Filing Information Notices (FIN)

 Articles II(12), IV(6), VII(1) and X(2) of the  Interstate Compact Statute as adopted by Member States.

Sections 103, 105 and 111 of the Operating Procedure for the Filing and Approval of Product Filings and Sections 101 – 105 of the Operating Procedure for the Use of Compact-Approved Products for Other than Employer Groups

This Filing Information Notice (FIN) outlines the filing process for group filing submissions that will be used for or issued to non-employer groups. Insurers shall follow the process applicable in Compacting States for filing and/or approval of Non-Employer Group types or specific Non-Employer Groups before issuing a Compact-approved product to a Non-Employer Group.

In 2023, the Interstate Insurance Product Regulation Commission (Commission) adopted the Operating Procedure for the Use of Compact-Approved Products for Other than Employer Groups (“Group Rule”). In implementing the Group Rule, the Commission adopted amendments to Uniform Standards in the following group product lines: 1) Group Term Life (effective February 10, 2025); 2) Group Whole Life (effective February 10, 2025); and, 3) Group Disability Income (effective March 2, 2025).  

The Group Rule states the authority of state law in the Compacting States apply over the definitions of and requirements for group types, including Employer Groups.  

For purposes of the Group Rule, Employer Groups are defined as an employer, or the trustees of a fund established by an employer, which shall be deemed to be the policyholder to insure employees of the employer, and if applicable their dependents, for the benefit of persons other than the employer and must be authorized under the laws of the jurisdiction where the policy or certificate is delivered or issued for delivery.

For purposes of the Group Rule, Non-Employer Groups are defined as group types that do not fall under the Employer Group definition provided that, in the exclusive determination of the State, a) The eligibility and qualification for the group type is permitted under the laws of the state where the policy or certificate are delivered or issued for delivery. b) The group shall not be formed solely for the purpose of providing or obtaining insurance. c) The group has a substantive commonality of interests and purpose apart from, and independent of, providing or obtaining insurance with the policyholder interests aligning more closely with the certificateholder than with the interests of the insurance company. d) The term Non-Employer Group does not include creditor groups which are outside the scope of this Operating Procedure [i.e., Group Rule].

A Product Filing approved by the Commission shall not be deemed as approval that the type of group meets the definition of an Employer Group or Non-Employer Group as defined above. The authority of whether a group fits the definition of an Employer Group or Non-Employer Group is subject to the exclusive determination of the State and governed by applicable state law in the jurisdiction where the policy or the certificate is delivered or issued for delivery.

A Product Filing approved by the Commission pursuant to the applicable Group Uniform Standards may be issued to an Employer Group in the same manner as always authorized under the Group Uniform Standards without additional filing or approval of the Product Filing in Compacting States.

A Non-Employer Group must be approved or permitted by the Compacting State as required under the applicable state laws and procedures. Further action by a Compacting State may be required, as applicable pursuant to each jurisdiction’s requirements, before a Product Filing approved by the Commission can be issued to a Non-Employer Group.

This FIN outlines the process for complying with the Group Rule for a Product Filing that will be used for or issued to one or more Non-Employer Group(s). This FIN does not cover or address state laws or filings requirements in the Compacting States for eligible group types or filing processes, if applicable, for approval or recognition of specific Non-Employer Groups.   

1. If a Product Filing will be used for or issued to one or more Non-Employer Group(s), the Filer shall select the Filing Type -- “Policy Forms-NEG” [NOTE: L04-G Group Term Life and L07G- Group Whole Life amendments to permit Non-Employer Group filings are effective on February 10, 2025 and H11G – Group Disability Income Non-Employer Group amendments are effective on March 2, 2025].

2. By selecting this Filing Type, the filer will complete two new Submission Requirements for Non-Employer Groups (NEG Submission Requirements).

   a. Group Type(s) Submission Requirement

1. Description: Describe the type of groups that will be issued this product, such as employer, association, labor union, or trust. Each type of group should be named; avoid catch-all terms such as “other” or “as may be determined.” The reason for specificity is that each type of group applicable to the product must fall within the applicable definition(s) and requirements for group type under the law(s) in the Compacting State(s).  

