This bulletin is intended to provide information and guidance for companies submitting limited launch CARFRA filings intended for use in Texas.
The information and guidance outlined in this bulletin are interim only. Updates may be provided in the future. The information and guidance are not intended to replace the filing requirements of 28 Texas Administrative Code (TAC), Chapter 3, Subchapter A. Companies may either elect to file policy forms via CARFRA or file directly with Texas under the requirements of Subchapter A. Neither the existence of nor compliance with the interim information and guidance confers any property or other rights on licensed entities, other than the option to file forms in accordance with the interim CARFRA information and guidance, until they are superceded or terminated.
CARFRA is an initiative of the National Association of Insurance Commissioners (NAIC) Speed to Market working group. Regulators, industry and consumer groups have participated in the process of developing standards to be used in CARFRA form review. Along with Texas, nine other states are participating in this limited launch. They are: Alabama, Arkansas, Indiana, Maine, Michigan, New York, Ohio, Oregon and Pennsylvania. CARFRA provides the option for a one-stop review process, whereby a company can file a policy form intended for use in some or all these 10 states, with a multi-state coordinated review of a single filing. To qualify for the CARFRA review process, companies are required to meet the national standards outlined for the products as well as the applicable state deviation(s).
Products
The products accepted for the CARFRA limited launch are:
- Individual Flexible Premium Deferred Annuity Contracts (Fixed Account) (With Bonus, No Indexing, Not Modified Guaranteed);
- Individual Term Life Policies; and
- Individual and Group Medicare Supplement Policies (Excludes Medicare Select Policies and Medicare Supplement and Medicare Select Rate Filings).
Advertising, Applications for Coverage, Medicare Select policy forms, and Medicare Supplement and Medicare Select rate filings are not being accepted for CARFRA review at this time. Such filings must be submitted as outlined in 28 TAC, Chapter 21, Subchapter B, and 28 TAC Chapter 3, Subchapter A.
Filing Procedures and Fees
To take advantage of the CARFRA one-filing system, all CARFRA filings must be remitted via the NAIC´s System for Electronic Rate and Form Filings (SERFF). Companies may access information regarding SERFF at www.serffcentral.com.
Individual Flexible Premium Deferred Annuity contracts, Individual Term Life policies, and Medicare Supplement policies issued to single employers, multiple employer arrangements, and labor unions are exempt from review under 28 TAC, Chapter 3, Subchapter Z. However, under certain circumstances outlined in 28 TAC, Chapter 3, Subchapter Z, these contracts and policies are not exempt. The filing fee will depend on whether the forms are submitted for review or as exempt from review. Companies should review 28 TAC, Chapter 3, Subchapter Z to determine on how the forms should be filed through the CARFRA limited launch for use in Texas.
Fees
The appropriate fees for filing policy forms are outlined in Article 3.42 (e)(1) and (2), Texas Insurance Code, as follows:
Each policy form submitted for review $100.00
Each policy form submitted as exempt from review $ 50.00
Companies submitting CARFRA filings for use in Texas shall remit the appropriate fees to the Texas Department of Insurance (TDI) at the time the form is filed.
Product Checklist
The approved products checklist and Texas deviations are available at CARFRA´s Web site at www.carfra.org. Companies submitting CARFRA filings are required to follow the requirements outlined to get a positive CARFRA recommendation.
Questions regarding Texas participation in CARFRA can be directed to Ana M. Smith-Daley or the Life/Health Division of TDI at 512-322-3401 or by e-mail at LifeHealth@tdi.texas.gov.
Ana Smith-Daley
Deputy Commissioner
Life and Health Division