The enhancements in this release will affect the following functionalities:

Transcription

1 A#: 6850 P&S# 6420 Date: July 29, 2009 To: ALL PARTICIPANTS Attention: MANAGERS; OPERATIONS DEPT FOR ANNUITIES & LIFE INSURANCE, BROKERAGE OPERATIONS, INFORMATION SYSTEMS From: NSCC Insurance & Retirement Services Subject: Insurance and Retirement Processing Services 2009 September Enhancement Release Overview: In order to support industry requests, the Insurance and Retirement Processing Services (I&RS) has scheduled an enhancement release for September This is the second of two scheduled enhancement releases for IPS Enhancement Releases include User Group Enhancement Requests submitted by participants, as well as maintenance items National Securities Clearing Corporation ( NSCC ) deems necessary to improve the overall operational performance of the system. The enhancements in this release will affect the following functionalities: APP/SUB - Initial Application and Subsequent Premium FAR Financial Activity Reporting FTR Fund Transfers IAT Insurance Attachments IFT Inforce Transactions ((including ACATS/IPS) POV - Positions and Values, which is made up of 3 types: PVF Positions & Values Full Refresh File PNF Positions New Business File PFF Positions Focused File DTCC is now offering enhanced access to all important notices via a new, Web-based subscription service. The new notification system leverages RSS Newsfeeds, providing significant benefits including real-time updates and customizable delivery. To learn more and to set up your own DTCC RSS alerts, visit 1

2 Important Note: There are mandatory changes as part of this release. Please see requirements document for detail on what changes are optional and which ones are required. To view requirements document, see instructions in Specification Documents section of this notice. Schedule: Test Thursday, August 27, 2009 Production Thursday, September 24, 2009 Specification Documents: Documentation is available at the I&RS website, Click on the Participant Section and then Enhancements. To view the actual enhancement requests, click on Enhancements Approved for Future Release. To view Draft Layouts, Requirements Document and applicable Standard Usage, click on Current Draft Layouts and Specification Documents (most current release). The following documentation will be listed. All changes to the record layouts will be highlighted in yellow. Items may be added to the list below if necessary September Requirements Document Flat Files: Draft APP/SUB Record Layouts Draft FAR Record Layouts Draft IFT Record Layouts Draft POV Record Layouts Web Services: Draft FTR Schema Draft IAT Schemas Release Specifications: The following information indicates the exact changes made to the record layouts. These changes are based on the approved recommendation made by the originator of the enhancement request. The actual enhancement request can be found at our website under IPS Enhancements Approved for Future Release in the User Group section of our website. Do not use the enhancement documents for programming. The draft record layouts and detailed specification document should be used for this purpose. The original enhancement request forms are provided to understand the business purpose of the change. 2

3 1. APP/SUB Applications and Subsequent Premiums IPS /35-02 Changes to Contract Date Record - Optional In an effort to support new dates that are required as part of an application submission, the APP/SUB file is being modified to include a date specific record which will be used to provide any dates applicable to the contract. The record will offer multiple occurrences of a generic Contract Date field and an associated qualifier that will indicate what kind of date is being referenced. The new Date Record will become the 33/35-02 record and replace the existing (Application Aggregation Record). Based on survey results of Distributors, Carriers and Order Entry Vendors, the (in its current form) was not utilized. It was recommended by the IPS Advisory Group to reengineer the into the Date Record instead of adding a brand new record. In addition, as part of this enhancement, several date qualifier codes have been added to support additional dates required as part of the application process (see 4278 code list below) Record Layout changes: 1. For record, rename Application Date (4030) to Agent Submitted Date. This is more in synch with how the field is currently used. The old definition defined the date as used for the signed/solicited date. In reality, these are different dates. Old Definition: The calendar date when the application was signed/solicited. New Definition: The agent (or their assistant) completes the electronic order (including all static information and contract elections). Then depending on the Distributor process, the application will go for applicable review at the Distributor or be transmitted to the Carrier. 2. Reconstruct record: record will be renamed Application Date Record (previously Application Aggregation Record). A will be offered to support dates needed for a Subsequent Premium (SUB) transaction. Application Date record will provide space for a maximum of 20 dates per Date Record (33/35-02). It will also allow for a maximum of 5 occurrences of 33/35-02 per 33/35-01 record. This provides space for a maximum of 100 dates per application / subsequent premium. 3

