News

The Insurance Compact is sharing insight regarding the payment of state filing fees. We hope this helps companies understand how the process works.

When a Compact product filing is submitted, the payment of state filing fees takes place via electronic funds transfer (EFT). The fees are automatically remitted to the states from the Compact’s bank account. If an EFT transmission fails or is blocked for any reason, the state fees are still remitted by the Compact. This is due to the programming code. If you have had a failed transmission, the fees requested are inclusive of the Compact fees PLUS the state fees because the Compact has borne these fees.

To avoid an EFT transmission error, please remember to provide your Finance Department advance warning when making a Compact filing and include the total of all fees to be paid. Also, look into the daily limits for your company and possibly increase those daily limits as the Compact payments go against those daily limits. These are the top two reasons why an EFT transmission fails.

If an EFT transmission fails, the Insurance Compact will ask you to remit the payment via wire transfer or check in a timely manner. Do not remit an additional payment to the states through SERFF as that does not make the Compact whole for the state fee payments already made on behalf of the company due as described above. Remember, all fees are due at the time of submission per the Product Filing Rule.

If you have any questions, please reach out to the Compact Office via comments@insurancecompact.org.