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1)
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Q:
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What
insurance policy reporting does Kentucky require
under the new law?
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A:
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The
new law specifies that as of January 1, 2006,
'Full Book of Business' (FBB) is to be reported
for Personal Line Policies. This law eliminates
reporting 'terminations' for Personal Line Policies.
Terminations, which include 'cancellations' and
'non-renewals', for Commercial Line policies was
not addressed in the new law and is still required.
Commercial Line Policies may be reported with
FBB. However, Commercial Line 'terminations' are
still required to be reported via a separate 'Cancellation'
report. The only 'change' is both submissions
are to be transmitted (no alternative media such
as tapes, discs or hardcopy reports) in the same
electronic format. A FBB submission is distinguished
from a Commercial 'Cancellation' by an indicator
in the Submission Header.
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| 2) |
Q: |
What
types of policy coverage is to be reported? |
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A: |
Kentucky
law specifies that 'Motorized' vehicles 'Registered'
in the Commonwealth must be covered by Liability
insurance. However, it is doubtful that all insurance
companies know which vehicles they insure in Kentucky
are defined in our system as 'Motorized' and are
'Registered'. Therefore, it is recommended that
'if in doubt' send it in; our Insurance system
will delete or ignore non-applicable policies.
For FBB, if the policy is active on the last day
of the month prior to the submission, include
it. 'Future' policies may be included, i.e., policies
whose effective date is in the month of the submission.
For Commercial Policy terminations, report all
terminations that occurred for the month being
reported. Vins are to be included on terminations
except for 'blanket policies' where they are not
recorded with the policy; sometimes referred to
as 'Unscheduled' or 'Commercial' Fleets.
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Q: |
Will
the company providing the data receive acknowledgement
from Kentucky and how do we handle errors returned
to us? |
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A: |
The
report will be processed overnight on the day
it was received. Upon processing the file an e-mail
acknowledging this will be sent to the technical
contacts provided to KYTC during company registration.
The e-mail will specify whether the file was successfully
processed or rejected and will include a Summary
Processing Report specifying the number of policies
and vehicles added, updated and deleted (cancelled)
from the master Insurance File for each company
(NAIC) included on the submission.
Additionally, a detailed 'Processing Report',
primarily errors, will be placed in a secure dataset
where the company can retrieve it using the same
software used for submitting the report. A complete
list of possible errors is located on our web
site www. . . . . . . . . . . . Except for errors
preventing file processing, all can be corrected
and included in the following month's report.
Note - the only practical way to determine whether
the file was truly intended for Kentucky is to
look at the number of policies submitted. If all
were added and a similar number were 'cancelled',
then more than likely the policies were not intended
for Kentucky.
Kentucky will not report 'Vin errors': all that
may be known from the submitted FBB or Commercial
termination is the submitted Vin does not match
a Vin on our system; it does not tell whether
the submitted Vin is erroneous or whether the
vehicle is currently registered in our system.
Furthermore, the system is not capable of researching
the database with a non-matching Vin to determine
the problem and there is a mechanism available
during the Registration process when the discrepancy
is accurately resolved.
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4)
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Q:
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Will VIN numbers
be validated by Polk or some other source?
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A:
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Yes,
we will be using Polk via our AVIS system. |
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5)
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Q:
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Is
there any ETA yet when final specs will be available
after the March 23rd 2005 meeting?
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A:
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There
is now a Draft
Insurance Guideline dated 8/15/05. The Guideline
is currently going through the regulatory process
to be approved as part of the regs. |
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6)
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Q:
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Can
the insurance companies implement earlier in the
year (ex. May 2005) rather than later knowing
that December 2005 would be the latest to meet
the 1/1/06 deadline?
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A:
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October
1, 2005 is Kentucky's target date to start accepting
test files. Once the actual data is tested for
validity and the submitting company is set up
for connectivity the state can begin receiving
production files. However, every company and service
provider must successfully complete a test run
prior to submitting a production file. |
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Q: |
Will
you be using an X12 format? |
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A: |
The
X12 format will not be used. The format to be
sent will be a proprietary file format. Please
see the Draft
Insurance Guideline for details. |
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Q: |
What
NAIC do you use for the F01 records and the F99
records.. Your F02 and
F98 are the envelopes for each NAIC. |
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A: |
The
purpose of the Submission Header and Submission
Trailer records (F01 and F99) is to accommodate
Service Providers, or Insurance Companies acting
as Service Providers, where more than one company
is included in the submission (report). The NAIC
on the F01 and F99 is that of the submitter. If
the submitter is an insurance company and only
reporting one company, the NAIC on the Submission
Header and Company Header will be the same.
The
NAIC of Service Providers (who are not insurance
companies) will be assigned by the system at the
time the service provider registers with the Transportation
Cabinet (KYTC). At that time, they will be informed
of their 'NAIC'. |
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Q: |
What
is the certification/registration process for
a company to complete before sending data? |
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A: |
Contact
the Transportation Cabinet at KYTCLiabilityInsuranceContacts@ky.gov.
They will e-mail a form for you to fill out regarding
contact information etc. You will then be logged
in as "In test". Once Kentucky can process your
submissions, essentially an "Acceptance Test",
you will be certified to submit production files.
