An insurance carrier or third-party administrator sends this transaction set to an applicant, broker, or employer to communicate the current status of an insurance or annuity application. The 273 is typically transmitted in response to an application submission or periodic status inquiry. The BGN (Beginning Segment) establishes the application context and timeframe, the UD (Underwriting Status) segment conveys approval decisions or conditions at both the header and detail levels, and the ACT (Account Identification) segment organizes status information by specific policy or contract accounts. The transaction can include multiple accounts within a single message, with each account containing investment vehicle selections, beneficiary information, and any associated underwriting notes or rate details.

For example, New Horizon Insurance sends a 273 transaction set to ABC Brokerage to report the status of a variable annuity application submitted by John Smith. The message includes one ACT loop for Smith’s policy account, which contains a UD segment indicating “conditional approval pending receipt of medical records.” Within that account loop, a BEN loop identifies Smith’s designated beneficiary with her name and address, while an LX loop details the selected investment funds and their corresponding rates. The DTP (Date or Time or Period) segments mark the application submission date and the deadline for submitting medical underwriting documents. Any underwriting requirements or questions are captured in K3 (File Information) segments, allowing ABC Brokerage to promptly follow up with Smith to complete the application process.