitates a change of agent information, within the distribution firm, on a single contract or policy.
  • Broker Identification Number transaction delivers instructions to network or link a policy within a brokerage account.

• For More Information

  Please email us at [email protected] or fill out a contact us form.