2001 FINANCIAL DATA INCENTIVE
PROGRAM
2001
Financial
Call Package | 2001 Premium Call | FAQ
2001 Financial Data
Reporting Application (FDRA)
This program recognizes the critical importance
of the DCRB receiving quality financial data on time so that it can be used in support
of filings made with the Delaware Insurance Department. In addition, this program is
intended to more equitably allocate costs to the DCRB associated with late or inaccurate
data submission. Following is a description of this program.
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2001
FDIP Release of February 14,
2002
Frequently Asked
Questions
| Q: |
WHAT IS THE FDIP? |
| A: |
FDIP stands for the Financial Data Incentive
Program. The program recognizes the critical importance to the DCRB of receiving quality
financial data on time so that it can be used in support of filings made with the
Insurance Departments. In addition, this program is intended to more equitably allocate
costs to the DCRB associated with late or inaccurate data submission. You may refer to
the specific details of the FDIP program included within the financial call package. |
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| Q: |
HOW ARE ASSESSMENTS
LEVIED? |
| A: |
Under the program, assessments for lateness
will be levied on carriers for financial calls that are not received by the
DCRB with a
postmarked date prior to or on the required due date. In addition, any resubmission of
data after the due date, whether requested or submitted on a voluntary basis, will carry
an assessment charge. Assessments for the quality of data submitted will be based on
various levels of editing, as described in the FDIP. Examples of edit descriptions can be
found in the FDIP program included within the financial call package. |
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| Q: |
HOW SOON DO FINES
START ACCRUING AFTER WE RECEIVE A CRITICISM LETTER? |
| A: |
Once the carrier has received notification of
the failed Basic Edits, each subsequent day will generate charges according to the
Assessment Schedule until such time as the carrier submits accurate revisions to its data
Calls. If a carrier has received notification of failed Actuarial Edits only, the
DCRB
allows for a ten (10) business day period for the carrier to respond before being
subjected to the Assessment Schedule. If the carrier satisfactorily responds within that
time frame without the necessity for resubmissions, no actuarial edit assessment will be
imposed. Please refer to the FDIP for complete detail. |
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| Q: |
WE SAID "WE WERE
STILL WORKING ON THE FAILED EDIT." WHY WERE WE FINED? |
| A: |
The carrier is responsible for working to
provide explanations and/or corrections for failed edits and/or inquiries. It is the
carrier’s responsibility to be aware that assessment days and fines are accruing and
that explanations and/or resubmissions are required as soon as possible. Assessments will
continue to accrue until all items in a criticism letter have been addressed. |
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| Q: |
IS THERE A MAXIMUM
FDIP ASSESSMENT? |
| A: |
Yes. All assessments in total are subject to a
maximum of 50% of the second prior Calendar Year Direct Net Written Premium per
the Exhibit of Premiums and Losses
(Statutory Page 14) - page 24
of
the Annual Statement. In the event that application of the Assessment Schedule as set
forth herein produces indicated assessments in excess of such amount, the maximum
assessment will apply. A further cap is imposed
in the sense that assessments no longer accrue after the 55-day maximum shown on the
Assessment Schedule. Carriers are still expected, however, to address failed edits and
criticism letters after the maximum assessment is reached. |
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| Q: |
SOMETHING
DOESN’T SEEM CORRECT ON MY ASSESSMENT INVOICE. WHAT DO I DO? |
| A: |
Carriers will have 31 days after receipt of the
DCRB notice of assessments to appeal the propriety of any assessments. Any appeal of
assessment must be made in writing and must set forth all factors which the carrier wishes
to be considered in review of the appeal. Refer to the FDIP for additional detail. |
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