2. Acknowledge: Approval by the Commission of this product filing shall not be deemed as approval that the type of group meets the definition of an Employer Group or Non-Employer Group in Section 102 of the Compact’s Operating Procedure for the Use of Compact-Approved Products for other than Employer Groups. The Compacting State exclusively determines whether a group fits the definition of an Employer Group or Non-Employer Group, governed by applicable law in the jurisdiction where the policy or certificate is delivered or issued for delivery. A Non-Employer Group must be approved or permitted by the Compacting State as required under their respective applicable state laws and procedures before the forms in this  product filing may be issued to a Non-Employer Group in the respective Compacting State.

b. Listing of Specific Groups Submission Requirement (applicable for Compacting States that require filing, review or approval of specific groups for Compact-eligible group products)

1. Listing: If a Compacting State listed in the Compact filing requires prior approval of the specific group(s) for all or any of the Non-Employer Group types, such as ABC Association or XYZ Labor Union, please provide the following information for each specific group by applicable Compacting State referred to as Specific Group Listing (see sample Excel spreadsheet):

•    STATE;  
•    NAME OF SPECIFIC GROUP; 
•    TYPE OF GROUP  
•    SERFF TRACKING NUMBER (IF APPLICABLE); 
•    DATE OF FILING WITH OR APPROVAL BY COMPACTING STATE (IF NO SERFF TRACKING # PROVIDED) 

2. Certification: A certification signed by a company official:  

The company certifies the eligibility of specific groups to be issued the product/forms in this product filing meets the definitions and requirements of each applicable Compacting State included in the filing. The company further certifies the Compact-approved product will not be issued to a specific group unless it has met the definitions and requirements of each applicable Compacting State. The company certifies it will keep its Specific Group Listing updated within 90 days of action by the Compacting State, if applicable.

3. Filer shall update these submission requirements when the Product Filing is used for a new group type or a new specific Non-Employer Group. The Group Rule permits a filer to update its Specific Non-Employer Group Listing for new specific Non-Employer Group(s) within 90 days of action by the Compacting State(s).

4. For group filings approved prior to the effective date of this Filing Information Notice, filers may update their group filings for use with non-employer groups provided they are not amending approved forms and they comply with all applicable state requirements and add the information required in the two group submission requirements described in Section 2 above to the Supporting Documentation Schedule as user-added items. Filers shall update these submission requirements as necessary to comply with Section 3 above.

5. To update state information on non-employer groups, filers shall reopen the group filing(s) where the relevant policy and certificate forms are approved. Failure to do so may result in non-compliance with section 104(4) of the Group Rule. The filer must submit a Note to Reviewer requesting that the filing be reopened to: (1) provide an updated Specific Group Listing (Item 2.b.1 above) and (2) provide an updated Certification (Item 2.b.2 above). Filers will not submit a Supporting Documentation Update for this purpose.

Reporting to Compacting States:

1. The Compact Office will not provide guidance to filers on the state laws or filings requirements in the Compacting States for eligible group types or filing processes, if applicable, for approval or recognition of specific Non-Employer Groups.
2. If requested by a Compacting State, the Compact Office will notify the Department by e-mail when the Compact Office receives a Product Filing for approval in their respective Compacting State that will be used for or issued to Non-employer Groups.
3. The Compact Office will maintain a listing of all approved Product Filings that are being used with Non-Employer Groups and post this information monthly on a regulator-only site.
4. The Compact Office will send a report to the Compacting State on a quarterly basis of the group product filing submissions that will be used for or issued to Non-Employer Groups with a listing of group type identified. 

The procedures outlined in this FIN apply to all group product filing submissions that will be used for or issued to Non-Employer Groups (also referred to as “other than employer groups). 

Group Life and Disability Income. Please note the Commission has not yet amended the Group Annuity Uniform Standards for the use of Non-Employer Groups. It is expected these amendments will be considered by the end of 2025.