If you will be representing additional companies
there is a section on the form where the NAIC's
of those companies are to be listed. |
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Q: |
What
are the error messages that could potentially
be sent back to the company providing the data?
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A: |
Insurance
Error Report - Word
or Acrobat
Reader |
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Q: |
1.
Will "effective" and "expiration" dates be the
same for each policy, insured, and vehicle record
segments on a vehicle?
2. Would Kentucky
ever want a policy effective date and a different
vehicle or insured effective date for that policy? |
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A: |
1.
Yes. 2. No. For Kentucky's purposes we just need
to know the Effective and Expiration dates of
the policy. As vehicles are added or deleted from
the policy their VIN's will be included or not
included on the monthly submission and consequently
added and deleted from Kentucky's data. |
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Q: |
Does
the Header and Trailer record count as part of
the "number of records" field? |
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A: |
The
field F98-NUM-RECORDS will count the trailer for
the NAIC totals in the count. The field F99-NUM-RECORDS
will include the header and trailer for the Submission
Totals in the count.
Consider
the following example:
F01: F02: F03: F04: F05: F05: F05: F98: F02: F03:
F04: F05: F03: F04: F05: F05: F98: F99
The first F98-NUM-RECORDS would be 7. The second
F98-NUM-RECORDS would be 9. The F99-NUM-RECORDS
would be 18. |
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Q: |
What
is the expected reporting schedule for data? |
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A: |
As
of January 1, 2006, "Full Book of Business" reporting
is required for Personal Line policies and is
required to be submitted between the 1st and the
15th of each month. Commercial Line policies are
optional on "Full Book of Business" reporting.
Terminations (i.e., cancellations and non-renewals)
are required for Commercial Lines policies and
are due within one (1) week; this is no change
from the current requirement and will remain in
force. |
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Q: |
What
connectivity method will be used? |
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A: |
Starting
in August 2005 companies may submit via FTP or
FTPS. A system upgrade is scheduled later in August
that will process SFTP. Eventually, for production
data, the insurance company will be able to choose
FTP, FTPS, or SFTP. |
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Q: |
What
is the match criteria on the insurance transactions? |
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A: |
The
only mass criteria used is the vin number. As
each citizen comes to the county clerk office
'first time' or to renew their vehicle registration,
the insurance file will be accessed using the
VIN from our Titling and Registration System to
verify the vehicle is insured. If the VIN cannot
be located in the insurance file the citizen will
be required to show the proof of insurance card.
The company NAIC and policy number from the card
will then be entered and another access made against
the insurance file. All VINS associated with that
policy number are retrieved and the county clerk
can manually determine if the vehicle is insured
based on the VIN's found. If the county clerk
determines this is the same vehicle the computer
application will add the Titling and Registration
System's VIN to the policy as an "alias". Thereafter
the citizen will not have to show the proof of
insurance card on that VIN with that policy. |
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Q: |
Does
Kentucky proactively send out insurance verifications? |
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A: |
No. |
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Q: |
What
is your non-compliance process? / What is the
penalty if I don't report full book of business? |
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A: |
After
the 15th of each month the system will be checked
to see if any companies have failed to report
for that month. A list of companies that have
not reported will be forwarded to the Department
of Insurance for follow-up enforcement. |
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Q: |
What
is the Kentucky Service Provider Code (PNNNN)?
Will the 5 digit NAIC code be OK for this field? |
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A: |
The
Kentucky Service Provider Code (PNNNN) is for
third parties that provide the reporting service
for some insurance companies. An insurance company
may also provide such services for other companies.
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Q: |
How
do I find out what my three digit KOI license number
is? |
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A: |
You
need to create a request on your company letterhead
asking for the KOI number. This request should
be faxed attention PNC to (502) 564-2728 |
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Q:
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How
do I report cancellations on Commercial vehicles
if I don't have VINS? |
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A:
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Please
read the KRS that refers to Commercial vehicle cancellations,
http://www.lrc.ky.gov/krs/304-39/085.pdf.
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Q:
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What
if my company has more than one VIN on a policy?
How does the file look in that case? |
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A:
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Consider
the following example:
F01:
F02: F03: F04: F05: F05: F98: F99
This example shows one submission header (F01),
one NAIC header (F02), one policy info (F03),
one policy holder info (F04), and 2 vehicles
(F05, F05). This is the correct format for reporting
when you have more than one vehicle on a policy.
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Q:
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What
is the penalty if I don't report Full Book of Business?
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A:
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This
information will be forwarded to the Kentucky
Office of Insurance for appropriate administrative
action. |
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Q:
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If
I am a provider and send in a data file for one
insurance company and then later the same day
I want to send another data file for another company
how will you handle that? |
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A:
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As
you send in the data be sure to use the append
command so your file will always add on to the
end of a file that is already sitting in your
folder. Kentucky will process the files once a
day so if you send more than one file in a days
time you will cover it up unless you append the
data. Along those same lines, if you find you
have sent an incorrect file you can re-send the
correct one and it will cover the first file as
long as this is all done within the same day.
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| 24) |
Q: |
What
type of data is allowed in the submission files?
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A: |
We
can only accept data in submission files in UPPER
CASE only, lower case data cannot be accepted.
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| 25) |
Q: |
What
are the file naming conventions for sending and
retrieving files from Kentucky? |
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A: |
File
naming conventions. |
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