In order to support industry requests, the Insurance Processing Service (IPS) has scheduled an enhancement release for January 2002. IPS Enhancement Releases can include User Group Enhancement Requests, as well as maintenance items DTCC deems necessary to improve the overall operational performance of the system.

The enhancements in the January 2002 release will affect the following functionality’s: Licensing & Appointment (LNA) and Commissions (COM).

Schedule:
Test Region – January 14, 2002 starting at 3pm EST.
Production Region – January 25, 2002 starting at 3pm EST.

Participants may begin testing the changes via the test region starting January 14, 2002.

However, for the period of January 14, 2002 through and including January 24, 2002, participants must continue to use the old formats in the production system. The changes will be implemented into production on January 25, 2002. Any file sent prior to 3:00 P.M. EST on January 25 must be sent in the old format - any files sent in after 3:00 P.M. EST must be in the new format.

For a detailed look at all IPS enhancement information and draft record layouts, please go to our website, http://ips.dtcc.com. The information can be found in the Participant Member Section under User Group Information.

The enhancements to Licensing & Appointments (L&A) were requested and approved by the L&A Pilot Group. This group consists of representatives from the firms that implemented L&A. All changes were viewed as critical to support the ongoing business needs of the industry.

What’s Included:

See the following documents under IPS Draft Record Layouts at our website:

L&A List of Enhancements Approved - January 2002 Enhancement Release
L&A Record Layouts - January 2002 Enhancement Release
L&A Renewal Record Layouts - January 2002 Enhancement Release
L&A Data Dictionary - January 2002 Enhancement Release
L&A Transaction Grid for Record Usage - January 2002 Enhancement Release

The following are a summary of the changes:

1 – For the TA and TR transaction types, the edit validation was changed for Distribution Channel (item 6112) in the 53-01record from Not Used to Optional.

2 – For Renewal Record Layouts, a field called Original NSCC Control Number was added to the 63-01 record. The field will be 20 bytes in length and added at bytes 262 to 281, currently filler. The field will be optional.

3 – For the NA transaction type, the edit validation was changed to allow the use of the 53-04 record. The record was changed from Not Used to Optional.

4 – For the AI and AA transaction types, the edit validation was changed for NAIC number (item 6501) in the 53-11 record from Required to Optional.

5 – For L&A Record Layout, a field called PR Indicator was added to the 53-01 record. The field will be 1 byte in length and added at byte 186, currently filler. The field will require two codes, Y= Yes, N= No. The field will be optional for all transactions types.

The enhancements to Commissions (COM) were requested by members of the IPS user community. The enhancements were reviewed and approved by the IPS Working Group. The enhancements to COM involve code additions to the Commission Basis Reason Code List (item 2060). The codes were deemed necessary in order support the increasing number of life products processed through IPS.

In addition, one code (PBP) that had been removed during the Spring 2001 release is now being added back.

What’s Included:
See "IPS00059 – CBRC Codes for Life Products" under IPS Enhancements Approved for Future Release at our website.

The following codes are included in this enhancement request:
PY1 – Commission payment for target premium year 1
PY2 – Commission payment for target premium years 2-9
PYX– Commission payment for target premium years 10-16
CY1 – Chargeback for target premium year 1
CY2 – Chargeback for target premium years 2-9
CYX– Chargeback for target premium years 10-16
PE1 – Commission payment for excess premium year 1
PE2 – Commission payment for excess premium years 2-9
PEX – Commission payment for excess premium years 10-16
CE1 – Chargeback for excess premium year 1
CE2 – Chargeback for excess premium years 2-9
CEX – Chargeback for excess premium years 10-16
PIR – Commission payment for renewals (premium based)
CIR – Chargeback for renewals (premium based)
CIL – Chargeback due to lapsed policy
PMI – Commission payment for marketing allowance related to a specific contract
CMI – Chargeback for marketing allowance related to a specific contract
PTP – Commission payment for trails (premium based)

See "IPS00042 – Add COM basis reason code " under IPS Enhancements Approved for Future Release at our website.

The following code is included in this enhancement request:
PBP – Commission payment for Periodic Bonus

In order to support industry requests, the Insurance Processing Service (IPS) will add new test output cycles to Positions (POV), Commissions (COM) and Financial Activity Reporting (FAR) The enhancement request was made by a member of the IPS User Community, and reviewed and approved by the IPS Working Group.

Schedule:
The implementation of the new output cycles will start on January 4, 2002.

See "IPS00058 – Add additional test output cycles for POV, COM, FAR" under IPS Enhancements Approved for Future Release at our website.

The following output cycles were added:
POV (PFF/PVF) – 3:00 p.m. ET (Cycle 2)
COM (reject cycle only) - 12:00 p.m. ET (Cycle 8)
FAR – 3:00 p.m. ET (Cycle 2)

For additional information on this enhancement release, please call Craig Gurien at 212-855-5649, Lila Samim at 212-855-5740 or Randi Gordon at 212-855-5654.

Craig Gurien
Product Manager