The Market Reform
Lineslip Guidelines
October 2006
The Market Reform Lineslip
Table of Contents
1. Introduction.................................................................................................................. 3
2. Scope .......................................................................................................................... 3
3. Out of Scope ............................................................................................................... 3
4. The Franchise Board Mandate .................................................................................... 3
5. Enforcing & monitoring the use of the Lineslip ............................................................ 4
6. Variations to the Lineslip ............................................................................................. 4
7. Structure of the Lineslip ............................................................................................... 4
7.1
Panel 1 removal ........................................................................................................... 5
7.2
General ........................................................................................................................ 6
7.3
Contract Details Section ............................................................................................... 7
7.4
Subscription Agreement Section .................................................................................. 7
7.5
Fiscal and Regulatory Section...................................................................................... 7
7.6
Security Details Section ............................................................................................... 7
8. Declarations ................................................................................................................ 8
9. Further Information ...................................................................................................... 8
APPENDIX A – Market Reform Lineslip ............................................................................. 9
APPENDIX B – FSA Client Classification Headings Defined ........................................... 27
APPENDIX C – Expert Fees Collection ............................................................................ 28
APPENDIX D – Hold Cover Provisions ............................................................................ 29
APPENDIX E – Line Conditions ....................................................................................... 30
APPENDIX F – Unique Market Reference Guidance ....................................................... 32
APPENDIX G – Guide to Order Hereon ........................................................................... 33
Page 2 of 33
The Market Reform Lineslip
1. Introduction
The LMP Lineslip was introduced in June 2005 and was mandated by the Lloyd’s
Franchise Board for Lineslip business incepting from the 1 October 2005 (for reference
see the LMP Lineslip June 2005. This Market Reform Lineslip October 2006 replaces the
LMP Lineslip June 2005. These guidance notes have been updated to reflect changes in
the exemptions to the mandate, regulatory changes, and feedback from the market. The
changes made in this version of the Lineslip are designed to align it with the Contract
Certainty Code of Practice guidance issued by the Market Reform Group (MRG). This
document sets out details of the Lineslip and defines the business that falls within the
scope of the Lloyd’s Franchise Board mandate.
2. Scope
Lineslips are used by Brokers for example to access a group of Insurers who wish to
delegate their authority to enter into contracts of insurance to another Insurer in respect of
business introduced by a Broker named in the agreement1.
The Market Reform Lineslip should be used for the following:
All Lineslips placed by London Market Brokers where the Lineslip falls within the
definition of London Market Business as specified in the Contract Certainty Code of
Practice issued by the MRG.
N.B Some practitioners use the term “Marine Covers” to describe Lineslips for Marine
business where there is no common insured across the declarations bound. These are
Lineslips and must follow the Lineslip guidelines.
3. Out of Scope
The Market Reform Lineslip must not be used for:


