Auto EDI Notifications Overview



Auto EDI Notifications

State Farm's Auto Notification System delivers electronic documents to all lenders, loan servicers, and servicing bureaus that accept the 811 Motor Vehicle Insurance Coverage Notification (version 3050) national standard. The national implementation guide for this standard can be acquired at Washington Publishing Company.

The 811 Motor Vehicle Insurance Coverage Notification (version 3050) Implementation Guide will enable the use of Electronic Data Interchange (EDI) for the notification of insurance coverage for both loans and leases for motor vehicles. The 811 Consolidated Service Invoice/Statement will be sent electronically between trading partners. The X12 transaction is used to send this information.

System Purpose

State Farm supports the industry’s national standard for communicating information affecting our auto policies.   Because of the volume of notifications in the insurance industry, State Farm has developed automated tools to ensure each lender can have its interests protected by our insurance.

Background

  • Information currently sent by insurance companies to financial institutions for lienholder/additional insured notification would be automated through the use of this transaction. 
  • Expected users are insurance companies, financial institutions and providers of loan and lease insurance tracking services. 
  • Communication would be initiated by the insurance companies and their agents and sent to financial institutions and providers of loan and lease insurance tracking services.

Purpose and Scope

  • This Draft Standard for Trail Use contains the format and establishes the data contents of the Insurance Coverage Notification (811) transaction set for use within the context of an Electronic Data Interchange (EDI) environment. This standard can be used to provide a notice of insurance coverage or insurance policy changes from an insurance company to parties which have an interest in the vehicle or insurance coverage on the vehicle. 
  • Insurance information is necessary to evaluate if the proper insurance is being selected and maintained. This standard can be used to evaluate if the insurance coverage on the motor is appropriate, as determined by the receiving party. 
  • Examples of this application are to ensure residence vehicle owners compliance with government regulations or to ensure that the financial institution’s interest or ownership in collateral pledged against a loan/lease is secured.

Implementation Plan

  • If you haven’t already evaluated your EDI readiness and resources, you should do so after reading this document. Optionally, this may involve contacting software vendors and State Farm regarding their preferred connection.
  • State Farm is implementing a new SMFT (State Farm Managed File Transfer) system.  State Farm prefers the external vendor connect to our SMFT server to deliver and pick up files. State Farm still has the option to connect securely to the vendor servicer if needed with FTPS (FTP with TLS) or SFTP (SSH).
  • Review trading partner and data exchange needs and agreements.
  • Sign and return the trading partner agreement. 
  • Develop necessary trading partner profiles (on your computer) and EDI translation software to support this transaction. 
  • Develop connection resources.
  • Perform internal testing. 
  • Perform connection testing. 
  • Use your contact list provided by your trading partners to notify them when you are ready to test. 
  • Begin EDI document exchange initially using a test mode with your trading partners. 
  • Adjust profiles, trading partner transaction and the data interchange agreement (when needed). 
  • Perform final “test mode” testing. Exchange Production related information when testing is completed. 
  • Establish when to initiate production processing with your trading partners.

Example Transaction Set Segment Uses and Sequence

997 Functional Acknowledgement electronic file

811 Auto Test File Example