4 Add the following fields: Contract Date 1 bytes 26-33, Contract Date 1 Qualifier bytes Contract Date 2 bytes 37-44, Contract Date 2 Qualifier bytes Contract Date 3 bytes 48-55, Contract Date 3 Qualifier bytes Contract Date 4 bytes 59-66, Contract Date 4 Qualifier bytes Contract Date 5 bytes 70-77, Contract Date 5 Qualifier bytes Contract Date 6 bytes 81-88, Contract Date 6 Qualifier bytes Contract Date 7 bytes 92-99, Contract Date 7 Qualifier bytes Contract Date 8 bytes , Contract Date 8 Qualifier bytes Contract Date 9 bytes , Contract Date 9 Qualifier bytes Contract Date 10 bytes , Contract Date 10 Qualifier bytes Contract Date 11 bytes , Contract Date 11 Qualifier bytes Contract Date 12 bytes , Contract Date 12 Qualifier bytes Contract Date 13 bytes , Contract Date 13 Qualifier bytes Contract Date 14 bytes , Contract Date 14 Qualifier bytes Contract Date 15 bytes , Contract Date 15 Qualifier bytes Contract Date 16 bytes , Contract Date 16 Qualifier bytes Contract Date 17 bytes , Contract Date 17 Qualifier bytes Contract Date 18 bytes , Contract Date 18 Qualifier bytes Contract Date 19 bytes , Contract Date 19 Qualifier bytes Contract Date 20 bytes , Contract Date 20 Qualifier bytes Edit Rules: If 33/ record is sent, Contract Date 1 and Contract Date 1 Qualifier are mandatory. Contract Date 2 thru 20 and Qualifier 2 thru 20 are optional and optional/conditional, respectively. If a Contract Date is filled, then the corresponding qualifier must be filled. If the Contract Date is not filled, the corresponding qualifier should be spaces. Unused Contract Date fields should be spaces. Date field format - CCYYMMDD (ex - September 24, 2009 = ) 3. Code List 4278 Contract Date Qualifier Code List Add: a Solicitation Date Definition: The date in which the Agent first proposes to the client the use of an insurance product, which may or may not be in response to an engagement/planning process. a. 02 Client Agreement Date Definition: The date that the client agrees to purchase the insurance product presented. 4

5 a. 03 Application Signed Date Definition: The date the authorized entity signs the Application. a. 04 IRS Qual Code Origination Date (part of IPS00311) Definition: This date represents when the qualified plan originated. Not related to when investments within the plan originated. IPS00305 Internal Exchange Indicator Edit Change - Optional Record (Premium Type) Record Item #4070 Internal Exchange Indicator The Internal Exchange Indicator is a field that enables a Distributor to explicitly tell whether a 1035 exchange is an internal or external transaction. Currently, the field is only allowed when a premium comes from a full or partial 1035 exchange. This enhancement will change the rule to allow this field to be used for Rollovers and Qualified Transfer premium types as well. Current Edit: Currently, for Internal Exchange Indicator (4070), the indicator is optional when Premium Type (record 33/06 item 4063) is Q2 (Full 1035 Exchange) or Q3 (Partial 1035 Exchange). For all other Premium Type codes, the Internal Exchange Indicator is not permitted and must be a space. Edit Change: Internal Exchange Indicator will now be permitted for the following additional Premium Type codes: 4I Direct Rollover 4J Indirect Rollover Q4 Qualified Transfer The new edit validation will be as follows: If the Premium Type (4063) is Q2, Q3, 4I, 4J or Q4, then the Internal Exchange Indicator (4070) is optional. If the Premium Type is any other code, 4070 should be a space. 5