Binding Authorities as these have separate guidelinesRefer to http://www.marketreform.co.uk/Binding_pubs1.htm
Marine Open Cargo Covers and Declarations attaching thereto. A Marine Open
Cargo Cover is held by an insured where such Insured has or is expected to acquire,
an insurable interest in each declaration bound.
Declarations or Offslips attaching to Lineslips as these must follow the Market Reform
Slip June 2006 guidelines.
4. The Franchise Board Mandate
The Franchise Board has prescribed the following standards and arrangements for the
conduct and administration of insurance business at Lloyd’s provided always that failure
to comply with these standards and arrangements shall not invalidate or call into question
any contract or agreement entered into by or on behalf of a managing agent or syndicate
nor shall failure to comply with these standards and arrangements create any right of
action or claim in any third party against a managing agent or syndicate, the authority to
enforce compliance being exclusively vested in the Franchise Board –
Where a Lloyd’s syndicate participates on the Lineslip, the business must be introduced by a named
Lloyd’s Broker.
1
Page 3 of 33
The Market Reform Lineslip
(a) as from 2nd January 2004, a managing agent shall not permit the syndicate stamp of
a syndicate managed by it to be affixed to any slip which relates to a contract or
contracts of insurance unless –
(i)
(ii)
(iii)
the slip is in the format, from time to time issued by the MRG and the information
contained in the slip has been properly completed in accordance with the
relevant guidelines issued by the MRG
the slip is marked “Market Reform Slip Exempt – Client Requirement”; or
the slip relates to motor business, personal lines business or term life insurance
business and the slip will not be processed by LPSO Limited;
(b) as from 28th October 2004, a managing agent shall not permit the syndicate stamp of
a syndicate managed by it to be affixed to any binding authority unless the slip has
been completed in accordance with the relevant slip guidelines from time to time
issued by the MRG.
(c) as from 1st October 2005, a managing agent shall not permit the syndicate stamp of a
syndicate managed by it to be affixed to any Lineslip unless the Lineslip has been
completed in accordance with the relevant Lineslip guidelines from time to time issued
by the MRG.
This means that:
a) Lineslips cannot be marked as “Client Exempt”; and
b) Declarations off Lineslips can only be marked as “Client Exempt” if
required by the client.
5. Enforcing & monitoring the use of the Lineslip
The Market Reform Programme Office (MRPO), in co-operation with the LMBC, the
IUA and the LMA, is in continuous dialogue with firms about improving quality, with
the aim of providing education and guidance to improve market standards.
6. Variations to the Lineslip
The following are valid variations to the Lineslip as incorporated into this document.
6.1 The order of Lineslip headings in the CONTRACT DETAILS section is not fixed.
6.2 There will be contract specific Lineslip headings that will need to be incorporated into
the Lineslip to allow for any unusual or additional CONTRACT DETAILS as deemed
necessary.
7. Structure of the Lineslip
Previous versions of the Lineslip consisted of three distinct “Panels” of information
namely:Panel 1
Panel 2
-
Panel 3
-
Data Form for bureau processing
Four separate sections namely CONTRACT DETAILS, SUBSCRIPTION
AGREEMENT, INFORMATION and FISCAL AND REGULATORY
Insurer security details
As part of the ongoing market reform to standardise the placing process it has been
agreed to remove Panel 1 from all Market Reform Lineslips. To simplify the structure of
the Lineslip the concept of Panels has been dropped and there are now five distinct
Page 4 of 33
The Market Reform Lineslip
sections. What was called Panel 3 now becomes the SECURITY DETAILS section. This
structure is shown in the diagram below.
OLD LMP LINESLIP STRUCTURE
PANEL
1
PANEL 2
CONTRACT DETAILS
MARKET REFORM LINESLIP STRUCTURE
PANEL
3
CONTRACT DETAILS
SUBSCRIPTION AGREEMENT
SUBSCRIPTION AGREEMENT
INFORMATION
INFORMATION
FISCAL & REGULATORY
FISCAL & REGULATORY
SECURITY DETAILS
Some contracts have previously required an additional Panel 1 form to be produced,
known as LPO301B forms for more complex bureau processing. These are no longer
required. However, Brokers should continue to provide LPO208 forms as necessary
where current market practice requires their use
7.1
Panel 1 removal
The data from Panel 1 can be categorised into:A)
B)
C)
Data that can be incorporated in existing Lineslip headings.
Data that is required and will be captured in new/additional headings within the
body of the Lineslip; and
Data that is obsolete.
A:
Incorporate data in existing Lineslip headings
Current Panel 1 Data
Items
Unique Market
Reference
Policy Number
Gross Premium
B:
Already Captured Under
Heading Name
Lineslip section
Unique Market Reference
Contract Details
Unique Market Reference or
Lineslip Reference
Premium
Contract Details
Contract Details
Incorporate data in new/additional Lineslip headings
Current Panel 1 Data
Items
Written Lines
Heading Name
Basis of Written Lines
Order/Closed For
Settlement Due Date
Risk Codes
Order Hereon
Settlement Due Date
Risk Codes
Page 5 of 33
Now Becomes
Lineslip section
Subscription Agreement
Contract Details
Subscription Agreement
Fiscal and Regulatory
The Market Reform Lineslip
C:
Obsolete Panel 1 data
Current Panel One Data Item
Reason why data is obsolete
Assured/ Reassured Account
Currency
Slip Registration
Binding Authority Registration Number
and Date
TOC Tribunal
Adjustable Scheme Indicator
USB/NUS/US
VAT Code
DTI Code
Serial Number
Certificate Numbers
EC-CCI/ Establishment/Services/NA
Brokers Cover Number
Gross Premium (War)
CPA Indicator (War)
Bureau Scheme Number
Bureau Signed line shares
Reference Number
Overseas Broker
Country of origin
DEF
ADJ
7.2
As there are many different Assureds/Reassureds under
a Lineslip this heading is not required.
This information was an unnecessary repetition of the
currency of the premium already shown in the Lineslip.
Slip Registration scheme no longer active.
Not applicable for Lineslips
The tribunal has now disbanded.
Not applicable for Lineslips
No longer required
Information not required from Broker
Information no longer required.
Reference field not used.
Information no longer required.
No longer an EU regulatory requirement.
UMR is primary reference. Other references such as this
do not need to be advised to the bureau or Insurers.
All premiums are shown under the PREMIUM heading.
Where applicable, a CPA clause will be shown under
CONDITIONS heading.
Xchanging already have this information in their enquiry
systems thus do not do need Broker to quote it.
The totals for each bureau will no longer be required as
these will be calculated by XIS
Majority of Brokers never use it and those that do
confirmed that they do not need it in the Lineslip.
As there may be many different Overseas Brokers under
a Lineslip this heading is not required.
As this is likely to vary by Declaration this heading is not
required.
No premium will be paid via bureau deferred
scheme hence, irrelevant heading.
No final adjustment of premium hence, irrelevant
heading.
General




