SERFF objections: how they work and how to answer them

What an objection letter contains

In SERFF, a state's objections arrive as an Objection Letter on the filing's Correspondence tab. A typical letter:

• lists numbered objections, each tied where relevant to a specific schedule item such as a form, a rate or rule page, or a supporting document;
• explains what is deficient or what additional information is needed, often citing the statute, regulation or bulletin involved;
• often states when a response is expected.

Some states put their issues in a comments field or an attached document instead of individual objections. SERFF handles that case too; the filer still responds through a Response Letter. States can also raise questions in a Note to Filer, which is less formal than an Objection Letter.

How responses work in SERFF

SERFF separates three kinds of filer correspondence.

The SERFF help pages describe the response process in three steps: view the state's objections, make the schedule item revisions or additions, then build and submit the letter.

• Revise the schedules first. Changes are made directly on the Form, Rate/Rule or Supporting Documentation schedules in Revise mode, entered with the Change Schedule Items button. Revising replaces an item already submitted; adding supplies something that was not in the original submission.
• Start the Response Letter. The Respond button next to the Objection Letter is not available while the filing is closed or still in Revise mode.
• Match changes to objections. SERFF tries to match schedule changes to the objections they address. The filer can remove mismatches or add missing items, and one change can answer more than one objection.
• Comment on every objection. A comment is required for each objection, even when no schedule item changes.
• Submit. The submit button appears only when required fields are complete.

There can be only one Response Letter for each Objection Letter, so the response has to be complete when it is sent. When every Objection Letter on a filing has a response, the filing's status changes to Pending State Action. SERFF advises against putting approvable material in a Note to Reviewer unless the state specifically asks for it; anything the state is approving belongs on the schedules through a Response Letter or an Amendment.

States layer their own instructions on top of SERFF's, such as file format rules for attachments or how amended exhibits should be labeled. Check the state's filing instructions before responding.

Responding to a SERFF objection letter, step by step

The SERFF help pages add detail that matters once you are building the response.

Making the schedule changes. The Change Schedule Items button puts the filing into Revise mode, where only the Form, Rate/Rule and Supporting Documentation tabs can be changed. SERFF's guidance is to make every change before creating the Response Letter.

• Revising an item creates a copy to edit. When an attachment changes, remove the old version and add the new one; on an item with several attachments, replace only those that changed.
• Adding uses the Add Schedule Item(s) button at the bottom of the schedule tab (Add Supporting Document on the Supporting Documentation tab). Upload the attachments that belong with the new item.
• Rate data has limits. On the Rate/Rule schedule only the schedule item data can be added or revised. The help pages say the rate data itself is not revisable and cannot be added if it was left off the original submission, so check it before the first submission.
• Drafts can be undone; submissions cannot. While a change is still a draft, Undo Draft discards it. Once the response is submitted, the changes are a permanent part of the filing. Use Apply to save as you go and Save to leave Revise mode.

Building the letter. The Respond button sits next to the Objection Letter on the Correspondence tab. The Response Letter lists the objections in order, each with the schedule changes SERFF matched to it.

• Remove takes a change off an objection it does not belong to. It does not delete the draft change from the filing or from other objections.
• Add Schedule Item(s) inside the letter attaches a draft change SERFF did not match. One change can be attached to several objections.
• New changes need Revise mode. Schedule items cannot be added or revised within the Response Letter itself. Save the letter, return to Revise mode, make the change, then come back and attach it.
• Every objection needs a comment, even where nothing changed, and the Submit button appears only when all required fields are complete.

An objection icon on a schedule item stays until the Response Letter is submitted.

Letters without individual objections. When a state types its issues as comments or attaches a document instead of numbered objections, the filing shows a single Objection icon that points to the letter on the Correspondence tab. Make the schedule changes as usual, then start the response with Respond: SERFF pulls in all the schedule changes in order. Remove any that should not go with this response, complete the Comments field, save, and submit.

Amendments and notes. An Amendment needs a comment and at least one schedule item revision or addition. If there is nothing to revise or add, SERFF's guidance is to send a Note to Reviewer instead.

Timing

Response deadlines are set by the state, and they vary by state, line, filing type and sometimes by the individual letter. Read the due date on each letter rather than assuming a standard period. If more time is needed, ask before the deadline through the channel the state prefers.

Deadlines interact with each state's review clock. Under a prior approval law with a deemer provision, for example, how a pending objection affects the deemer period depends on that state's statute and practice. Do not assume the clock is running, paused or reset without checking. See rate regulation systems for how filing laws differ.

Common objection themes

Many of these are covered in more detail in the actuarial memorandum, rate filing exhibits and form filings.

Writing a strong response

• Answer the question asked. Restate or quote each objection and respond to it directly before adding context.
• Respond to every objection. SERFF requires a comment on each one; a partial response usually produces a second letter.
• Show the support, not just the conclusion. Point to the specific exhibit, page and line, and provide a new or revised exhibit where the original did not show the work.
• Keep the package consistent. If a response changes a number, update every place it appears: the memorandum, the exhibits, the rate pages and the SERFF rate summary.
• Revise rather than explain around a defect. If a form provision conflicts with statute, change the form; explanation alone rarely closes a compliance objection.
• Label changes clearly. Mark revised exhibits and pages as revised and note what changed.
• Be courteous and prompt. The handbook stresses that much review time is lost waiting for correspondence and that both sides benefit from exchanging information with courtesy, promptness and clarity.
• Handle multiple letters deliberately. SERFF's guidance is to check whether two open letters cite the same schedule items; if not, answer the first fully before starting the second, and if they overlap, make the change once and refer to it in the second response.

Outcomes

A filing under objection usually ends in one of a few ways:

• Approval or acceptance after the responses satisfy the reviewer.
• Disapproval when the reviewer concludes the filing does not meet the law. New Hampshire's Ins 5000, for example, provides that form filings disapproved under its statute may not be resubmitted until the previously identified objections are corrected, and that a corrected resubmission must cite the previous SERFF tracking number.
• Withdrawal by the filer, often to rework the filing and refile it.
• Rejection or closure for incompleteness. The handbook notes that a filing found incomplete at intake may be rejected or met with a request for more information.

Under file-and-use laws, rates may already be in use while questions are open; the handbook notes that the department retains the right of subsequent disapproval, which in most instances applies prospectively.

Learning from prior objections

Objection history is one of the most useful inputs to a new filing. Internally, keep a log of every objection by state, line, theme and outcome, along with the response that closed it. Externally, NAIC's SERFF Filing Access gives public online access to rate and form filings that participating states make available. Where a state's public records include correspondence, the objection letters and responses on other carriers' filings show what a department has recently asked about and what answers it accepted. Reviewing a handful of recent filings for the same state and line before submitting is often the fastest way to anticipate the first letter.