Settlement Processing for Insurance (STL) leverages NSCC’s Money Settlement Service to report activity, including its Money Settlement Detail (MSD) data file and the net settlement obligation Money Settlement Summary (MSS) data file, to both parties of a transaction.
Settlement for Withdrawals and Settlement for Premiums
STL fully automates the movement of money in annuity withdrawals and the payment of life insurance premiums. With STL, funds withdrawn from annuities are issued directly back to the end-client’s brokerage account, enabling distributors to retain funds under their management. Supporting the processing of life insurance premiums, STL systematically transfers withdrawn funds from the brokerage account to the carrier.
Settlement for Replacements
STL brings DTCC’s carrier-to-distributor settlement capabilities to carrier-to-carrier replacement transactions (also known as 1035 Exchanges). This unique offering in the insurance marketplace connects insurance carriers, expediting the movement of monies between ceding (delivering) and receiving carriers upon surrender of an annuity contract in a completely standardized and automated environment.