There are five separate sections called CONTRACT DETAILS, SUBSCRIPTION
AGREEMENT, INFORMATION, FISCAL & REGULATORY and SECURITY DETAILS.
The inclusion of the Contract Details heading in the Lineslip is optional, not the
content. The other four section headings must be included.
Standard headings exist for the Subscription Agreement, Fiscal and Regulatory and
Information sections. The Subscription Agreement section headings must not be
changed, deleted, reordered or added to in any way. Furthermore the Subscription
Agreement section must not include any additional headings.
Where monetary amounts are stated on the Lineslip the currency must be clearly and
unambiguously identified and should not use symbols such as “£” or “$”. A commonly
accepted way of achieving this is to use the relevant three letter ISO currency code,
e.g. USD.
A Lineslip must not include any terms which are unspecific or create ambiguities, for
example any TBA’s (To Be Agreed/Advised). It is a requirement for Contract Certainty
that there is agreement of all terms between the insured and Insurers before the
Page 6 of 33
The Market Reform Lineslip

7.3
Contract Details Section



7.4

Insurers must not delete the Subscription Agreement section of the Lineslip or use
Stamp Conditions that specify “No Subscription Agreement” or “Ex Subscription
Agreement” or similar. If there are particular provisions Insurers do not wish to apply
to them, these can be explicitly stated against the relevant Subscription Agreement
heading or in exceptional circumstances not catered for in the Subscription
Agreement, be specified as a Line Condition. Refer to Appendix E for guidance.
The General Underwriters Agreement (GUA) must not be used on Lineslips or
declarations off Lineslips.
Fiscal and Regulatory Section

7.6
During placing the Broker and Insurers must ensure that the Lineslip clearly states all
the contract terms, references or attaches all Registered Wording and Registered
Clauses where used and attaches all bespoke and non-Registered Wording and nonRegistered Clauses in full.
Standard Lineslip provisions must be relevant to the risk or the administration of that
risk.
The heading Signing Provisions is now a mandatory heading to be completed on all
Lineslips and has been moved to the Contract Details section. Any variation of signed
lines resulting from these signing provisions will need to be the subject of documented
agreement of the parties to the contract i.e. Brokers and Insurers. The use of the
instruction “Line to Stand” or equivalent is valid. The use of any other signing
instructions, e.g. “X% to sign Y%” leads to ambiguity and must be avoided.
Subscription Agreement Section

7.5
Insurer formally commits to the contract. However if declarations are likely to differ
greatly from each other and therefore terms can not easily be specified on the Lineslip
it is permissible to put words similar to “to be agreed each and every insurance
bound”.
Where a non-registered/non-standard wording is agreed in the Lineslip a copy of the
agreed wording must be submitted to Xchanging Ins-sure Services with each
insurance bound if and when applicable.
Additional headings have been incorporated in the Fiscal and Regulatory section to
accommodate additional regulatory information required as a result of Panel 1
becoming obsolete.
Security Details Section


