DEFINITION of 'Correction Notice'

A notice indicating that a process or application contains errors that require corrections. Correction notices are typically issued by government agencies, and may be issued for a variety of reasons. The government may want to clarify how organizations can participate in a government-sponsored program, ask applicants to update their applications because of missing or incomplete information, or address how organizations and individuals can comment on a proposed regulation.

BREAKING DOWN 'Correction Notice'

Government agencies that sponsor insurance programs, such as the Centers for Medicare & Medicaid Services, provide guidelines to organizations that want to offer plans in federally-facilitated insurance marketplaces. These guidelines include operational and technical instructions to help organizations ensure that they are meeting all the necessary requirements and comply with certification standards, and include information about the application process.

Because the application process can be complicated, agencies may have to issue a correction notice if instructions were too vague or contained incorrect information. The correction notice will supersede the original instructions it is meant to correct. For federal programs, corrections notices are published in the Federal Register which can be viewed by the public and is where notifications about federal programs and regulations are posted.

Organizations that submit an application to participate in a government program go through a multi-step review process. After submission, the application is reviewed to ensure that it has been completed correctly. If there is missing or unclear information, the reviewing agency will send out a correction notice. A correction notice issued to a business trying to obtain a license, for example, may indicate that the business failed to have the application notarized or forgot to sign the application document. The business will have the opportunity to fix the error and resubmit the application. If the business makes further errors, it may have additional correction notices issued to it.

  1. Regulation B

    Regulation B is a regulation intended to prevent applicants from ...
  2. Error Of Principle

    An error of principle is an accounting mistake in which an entry ...
  3. Request For Application - RFA

    A type of solicitation notice in which an organization announces ...
  4. Notice To Creditors

    A public notice to the creditors and debtors of an estate. The ...
  5. Delivery Notice

    A notice written by the holder of the short position in a futures ...
  6. Enterprise Application Integration

    The translation of data and other commands from one application ...
Related Articles
  1. Investing

    Distinguish A Stock Price Correction With A Price Trend

    We explain how you can use trend lines to help avoid market corrections.
  2. Personal Finance

    Common Interview Questions for Project Managers

    Discover the basic skills needed for a position as a project manager along with common interview questions used in applying for such a position.
  3. Retirement

    How to Fix an Error on Your Social Security Check

    For many seniors, social security benefits checks are their income stream which means the benefit has to be correct. If you spot an error, you can fix it.
  4. Insights

    The Right Decision When a Market Correction Is Due

    Markets keep hitting record highs. How should investors prepare for an inevitable correction?
  5. Retirement

    10 Best Smartphone Apps For Seniors

    Whether it's for health, news or personal finance, these apps can be useful for seniors. Best of all, they are free.
  6. Investing

    Why a 10% Stock Correction May Be Good

    Brace Yourself! Some Investors say a quick 10% decline could fuel longterm growth
  7. Investing

    Why a Stock Market Correction May Lead to Overreaction

    Today's investors, complacent from low volatility and soaring indexes, may overreact to a correction.
  8. Financial Advisor

    What to do During a Market Correction

    The market has what? Here's what you should consider rather than panicking.
  9. Personal Finance

    What Gets You In Grad School: GPA Vs. Work History

    Grad schools usually take a holistic approach when evaluating applicants. That means it's a good idea to scrutinize every aspect of your application.
  10. Financial Advisor

    All About Impaired Risk Annuites and Insurance

    What are impaired risk insurance products and understanding life insurance rate classes, table ratings and flat extra premiums.
  1. How can I protect my portfolio from market corrections?

    Learn about some of the types of investment strategies designed to protect an investment portfolio from losing value during ... Read Answer >>
  2. How do I apply for Social Security retirement benefits?

    Understand the process of applying for Social Security benefits, the kinds of information and documentation you need, and ... Read Answer >>
  3. Under the Investment Company Act of 1940, an investment company must have minimum ...

    A. $25,000B. $50,000C. $100,000D. $500,000 Correct answer: CAn investment company (mutual fund) must have at ... Read Answer >>
  4. How is a market failure corrected?

    Find out how to think about market failures, how they tend to be corrected and different proposals about the best way to ... Read Answer >>
Hot Definitions
  1. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  2. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability ...
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  6. Capital Asset Pricing Model - CAPM

    A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. ...
Trading Center