6 IPS00308 IRS Qual Plan Code Add Non Qualified Stretch Plan - Optional IPS00315 IRS Qual Plan Code Add 412i - Optional IPS00320 IRS Qual Plan Code Remove Stretch IRA from list Required, if code is currently being used. Record Layout changes: Code List 4034 IRS Qualification Code List Add: a Non-Qualified Stretch Plan Definition: An annuity that allows the death benefit from a non-qualified annuity to be paid out over a period of time based on the beneficiary's life expectancy. Stretch is a popular term used to describe this payment option because the beneficiary can "stretch" the death benefit payments over his/her own life expectancy versus receiving the entire death benefit in one lump sum payment or by the fifth anniversary of the deceased's death. b (i) Plan Definition: The 412(i) plan is a tax-qualified, defined benefit pension plan for business owners and their employees. The funding requirements must fall under IRC Section 412(i). If a plan meets the requirements of this subsection, it is exempt from the complex funding rules of Section 412 of the Internal Revenue Code applicable to all other defined benefit plans. Delete: a Stretch Plan Reason for Removal: NAVA Data Conformity Group made a recommendation to remove one of the IRS Qual Codes, either Stretch IRA (1313) or Inherited IRA (1314). The group indicated that both codes mean the same thing. ACORD agreed to remove the Stretch IRA code. To keep in synch, the IPS Advisory Group agreed to move that code as well. Therefore, firms using 1313-Stretch IRA should now use 1314-Inherited IRA. IPS00309 Originals to Follow Indicator Required if field is being used, otherwise optional The Originals to Follow Indicator was originally added to the (Attachments Record) to inform Carriers that original paperwork will be sent in following an application. Since there are many types of paperwork associated with an application, having this indicator on the 33-44, which is a contract level record, would not provide enough information about what the originals pertained to. The real need, from an application standpoint, was to know if the original replacement paperwork was being sent to the Carrier. Therefore, it was felt that a more appropriate place for this field was at the 1035 exchange 6

7 record level. Putting it at the 1035 Exchange ( ) record allows a Distributor to indicate the exact 1035 exchange the indicator is pertaining to. Record Layout Change: Item 4297 Originals to Follow Indicator will move from 33/35-44 record to 33/35-13 record 33/35-44 record change byte 64 to filler Add new field to 33/35-13 record: a. Field Name: Originals to Follow Indicator b. Byte 148 c. 1 Byte d. Alpha/Numeric format e. Edit: Y, N or Space are only allowable values a. Y = Original will follow, N = Original will not follow, Space = Information Not Provide / Field Not Used f. Optional g. Continue to use Item Number 4297 h. Continue to use Reject Code 371 IPS00312 Contract Relationship Record changes to support foreign entity status Info Required if record is being used To satisfy Anti-Money Laundering (AML) requirements, Carriers need to know whether the owners, joint owner, and annuitants of the contract have foreign status. In the APP/SUB, this can be accomplished by receiving the Tax Status information currently provided in the (Entity Relationship) Record. The Tax Status field currently has 3 codes: Resident Alien, Non-Resident Alien or U.S. Citizen. However, the record is currently an optional field. A proposal was made to make the record required when the entity is Natural (Person) entity. Edit Change: Make the record required when the Natural/Non-Natural Entity Name Indicator = N (byte 39) on the record. When the is sent and the is set to natural entity (N), Contract Entity Relationship (4093), Contract Entity Gender (4098) and Contract Entity Tax status (4102) will now be required fields. If the record is sent and the record is set to non-natural entity (X), the fields will continue to be optional. IPS00313 Application Form Included Indicator - Optional The Application Form Indicator informs a Carrier that the application document will be included in the corresponding New Business Attachment (IAT) message. Carriers can benefit from knowing when an application is or is not expected so they may take appropriate business actions based on that information. 7

8 Add new field to record: a. Field Name: Application Form Included Indicator b. Byte 65 c. 1 Byte d. Alpha/Numeric format e. Edit: Y, N or Space are only allowable values f. Optional g. Not used for SUB (35-44 record) h. Item Number IPS00316 Trust Revocability Indicator Required Change When an Agent requests an application with a Trust as the owner and/or beneficiary, there is no place to capture whether the trust is revocable or irrevocable. This information is needed to reduce NIGO transactions. History of Enhancement: Identifying Revocable/Irrevocable trusts was originally part of IPS00279, which was scheduled for March 2009 implementation. In IPS00279, a proposal was made to add new Contract Entity Qualifiers for Irrevocable Trust and Revocable Trust to replace the generic Trust code (5). There were concerns regarding the inability of some Carriers to be able to support the Revocable/Irrevocable Trust indication on POV and FAR since the information may not be known. Some firms were going to continue to send 5 - Trust for all contracts (specifically older contracts), even though the description has been changed to Revocable Trust and new code was added for Irrevocable Trusts (9). As a result, in Feb 09, the IPS Advisory Group recommended to postpone the revocable/irrevocable trust identification change (IPS00279) scheduled for the March 2009 release. In POV, FAR and APP/SUB, firms would continue to use the entity role of 5-Trust. The group recommended reintroducing the enhancement as part of the September 2009 release in a new form. This time, the ability to identify whether a trust was revocable or irrevocable would be done in a separate indicator, separate from the Contract Entity Qualifier. It would be required for APP, and optional for POV and FAR. Add new field to record: a. Field Name: Trust Revocability Indicator b. Byte 145 c. 1 Byte d. Alpha/Numeric format e. Optional/Conditional f. Item 4080 g. Edit: R (Revocable), I (Irrevocable) or Space are only allowable values h. Edit: If 4082 (Contract Entity Role Qualifier) = 5 Trust, then Revocable/Irrevocable Trust Indicator is Required. If not 5, then optional. IPS00318 Electronic Delivery Indicator - Optional As all firms continue to find ways to eliminate paper, some Carriers are including information on their applications on whether an applicant and/or agent want e-delivery of paperwork. This enhancement 8

