Enhancement Release 3.0 - Shareholder Bypass

ID

Fix

What is the impact on me?

Description of Change

Tips for Testing

SD-3372

Application of shareholder bypass

What should I do as MGA, if I have existing legacy contracts with a company, but I do not know its shareholder information?

If you add a company to your In Trust, but do not enter any shareholder information before inviting them, the company will be placed in bypass status:

·       This is a temporary framework that will allow the company to embark in good health (green) status.

·       The company will be required to list 100% of its owners upon integration, but shareholders will not be required to register until the bypass status is removed.

A company will not be in bypass status if:

·       They do not have a contract at the time of the invitation

·       They have contracts, but the shareholder information has been populated in InTrust

Note: If a company in bypass status is already integrated and is invited by another MGA:

·       Their bypass status will not be affected

·       The shareholder information entered by the second MGA will not be imported because the company has already defined its shareholders during integration.

MGAs can test this functionality by inviting

Non-Bypass Corporations:

·       Corporation with no contracts or owners defined

·       Corporation with no contracts, but with owners defined

·       Corporation with contracts and owners defined

Bypass Corporations:

·       Corporation with contracts and owners are not defined

A corporation in bypass status will appear in good (green) health and will have a value of ‘Yes’ in the ‘Shareholder Bypass’ field on the corporation header

SD-2269

Removing Shareholder Bypass

How do I know when shareholder bypass will be removed from a corporation?

A corporation with shareholder bypass will remain in bypass status until they:

·       Make an edit to their shareholder information

o   Bypass status will be removed when edits are made to:

§  Ownership Percentage

§  Any new shareholder is added

§  Any shareholder is removed

o   Note: Edits made to First Name, Last Name, Title, Minor Flag and Email Address fields will not remove bypass status

·       Submit a contract request

o   If a contract is submitted where the corporation is the bottom party, bypass will be removed

o   This includes related contracts and transfers

o   Bypass will not be removed if:

§  Corporation is not the bottom party

§  Contract request is denied

This can be tested by on-boarding a bypass corporation per the steps above and:

·       Making an edit to shareholder %

·       Adding a new shareholder

·       Removing an existing shareholder

·       Submitting and approving a contract request where the corporation is the bottom party

The health of a corporation in bypass status will change to red health and the value will change to ‘No’ in the ‘Shareholder Bypass’ field on the corporation header

SD-3376

Identify and Search for Corporations with Shareholder Bypass

As a Carrier or MGA, how do I locate corporations in Shareholder Bypass status? 

·       You can search for corporations in bypass status by using the new ‘Shareholder Bypass’ field on the Search>Advisor screen

o   Corporations in bypass status will be returned when you select ‘Yes’ as your filter value

o   If you select ‘No’, corporations which never had or are no longer in bypass status will be returned

o   You can write triggers using the new filter

·       When you are looking at a corporation profile you can tell their status by refencing the ‘Shareholder Bypass’ field in the corporation header

This can be tested by on-boarding a corporation in:

·       Bypass status

·       Non-bypass status

·       Removing bypass status

·       Adding and subscribing to a trigger based on the value in this field

The value in the ‘Shareholder Bypass’ field will update accordingly, and the filter will return the list of corporations matching the filter value defined

SD-3374

Shareholder Bypass and Health

How is the health of a corporation in bypass status different than a non-bypass corporation?

Health of a non-bypass and bypass corporation will be handled differently in the system

Corporations in bypass status:

·       Corporations in bypass status will be imported in good (green) health

·       They will not be required to onboard their shareholders until this status is removed

·       Once bypass status has been removed, the corporation will automatically go into bad (red health)

·       The corporation will be unable to contract until all their shareholders have onboarded

Corporations without bypass status:

·       Corporations which are not invited in bypass status will have their health immediately effected as soon as they complete on-boarding

·       They will be required to onboard their shareholders right away to be able to contract in the system

Notification of bad health:

·       Corporations who go into bad (red) health after initial onboarding will be notified by email that there is an issue with their shareholders and they will receive an alert on the dashboard and on the owner screen

·       Once all shareholders have onboarded, the corporation will return to good (green) health

·       The corporation will be notified via email and the dashboard and owners screen will be updated when they return to good health

This can be tested by onboarding a corporation in bypass status and validating health is green

·       Making a change to ownership %, adding or removing a shareholder and confirm health changes to red

·       Submitting and approving a contract request where corporation is the bottom party and confirm health changes to red

·       On-boarding all necessary shareholders and confirming that health changes back to green

SD-3378

Invite and Link Shareholders Automatically for Corps

As an MGA how can I invite shareholders going forward?

