Presentation is loading. Please wait.

Presentation is loading. Please wait.

Market Reform Office with ACORD Market Reform Contract (MRC) for Binding Authorities and Lineslips Andy Brookes & Steve Hulm (MRO), Paul Brady (Lloyd’s),

Similar presentations


Presentation on theme: "Market Reform Office with ACORD Market Reform Contract (MRC) for Binding Authorities and Lineslips Andy Brookes & Steve Hulm (MRO), Paul Brady (Lloyd’s),"— Presentation transcript:

1 Market Reform Office with ACORD Market Reform Contract (MRC) for Binding Authorities and Lineslips Andy Brookes & Steve Hulm (MRO), Paul Brady (Lloyd’s), Mark Knight (LMBC), David Banks (Travelers) 3 April 2008

2 Market Reform 1 Summary Very little has changed!

3 Market Reform 2 Contents Background MRC (Binding Authorities) –Lloyd’s Bulletin (Y4133) MRC (Lineslips) Implementation Timescale & Actions Market Reform Contract Endorsement (MRCE) Future Plans & Actions for You

4 Market Reform 3 Background Why change at all? MRC (Open Market) MRCE Combined Certificates & Several Liability –Lloyd’s Bulletin Y4133 Overall, close call but worth new version

5 Market Reform 4 Lloyd’s Bulletin – Y4133 Combined certificates – where proportion of security provided by non-Lloyd’s insurers (“mixed markets”) Prohibited until now in US (by Lloyd’s) Now reviewed (at request of market) Primary concern – to ensure Lloyd’s syndicates not liable for non-Lloyd’s participations

6 Market Reform 5 Lloyd’s Bulletin – Y4133 Bulletin (11 March 2008) sets out new procedures for combined certificates and new several liability clause (LMA5096) The use of US combined certificates is now possible (but not mandatory) Underwriters can choose if/where to adopt

7 Market Reform 6 Lloyd’s Bulletin –Feedback/Queries Positive reaction – new business opportunities 100% Lloyd’s “joint certificates” –Can use existing procedures (including LSW1001) Risk placed with binder and open market participations –Coverholder is not authorised to issue a joint/combined certificate encompassing the open- market lines

8 Market Reform 7 MRC (Binding Authorities) - What has NOT changed The Model wordings (LMA3018 etc.) have not changed In any way The Schedules (& hence Schedule templates on website) have not changed In any way (despite example)

9 Market Reform 8 MRC (Binding Authorities) – Changes Where relevant, order of headings and sections amended in line with MRC (Open Market). Non-Schedule agreements section: –Headings removed: Order Hereon, Brokerage, Other Deductions from Premium, Signing Provisions –Heading renamed to: TAX PAYABLE BY THE INSURED AND ADMINISTERED BY INSURERS Information section: –Unchanged

10 Market Reform 9 MRC (Binding Authorities) – Changes Security Details section: –Now includes: Order Hereon, Basis of Written Lines, Basis of Signed Lines, Signing Provisions –Several Liability clause/heading not required within this section of MRC (BA) Subscription Agreement section: –Heading removed: Basis of Written lines –New conditional heading: Bureau Leader –Headings re-ordered

11 Market Reform 10 MRC (Binding Authorities) - Changes Fiscal and Regulatory section: –Headings renamed: TAX PAYABLE BY INSURERS, ALLOCATION OF PREMIUM TO CODING New Broker Remuneration and Deductions section: –Total Brokerage, Other Deductions from Premium

12 Market Reform 11 MRC (Binding Authorities) – Several Liability Y4133 has prompted a review of Several Liability requirements, & it is now agreed that: –MRC (Binder) does not require further Several Liability language, beyond that within the model wording and that to be used on each certificate (specified within the Schedule) –The clause for each certificate may be LMA5096 (for Combined Certificates) or as current (such as LSW1001) –Do not use LMA3333 on MRC (BA) or on certificates

13 Market Reform 12 MRC (Lineslips) – Changes Where relevant, order of headings and sections amended in line with MRC (Open Market). Contract Details: –Headings removed: Order Hereon, Several Liability of the Lineslip, Brokerage, Other Deductions from Premium, Signing Provisions –Headings renamed to: TAX PAYABLE BY THE INSURED AND ADMINISTERED BY INSURERS FOR EACH INSURANCE BOUND, INSURER CONTRACT DOCUMENTATION FOR EACH INSURANCE BOUND

14 Market Reform 13 MRC (Lineslips) – Changes Information section: –Unchanged Security Details section: –Now includes: Order Hereon, Basis of Written Lines, Basis of Signed Lines, Signing Provisions. –Several Liability clause/heading not required within MRC (LS)

15 Market Reform 14 MRC (Lineslips) - Changes Subscription Agreement section: –Heading removed: Basis of Written lines –New conditional heading: Bureau Leader –Headings re-ordered Fiscal and Regulatory section: –Headings renamed: TAX PAYABLE BY INSURERS, ALLOCATION OF PREMIUM TO CODING

16 Market Reform 15 MRC (Lineslips) - Changes New Broker Remuneration and Deductions section: –Total Brokerage, Other Deductions from Premium

17 Market Reform 16 Implementation Timescale & Actions MRC (BA) and MRC (LS) published in March 2008 They can be used immediately They are the London Market standard from 1 July 2008 Placing of Binder and Lineslip Declarations & Off-slips unaffected

18 Market Reform 17 MRCE for Binders and Lineslips The format to be used for endorsements to the Binder or Lineslip itself Replaces the honeycomb Comparable to MRCE (Open Market) –With minor changes in terminology Published April 2008 London Market Standard from 1 August/September 2008

19 Market Reform 18 Future Plans Minor changes to MRC (Open Market) – Summer 2008 –Which may affect Lineslip Declarations –Clarification only, no changes to headings No further changes currently planned for MRC (BA) or (LS)

20 Market Reform 19 Actions for You Understand the changes –Today’s session –Documentation on website (MRC & MRCE) –Lloyd’s Bulletin (Y4133) Disseminate the information –To others within your organisation Make it happen!

21 Market Reform 20 Links Lloyd’s Bulletin Y4133 rc.nsf/mktBulletins/Y4133/$file/Y4133.pdf MRC for Binders: nce_pg1.htm MRC for Lineslips: nce.htm Endorsements (MRCE) for Binders & Lineslips: –Watch this space

22 Market Reform 21 Contacts LMBC:

23 Market Reform Office with ACORD Questions for Panel? Mark Knight (LMBC), David Banks (Travelers), Paul Brady (Lloyd’s), Steve Hulm (MRO) 3 April 2008


Download ppt "Market Reform Office with ACORD Market Reform Contract (MRC) for Binding Authorities and Lineslips Andy Brookes & Steve Hulm (MRO), Paul Brady (Lloyd’s),"

Similar presentations


Ads by Google