9 will add an indicator to inform Carriers that the contract entity and/or agent are interested in being setup for e-delivery. Although, the APP will allow this information to be provided, it is still up to the Carriers internal process to determine the required steps in setting up this feature. Add new field to record: i. Field Name: Electronic Delivery Indicator j. Byte 168 k. 1 Byte l. Alpha/Numeric format m. Optional n. Edit: Y, N or Space are only allowable values i. Y = Contract Entity is interested in being setup for E-Delivery ii. N = Contract Entity is not interest in being setup for E-Delivery iii. Space = Information not provide / Field not used o. Item Number Add new field to record: p. Field Name: Electronic Delivery Indicator q. Byte 86 r. 1 Byte s. Alpha/Numeric format t. Optional u. Edit: Y, N or Space are only allowable values i. Y = Agent is interested in being setup for E-Delivery ii. N = Agent is not interest in being setup for E-Delivery iii. Space = Information not provide / Field not used v. Item Number Change Name of from Agent Phone Numbers Record to Agent Communication Record 9

10 2. FAR Financial Activity Reporting IPS00268 FAR Process Date Required Change In order to promote standard usage, the process date on the Transaction Record (43-05) will be changed from optional to required. This will now enforce that the Carrier sends both effective date and process date on every transaction. It is acceptable for effective date and process date to be the same date if warranted. Record Layout changes: Make Process Date (bytes ) on record required (currently optional) Currently Process Date has same item number as Effective Date, which is Item number will be reassigned to IPS00308 IRS Qual Plan Code Add Non Qualified Stretch Plan - Optional IPS00315 IRS Qual Plan Code Add 412i - Optional IPS00320 IRS Qual Plan Code Remove Stretch IRA from list Required, if code is currently being used. Record Layout changes: Code List 5023 IRS Qualification Code List Add: a Non-Qualified Stretch Plan Definition: An annuity that allows the death benefit from a nonqualified annuity to be paid out over a period of time based on the beneficiary's life expectancy. Stretch is a popular term used to describe this payment option, because the beneficiary can "stretch" the death benefit payments over his/her own life expectancy versus receiving the entire death benefit in one lump sum payment or by the fifth anniversary of the deceased's death. b (i) Plan Definition: The 412(i) plan is a tax-qualified, defined benefit pension plan for business owners and their employees. The funding requirements must fall under IRC Section 412(i). If a plan 10