The system will automatically link existing shareholder profiles to the corporation and send invitation emails to shareholders if they do not already have a profile:

·       The system will automatically search by email address and link existing shareholders to the corporation (regardless of whether the shareholder was defined from InTrust by the MGA or by the corporation during or after on-boarding)

·       If a corresponding profile is not found, the system will automatically generate a shareholder invitation to the email address on file

·       When the shareholder acts on that invitation and completes their profile, that advisor profile will be automatically linked to the corporation

·       Anytime a shareholder is added, deleted or ownership % is updated, the system will complete this process for a non-bypass corporation

·       This process eliminates the need for MGAs to manually invite shareholders and for corporations to enter the shareholders token

Corporation invited in non-bypass status:

·       Shareholder identified during on-boarding will be linked and invited as soon as the corporation clicks the ‘Finish’ button during on-boarding

·       Any edits to the shareholder section defined above, will repeat this process for the current shareholders

Corporations invited in bypass status:

·       Shareholders identified during on-boarding will not be automatically linked or invited by the process above

·       The corporation will still be required to define 100% ownership, but they will not be required to onboard their shareholder at this time

·       The shareholder list will be an ‘static’ list until bypass status is removed

·       The system will perform the process above if:

o   The corporation makes an edit to shareholder %, adds or removes a shareholder

o   It is the first time they submit a contract request for which they are the bottom party, and it is accepted

·       Once bypass is removed, any edits to the shareholder section defined above, will repeat this process for the current shareholders

This can be tested by onboarding as a non-bypass corporation and confirming:

·       Existing advisors are automatically linked to the corporation

·       Shareholders without existing profiles are invited and when they complete onboarding, they are linked to the corporation

·       This process happens when the ‘Finish’ button is clicked during onboarding or afterwards when changes are made to ownership % or a shareholder is added or deleted

This can be tested for corporation in bypass status by confirming:

·       Existing profiles are not linked, and invitation are not sent out during on-boarding

o   When bypass status is removed existing advisors are automatically linked to the corporation

o   Shareholders without existing profiles are invited and when they complete onboarding, they are linked to the corporation

SD-3378

Resending Shareholder Invitations

As an MGA how can I help the corporation if their shareholder can’t find their invitation?

Corporations and MGAs have access to resend shareholder invitations to shareholders

·       Invitations can be resent until the shareholder completes onboarding

·       If the email address is incorrect, the corporation can edit the email and resend the invitation

Note: invitations can only be resent for a bypass corporation once the bypass status has been removed

SD-3375

Shareholder Screening

As a Carrier or MGA, how do I know bypass shareholder will receiving credit and criminal checks?

Shareholders will receive credit and criminal background screening (when necessary) as their profiles are linked to the corporation

·       The system will monitor each time a shareholder is linked to a corporation, to assesses whether the shareholder needs to receive credit and criminal screening

Credit Screening:

·       If the shareholder already has an existing profile which already has a pending or completed credit check, an additional check will not be performed

·       If the shareholder onboards under a new profile or their existing profile was not previously screened, the system will perform either a real-time check or add the shareholder to the batch file:

Real-Time Checks:

·       If the shareholder has a profile at the time the contract is ‘sent backwards’ a real-time check will be performed

Batch File:

·       If the shareholder has been invited, but has not yet completed their profile when the contract is ‘sent backwards’, they will be added to the batch file when they complete onboarding

·       If the shareholder is added well after the contract has been ‘sent backwards’, they will be included in the batch file when they complete onboarding

Criminal Background Checks

·       During contracting, the system will check to see if relationship is net-new between the top party and the corporation at the time when the contract is ‘sent backwards’

·       If the shareholder already has a profile, the system will check to see if a background check has already been completed within the last 60 days. If the last background check was more than 60 days old, they will receive another one

·       If the shareholder already has a pending or successful background check within 60 days, they will not receive another

·       If the shareholder has been invited, but not yet completed their profile or if the shareholder is added well after the contract has been sent backwards, they will receive a background check as soon as they complete on-boarding

This can be partially tested by on-boarding a corporation and:

·       Validating existing shareholders have a ‘Pending’ credit check

·       Invited shareholders will have a ‘Pending’ check after completing on-boarding

When corporation enters a net new relationship:

·       Existing shareholder have a ‘Pending background check’

·       Invited shareholders have a ‘Pending’ check after completing onboarding

SD-3380

Updates to Profile Wizard and Owners Screen

How do these changes affect the onboarding screens?

There will be some updates made to the Owners screen

·       The corporation profile wizard and Owners screen will be updated to remove:

o   The token field as it is no longer required

o   Banner which indicates: “The APEXA registration link is provided to the advisor via email upon being invited to APEXA. If they have not received the email, please advise the advisor to reach out to their contracting parties to send an invite”

o   Banner which indicates: “Shareholders who own more than 20% of the corporation are required to have an APEXA account. If a shareholder is already onboarded, they'll need to provide their "primary token" to be entered here. If a shareholder does not have an APEXA account, contact your MGA or AGA for assistance”

o   Banner which indicates: “The APEXA registration link is provided to the advisor via email upon being invited to APEXA. If they have not received the email, please advise the advisor to reach out to their contracting parties to send an invite”

·       The screen will be updated to add a banner to indicate “To re-send an invitation to one of your owners, select the (email) symbol”

This can be tested by completing the onboarding wizard and making edits during and after on-boarding and confirming:

·       Removed banners no longer appear

·       New banner has been added

SD-3381

Update Billing Report for Shareholder Override

As a Carrier and MGA how will my billing report be updated for bypass corporations?

The Billing report currently charges the partner for each advisor/shareholder profile with 20% or more ownership they have access to view

·       The report will be updated to bill the partner for the corporation in bypass status for the month in which they complete on-boarding

·       The billing anniversary date for the corporation will be based on when the corporate first entered into an active, downgraded or vested contract

·       Once bypass status is removed, the partner will be billed for each shareholder with 20% or more ownership, as they complete on-boarding or are linked to existing profiles

·       The corporation anniversary date will be replaced by anniversary date for each individual profile

·       The partner will not be charged again for the bypass corporation

This item cannot be tested by partner organizations. APEXA will be testing this item