SERFF pricing and policy changes were adopted with the approval of the NAIC's 2018 Budget on December 4, 2017. These changes, which will be effective January 4, 2018, were designed to streamline the pricing structure in order to ensure equity across prepaid tiers; alleviate manual effort involved with the prepaid block process; and significantly reduce the NAIC's financial liability. An emailed notification was sent to SERFF customers on December 5, 2017 to notify them of these impending changes.
The Pay-As-You-Go rate for transactions within the system has been reduced from $15 to $13.50.
The prepaid-block tiers have been streamlined to three with pricing as follows:
|Block Size/ Number of Transactions||Per Transaction Price||Transaction Block Fee|
Prepaid blocks will expire 24 months after purchase, with any unused transactions to be recognized as NAIC revenue following expiration. In the new pricing structure, there is no longer a volume discount on Pay-As-You-Go transactions, so your company may want to take advantage of prepaid blocks. The SERFF marketing team can assist you with the block purchase.
To facilitate the transition to the new structure, the policy regarding block refunds has changed. The NAIC will offer refunds of the unused balance for blocks that were purchased based on the 2017 and prior pricing structure.
When and What Will Happen
Blocks purchased on the 2017 and prior pricing structure will be closed out at midnight on March 1, 2018.
This means any unused transactions remaining on your 2017 and prior blocks will be set to zero. If your company purchased a new block on the new pricing structure, you’ll start using that block for any filings submitted on March 1 and going forward. If your company did not purchase a new block, you’ll automatically switch to the Pay As You Go pricing of $13.50 per transaction.
What Instances have Blocks to be Refunded
If you have multiple SERFF instances and/or you’re not sure which instance will receive a refund, you can look under the Billing tab when logged into SERFF. Any block with a Product ID starting with SER-B or SER-S was purchased on the old pricing structure and would be refunded unless opted out. You can also view how much money remains on your block and get an approximate refund total. Since you can continue to use your block in February, the total may change based on filings submitted.
Refunds on unused transactions will begin to be processed in March. All refunds will be mailed by April 30, 2018. We want to ensure we send the refund check to the correct address. Please complete our SERFF Refund Processing Form by March 1 found here: https://www.surveymonkey.com/r/5WKZ8SX. You’ll be able to enter in what company the check should be made payable to and address information. If you do not complete this form, we will send the check to the billing address we have on file. However, we encourage all companies to complete the form to ensure the refund makes it to you in a timely manner.
Pay As You Go Pricing Billing Information
If your company is switching to Pay As You Go pricing, it is billed in arrears and is all electronic. Your company billing contact will receive an emailed notification at the beginning of the month when the prior month’s invoice is available to view and/or pay in the NAIC Account Manager. You can pay by mailing in a check, or by credit card or ACH Credit in Account Manager.
Reminder: To prevent your company from switching to the Pay-As-You-Go rate on March 1, be sure to request a new block order form ASAP and send in your check to be received prior to the block close out.
Please note the deadline for submitting the refund opt-out form has passed. If your company opted out of the refund on block(s), the person who submitted the request received a confirmation email on February 5, 2018.
Further details or clarification regarding the changes will be posted here as they are available. However, if you find that you have questions regarding the new pricing or policies, you are welcome to contact the SERFF Marketing team at firstname.lastname@example.org or 816-783-8787.