11 meets the requirements of this subsection, it is exempt from the complex funding rules of Section 412 of the Internal Revenue Code applicable to all other defined benefit plans. Delete: a Stretch Plan Reason for Removal: NAVA Data Conformity Group made a recommendation to remove one of the IRS Qual Codes, either Stretch IRA (1313) or Inherited IRA (1314). The group indicated that both codes mean the same thing. ACORD agreed to remove the Stretch IRA code. To keep in synch, the IPS Advisory Group agreed to move the code as well. Therefore, firms using 1313-Stretch IRA should now use 1314-Inherited IRA. IPS00316 Trust Revocability Indicator Optional When an Agent requests an application with a Trust as the owner and/or beneficiary, there is no where to capture whether the trust is revocable or irrevocable. This information is needed to reduce NIGO transactions. History of Enhancement: Identifying Revocable/Irrevocable trusts was originally part of IPS00279, which was scheduled for March 2009 implementation. In IPS00279, a proposal was made to add new Contract Entity Qualifiers for Irrevocable Trust and Revocable Trust to replace the generic Trust code (5). There were concerns regarding the inability of some Carriers to be able to support the Revocable/Irrevocable Trust indication on POV and FAR since the information may not be known. Some firms were going to continue to send 5 - Trust for all contracts (specifically older contracts), even though the description has been changed to Revocable Trust and new code was added for Irrevocable Trusts (9). As a result, in Feb 09, the IPS Advisory Group recommended to postpone the revocable/irrevocable trust identification change (IPS00279) scheduled for the March 2009 release. In POV, FAR and APP/SUB, firms would continue to use the entity role of 5-Trust. The group recommended reintroducing the enhancement as part of the September 2009 release in a new form. This time, the ability to identify whether a trust was revocable or irrevocable would be done in a separate indicator, separate from the Contract Entity Qualifier. It would be required for APP, and optional for POV and FAR. Add new field to (Contract Entity) record: a. Field Name: Trust Revocability Indicator b. Byte 243 c. 1 Byte d. Alpha/Numeric format e. Optional f. Item 5132 g. Edit: R (Revocable), I (Irrevocable) or Space are only allowable values 11

12 h. Field should only be considered when Contract Entity Type (5029) is a Trust (5). Note: DTCC will not require the Trust Revocability Indicator to be filled when Trust is 5. It is optional. 12

13 3. IFT Inforce Transactions IPS00306 Cusip on BIN Edit Change - Optional On the stand-alone BIN transaction, CUSIP Number is currently a required field. After further analysis, there is no real business need for this to be required and a request was made to make the field optional. Changing this field to optional would allow users of IFT and IFT Access to input BIN transactions without the CUSIP Number, which many users do not know during time of submission. Edit Change: On the BIN transaction for IFT, the CUSIP Number field (7038) should be changed from required to optional for both Distributor request and Carrier confirm. IPS00308 IRS Qual Plan Code Add Non Qualified Stretch Plan - Optional IPS00315 IRS Qual Plan Code Add 412i - Optional IPS00320 IRS Qual Plan Code Remove Stretch IRA from list Required, if code is currently being used. Record Layout changes: Code List 7039 IRS Qualification Code List Add: a Non-Qualified Stretch Plan Definition: An annuity that allows the death benefit from a nonqualified annuity to be paid out over a period of time based on the beneficiary's life expectancy. Stretch is a popular term used to describe this payment option, because the beneficiary can "stretch" the death benefit payments over his/her own life expectancy versus receiving the entire death benefit in one lump sum payment or by the fifth anniversary of the deceased's death. b (i) Plan Definition: The 412(i) plan is a tax-qualified, defined benefit pension plan for business owners and their employees. The funding requirements must fall under IRC Section 412(i). If a plan meets the requirements of this subsection, it is exempt from the complex funding rules of Section 412 of the Internal Revenue Code applicable to all other defined benefit plans. Delete: a Stretch Plan 13

14 Reason for Removal: NAVA Data Conformity Group made a recommendation to remove one of the IRS Qual Codes, either Stretch IRA (1313) or Inherited IRA (1314). The group indicated that both codes mean the same thing. ACORD agreed to remove the Stretch IRA code. To keep in synch, the IPS Advisory Group agreed to move the code as well. Therefore, firms using 1313-Stretch IRA should now use 1314-Inherited IRA. 14

