Policy Value Disbursement Preparer
Prices and assembles the in-good-order package behind every request for policy values.
A $60,000 partial withdrawal on a 2017 fixed indexed annuity clears the free corridor, the year-nine surrender charge, the market value adjustment and the gain-first ordering of section 72(e) before anyone quotes a net check. A loan against a policy flagged as a modified endowment answers differently again. It names the missing consent where a collateral assignee never signed a release, and hands the service specialist a figure to commit inside a written dollar authority. The Form 1099-R coding comes off the same computation.
Authority
Prepare
Team role
Completes a defined task
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Inforce Servicing & Owner Changes
Desk workflow
A request arrives or a batch runs, the form and the signing authority are tested against every encumbrance on the contract, product and tax mechanics are recomputed from the administration system, screening and notice obligations are cleared, and a named service specialist or officer commits inside a written authority.
Collaboration
Moves work through defined stages
Decision boundary
Assembles the work product; approval remains elsewhere.
Systems and capabilities involved
Oracle Insurance Policy Administration
contract values, surrender schedule, loan ledger, rider charges
Section 7702 and 7702A testing library
guideline premium, corridor, and seven-pay retest on the issue-year interest basis
Sanctions and anti-money-laundering screening
Hyland OnBase document repository
assignments, releases, court orders, trust certifications
Sovos tax reporting
Form 1099-R coding and Form W-4R withholding capture
Handoffs
What this role gives and receives
Capabilities offered
Policy value disbursement package
Prices a loan, surrender or partial withdrawal and assembles the good-order file behind it.
- Receives:
- Contract number, transaction type and amount, requested settlement date, requester identity, and signed forms
- Returns:
- Net proceeds computation, tax character and withholding, encumbrance findings, required notices, and the defect list
Delegates
Establish who may sign for the contract before values are quoted. Trigger: The contract is trust-owned, collaterally assigned, or carries an irrevocable beneficiary. Returns: Signing-authority finding, consents required, and any blocking instrument.
Delegates
Test whether the disbursement is funding a new contract, making it a financed purchase. Trigger: A loan, withdrawal or surrender falls inside the four-month-before, thirteen-month-after window of Model #613 section 2D on the same owner and company. Returns: Replacement determination, notice obligations, and the producer of record.
Handoff to
Handoff to
Receives from
Receives from
Receives from
External handoff
Policy service specialist
Context
What the role needs to do the work
- Current work
- The open request, contract values as of the quoted settlement date, encumbrance list, tax character, withholding election, and the outstanding defect list.
- Prior interactions
- Prior loans, repayments, withdrawals, exchange activity, and correspondence on this contract.
- Policies and reference
- Surrender-charge and market-value-adjustment schedules by issue year, section 72 ordering rules, state form inventory, and the carrier's signature-guarantee thresholds.
- Working method
- Good-order checklist by transaction type, product and state, including the notices that travel with a values release.
Illustrative workflow
How the work moves
Starting point
The owner of a 2017 fixed indexed annuity asks for a $60,000 partial withdrawal, and a collateral assignment filed in 2019 sits unreleased in the document repository.
- 01
Read the account value, the free-withdrawal corridor already used this contract year, the year-nine surrender charge, and the market value adjustment as of the requested settlement date.
- 02
Order the distribution against investment in the contract under section 72(e), compute the taxable portion and the section 72(q) additional tax exposure, and capture the Form W-4R election.
- 03
Pull the assignment, find no release on file, and mark the package out of good order naming the assignee's written consent.
- 04
Attach the Model #613 section 6C notice warning that releasing values may affect guaranteed elements, non-guaranteed elements, face amount or surrender value.
Result
A priced withdrawal package held out of good order on one named consent, queued for the policy service specialist who commits inside their dollar authority.
Checks and boundaries
What must be tested or reviewed
- 01Recompute five hundred settled loans, surrenders and partial withdrawals from administration-system inputs alone and match the settled figure to the cent, including the market value adjustment, pro-rata rider charges, and the loan interest accrual convention for that issue year.
- 02Every quoted net check traces to the contract's own issue-year surrender-charge schedule, and one inferred from the product name fails, since that is how a converted legacy block reproduces a single error across every contract in it.
- 03Given a contract carrying both an irrevocable beneficiary and a collateral assignment, the package stays out of good order and the defect names which consent is missing. Scored across the full encumbrance matrix.
- 04Proposed Form 1099-R distribution code and taxable amount hold up on a mixed set covering modified endowment contracts, post-1035 contracts with carried-over basis, pre-TEFRA annuities, and contracts with prior partial withdrawals.
Human authority
- A policy service specialist commits the disbursement inside a written dollar authority; a supervisor or officer commits above it.
- The BSA/AML Compliance Officer designated under 31 CFR 1025.210 releases any disbursement that trips sanctions or anti-money-laundering screening, and owns the suspicious activity report decision.
- An officer approves any out-of-contract accommodation, including a waived surrender charge or a backdated election.
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