15 4. POV Positions and Values IPS00301 Service Feature Type Code Change Required if record is used An issue was discovered with POV Code Lists 3611 (Service Feature Type) and 3612 (Service Feature Sub-Type) on the Service Feature (13-15) Record. These codes are based on the ACORD standard code lists. A couple of codes were detected as out of synch with the ACORD list and needed to be corrected. Code Changes: In Code List 3611 (Service Feature Type): o Interest Rate Option should be code 217 (based on ACORD). DTCC had the code as 216. o Initial Premium should be code 19. DTCC incorrectly had the code in the POV layout as 37. In the std usage, it was and still is correctly indicated as code 19. o Standing Allocation should be code 37. DTCC incorrectly had the code in the POV layout as 19. In the std usage, it was and still is correctly indicated as code 37. In Code List 3612 (Service Feature Sub-Type): o Updated "Corresponding Service Feature Type" column in POV Record Layout Code List to reflect correct codes from above o For codes 37, 38, 39, 40 the corresponding SF Type Code should be changed to 217 (instead of 216) POV Layout will be updated to reflect this change. o For codes 21, 22 the corresponding SF Type Code should be changed to 37 (instead of 19). o For code 23 the corresponding SF Type Code should be changed to 19 (instead of 37). (see POV Draft Record Layouts Code List for detail on code changes) IPS Loop Limit Increase Optional for Carriers, Required for Distributors* *Distributors must be prepared to receive more than 99 occurrences of the record Currently the (Contract Underlying Assets Record) in the POV file loops 99 times. This request is to increase the looping to 999 maximum occurrences. This is specifically needed for pension contracts. These contracts are at the Plan level, so it shows the owner of the plan and all funds in the plan. In these circumstances, it is possible to show hundreds of underlying funds within one contract. Record Layout changes: o Expand loop limit maximum occurrence from 99 to 999 occurrences. IPS00308 IRS Qual Plan Code Add Non Qualified Stretch Plan - Optional IPS00315 IRS Qual Plan Code Add 412i - Optional 15

16 IPS00320 IRS Qual Plan Code Remove Stretch IRA from list Required, if code is currently being used. Record Layout changes: Code List 3031 IRS Qualification Code List Add: a Non-Qualified Stretch Plan Definition: An annuity that allows the death benefit from a nonqualified annuity to be paid out over a period of time based on the beneficiary's life expectancy. Stretch is a popular term used to describe this payment option, because the beneficiary can "stretch" the death benefit payments over his/her own life expectancy versus receiving the entire death benefit in one lump sum payment or by the fifth anniversary of the deceased's death. b (i) Plan Definition: The 412(i) plan is a tax-qualified, defined benefit pension plan for business owners and their employees. The funding requirements must fall under IRC Section 412(i). If a plan meets the requirements of this subsection, it is exempt from the complex funding rules of Section 412 of the Internal Revenue Code applicable to all other defined benefit plans. Delete: a Stretch Plan Reason for Removal: NAVA Data Conformity Group made a recommendation to remove one of the IRS Qual Codes, either Stretch IRA (1313) or Inherited IRA (1314). The group indicated that both codes mean the same thing. ACORD agreed to remove the Stretch IRA code. To keep in synch, the IPS Advisory Group agreed to move the code as well. Therefore, firms using 1313-Stretch IRA should now use 1314-Inherited IRA. ACATS Layout Change: Code changes list above will also be made to IRS Qualification Code List in ACATS Asset Transfer (AT) Record. IPS00316 Trust Revocability Indicator Optional When an Agent requests an application with a Trust as the owner and/or beneficiary, there is no where to capture whether the trust is revocable or irrevocable. This information is needed to reduce NIGO transactions. 16

17 History of Enhancement: Identifying Revocable/Irrevocable trusts was originally part of IPS00279, which was scheduled for March 2009 implementation. In IPS00279, a proposal was made to add new Contract Entity Qualifiers for Irrevocable Trust and Revocable Trust to replace the generic Trust code (5). There were concerns regarding the inability of some Carriers to be able to support the Revocable/Irrevocable Trust indication on POV and FAR since the information may not be known. Some firms were going to continue to send 5 - Trust for all contracts (specifically older contracts), even though the description has been changed to Revocable Trust and new code was added for Irrevocable Trusts (9). As a result, in Feb 09, the IPS Advisory Group recommended to postpone the revocable/irrevocable trust identification change (IPS00279) scheduled for the March 2009 release. In POV, FAR and APP/SUB, firms would continue to use the entity role of 5-Trust. The group recommended reintroducing the enhancement as part of the September 2009 release in a new form. This time, the ability to identify whether a trust was revocable or irrevocable would be done in a separate indicator, separate from the Contract Entity Qualifier. It would be required for APP, and optional for POV and FAR. Add new field to (Party) record: a. Field Name: Trust Revocability Indicator b. Byte 179 c. 1 Byte d. Alpha/Numeric format e. Optional f. Item 3818 g. Edit: R (Revocable), I (Irrevocable) or Space are only allowable values h. Field should only be considered when Party Role Qualifier (3816) is a Trust (5). Note: DTCC will not require the Trust Revocability Indicator to be filled when Trust is 5. It is optional. IPS Record Edit Change Required for Distributors* *Distributors must be prepared to receive a record without a Contract Value Amount #1 filled. An issue with the (Contract Valuation Record) was detected with the addition of new Contract Percent Amt Qualifiers as part of the March Release. Currently, the record has 5 occurrences of Contract Value Amount (which is in $) and 3 occurrences of Contract Percentage Amount. The record requires the Contract Value Amount #1 to be filled in each occurrence of the record. With the March Release, we expanded the Contract Percent Amount code list from 2 codes to 4 codes, which means if a Carrier sends all 4 codes, they need to send a second occurrence of the record. Here's the issue: 17

18 If a Carrier has 5 Value Amounts and 4 Percentage Amounts on a contract, they would need to send the first occurrence of the with all 5 value amounts filled and all 3 percent values filled. Then they would need to send a second occurrence of the with the first Contract Percent Value filled (for the 4th code). The problem is that the DTCC edits, currently, require Value Amount #1 to be filled on each If it is not filled, the contract will reject. Edit Change: On the subsequent occurrences of 13-02, either Contract Value #1 and/or Percentage Value #1 must be filled. It will no longer be mandatory to have Contract Value #1 on the subsequent occurrence of the record. 18

19 5. FTR Fund Transfers IPS00307 Upgrade Fund Transfers from ACORD version 2.16 to Required Schema Changes: 1. Remove the following elements as Extensions and add as regular elements: o RiderSubTypeCode in Rider o FundRestrictReason in Investment>SubAccount o ArrSubType in Arrangement 2. Add the following element: Party>Organization>DTCCAssociatedFirm - this will allow firms to use associated firm 3. Remove the 10 byte extension codes and switch to regular ACORD code for the following code lists: OLI_LU_RESTRICT: Restrict Code Old Code New Code Lookup Code Name 32 OLI_RESTRICT_FUNDXF ER Description Fund Transfer Restriction. OLI_LU_RESTRICTREASON: Restriction Reason Old Code New Code Lookup Code Name Description OLI_RESTRSN_FNE Product not eligible. 14 OLI_RESTRSN_CS Contract Status 15 OLI_RESTRSN_RT Restricted Trades 16 OLI_RESTRSN_NA Not Authorized. 19

20 OLI_RESTRSN_STT Short term trading 18 OLI_RESTRSN_YL Yearly Limits 19 OLI_RESTRSN_CE Conflicting Enrollments 20 OLI_RESTRSN_PENDTR N Conflicting Transactions OLI_LU_FUNDRESTRICT: Fund Restriction Code Old Code New Code Lookup Code Name Description OLI_FUNDRESTRICT_01 FUND Not Eligible OLI_FUNDRESTRICT_03 Internal Carrier Restriction OLI_FUNDRESTRICT_05 Short-tem Carrier Trading Limit Exceeded OLI_FUNDRESTRICT_06 Yearly Limits OLI_FUNDRESTRICT_FCTL Fund Company Trading Limit Exceeded OLI_FUNDRESTRICT_LTC Long-term Carrier Trading Limit Exceeded OLI_FUNDRESTRICT_ARR ANGEMENT Arrangement on Contract OLI_LU_ARRSUBTYPE: Arrangement Sub Type Old Code New Code Lookup Code Name Description OLI_ARRSUBTYPE_FULLREBALFT Full One-time Rebalance OLI_ARRSUBTYPE_FUNDBALFT Fund Balance Transfer 20

21 OLI_ARRSUBTYPE_PCTCVFT Percent of Contract Value Transfer OLI_ARRSUBTYPE_SPECIFIEDFT Specified Amount Transfer OLI_LU_RIDERSUBTYPE: Rider Sub Type Code New Cod e Lookup Code Name Description OLI_RIDERSUBTYPE_STDDB Standard Death Benefit OLI_RIDERSUBTYPE_AUTOSTEPUP Automatic Annual Step-up OLI_RIDERSUBTYPE_GLMWBSTEP Stepped Up GWB OLI_RIDERSUBTYPE_GMWBSTEP Stepped Up GWB for Life OLI_RIDERSUBTYPE_ASHRCDSC A-Share OLI_RIDERSUBTYPE_BSHRCDSC B-Share OLI_RIDERSUBTYPE_CSHRCDSC C-Share OLI_RIDERSUBTYPE_BONUSSHRCDS C Bonus OLI_RIDERSUBTYPE_FULL_ACCESS Full Access / No Surrender Charge RESULT_INFO_CODES: Result Info Code Old Code New Code Lookup Code Name ACORD Code Description 2103 RESULTINFO_CONFLICT Conflict In Pending Transactions 2111 RESULTINFO_MISSINGARR Missing Arrangement 2112 RESULTINFO_ARRNOTFOUND Requested Arrangement Not Found 21

22 RESULTINFO_SEC22C2REST SEC 22c2 fund restriction 2104 RESULTINFO_EXCESSIVE Excessive Trading Restriction 2105 RESULTINFO_CANCELOWNER Cancelled by Owner 2106 RESULTINFO_CANCELAGENT Cancelled by Agent 2107 RESULTINFO_CANCELINTPART Cancelled by Interested Party 2108 RESULTINFO_AGENTMISMATCH Agent does not match policy record (mismatch) 2109 RESULTINFO_DISTMISMATCH Distributor does not match policy record 2115 RESULTINFO_ Failure due to Arrangement ARRANGEPROBLEM Only 2117 RESULTINFO_FTPROBLEM Failure due to Fund Transfer Only 2110 RESULTINFO_FIXFUNDEXCEEDED Exceeds limit on fixed fund 2118 RESULTINFO_MVA MVA Warning 2122 RESULTINFO_SPECIALFUNDS Special Fund Warning 2119 RESULTINFO_PENDOVERIDE Pending Fund Transfer Override 2116 RESULTINFO_CONTRACTWARNIN Contract Status Change G Warming 2114 RESULTINFO_AGENTWARNING Agent Status Change Warning 2120 RESULTINFO_RIDERWARNING Rider Violation Warning 2121 RESULTINFO_SOFTCLOSE Market Condition Warning 4. Add the following codes (synch up with PPfA and POV): RiderType code list: 217 Interest Rate Options RiderSubType code list: 43 Reduced Minimum Purchase 37 Rate Protection Benefit 38 Waiver of Return of Premium 22

23 39 Return of Premium Guarantee 40 Interest Credit Option ArrSubType 30 Earnings Plus Principle DCA 5. Add <RestrictCode> and <RestrictionReason> elements to the Arrangement aggregate. *DTCC will add these elements as an extension since due to the fact that the fund transfer product is upgrading to version 2.20 of the ACORD standard. The two elements proposed are existing ACORD elements but not currently available in the Arrangement aggregate. DTCC will put in an Maintenance Request to ACORD to have this added to the model. However, it would be added to a newer version of the standard (2.21 or higher). 6. Fix Relation Role Code Discrepancy Currently, we use 142 for Servicing Agency in the RelationRole Code list. The correct ACORD code should be 154. DTCC will change this as part of the Sept 09 release. IPS00291 Fund Transfers Enhancements - Optional DTCC implemented as part of the March 2009 release but not communicated during that release. Added elements to handle Complex Allocation. See Complex Allocation standard usage on the Insurance Website for more information on how to implement. Add RestrictCode and RestrictionReason elements to the Arrangement aggregate. DTCC will add these elements as an extension since due to the fact that the fund transfer product is under version 2.16 of the ACORD standard. The two elements proposed are existing ACORD elements but not currently available in the Arrangement aggregate. DTCC will put in an Maintenance Request to ACORD to have this added to the model. However, it would be added to a newer version of the standard (2.21 or higher). Add <AssetClass> and <InvestType> to Subaccount. Allow for entire code list in OLI_LU_ASSETCLASS and OLI_LU_INVESTPROD Add a recursive <ArrDestination> element within ArrDestination aggregate. 23

24 6. IAT Attachments IPS IAT - CUSIP Validation / New Application Type Code Required Edit Changes: o Eliminate code validation on Attachment Type code list. Any code will be allowed to be passed in Attachment Type. o Validate CUSIP against DTCC cusip profile. DTCC does not currently validate CUSIPS when sent. o Change CUSIP element to required when Originating Transaction Type = 103 (New Business). For additional information on this enhancement release, contact your Account Relationship Manager. Craig Gurien Director, Product Management Insurance Services at DTCC 24