The Contract Certainty Code of Practice requires Insurers to phase out the use of
Stamp and Line Conditions and accordingly these should be phased out during 2006.
Stamp Conditions should be removed and recorded elsewhere, as per the guidance in
Appendix E. Only certain Line Conditions that are relevant to the risk and cannot be
specified elsewhere may remain in the Security Details section after the
implementation period has elapsed.
If Line Conditions are still necessary they must not contain acronyms or abbreviations
but should state the condition in full, for example “No LOC” should be stated “No
Letters of Credit”. For further guidance refer to Appendix E.
A detailed definition of the mandatory headings required in each section of the Lineslip
can be found in Appendix A.
Page 7 of 33
The Market Reform Lineslip
8. Declarations
Declarations off Lineslips should follow the Market Reform Slip guidelines for open
market (refer to. http://www.marketreform.co.uk/slip_documentation1.htm)
 The General Underwriters Agreement (GUA) must not be used for Declarations
off Lineslips. Endorsements should be agreed by the same agreement parties
that agreed the Declaration off the Lineslip. Where an endorsement makes a
change that, in the opinion of the agreement parties, may impact all Insurers the
agreement parties should refer the endorsement to all Insurers. For example an
endorsement may add an additional class of business which some Insurers
may not be able to or wish to underwrite.
 The UMR and LPSO Signing number and date for the Lineslip must be shown
clearly on the Declarations off the Lineslip.
 Each Declaration off the Lineslip must have a separate UMR
 A Declaration off a Lineslip should not contain open market lines unless
expressly permitted by the Lineslip.
 All Declarations off Bulking Lineslips with one or more subscribing Lloyd’s
Insurer(s) must be submitted to XIS for Stage 2 signing.
 All Declarations off Non-Bulking Lineslips with one or more subscribing Lloyd’s
Insurer(s) must be submitted to XIS for Stage 1 and Stage 2 signing
9. Further Information
For further information on the Market Reform Lineslip or any of the other market reforms please
contact:
Type of Query
General
Queries
Brokers
Lloyd’s
Insurers
IUA Insurers
Contact
Steve Hulm – MRPO
Tel: 020 7327 5249
Fax: 020 7327 5227
Email: steve.hulm@lloyds.com
Mark Knight – LMBC
Tel: 020 7397 0252
Fax: 020 7626 0564
Email: mark.knight@lmbc.co.uk
Adrian Graham - LMA
Tel: 020 7327 8378
Fax: 020 7623 9390
Email: adrian.graham@lloyds.com
John Hobbs – IUA
Tel: 020 7617 4445
Fax: 020 7617 4440
Email: john.hobbs@iua.co.uk
Page 8 of 33
Address
Gallery 7
Lloyd’s
1 Lime Street
LONDON
BIBA House
14 Bevis Marks
LONDON
Suite 1085
Lloyd’s
1 Lime Street
LONDON
Suite 7
LUC
3 Minster Court
LONDON
The Market Reform Lineslip
APPENDIX A – Market Reform Lineslip
CONTRACT DETAILS
LINESLIP STRUCTURE
LINESLIP EXAMPLE
UNIQUE MARKET This reference can be incorporated as a
separate heading or as a header on each page
REFERENCE:
Unique Market
Reference:
B0123ABC1234
TYPE:
The type of Lineslip, either Bulking or NonBulking.
TYPE:
Non-Bulking Lineslip/ Bulking Lineslip*
(* Delete as applicable)
FORM FOR EACH
INSURANCE
BOUND:
The NMA reference or other identification
of the policy jacket. Where this is the same
on each insurance bound it can be
specified here. Where it is likely to vary by
declaration “As agreed by the agreement
parties for each insurance bound” should
be stated
FORM FOR EACH
INSURANCE
BOUND:
As agreed by the agreement parties for each
insurance bound
LINESLIP
REFERENCE:
The Lineslip reference used by the Broker
to identify the Lineslip. This can be a
number or a name. If this is the same as
the UMR then this heading may be omitted.
LINESLIP
REFERENCE:
DEF1
of the Lineslip. It is used to distinguish individual
insurance contracts. It must start with “B”
followed by the Lloyd’s Broker number and then
a unique reference which cannot have more
than 12 alphanumeric characters. Refer to
Appendix F for guidance on correct completion.
Page 9 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
BROKER:
AUTHORISED
CLASSES OF
BUSINESS AND
COVERAGES:
EXCLUSIONS
WITHIN THE
AUTHORISED
CLASSES OF
BUSINESS AND
COVERAGES:
LINESLIP EXAMPLE
The name and address of the Broker
responsible for placing the Lineslip and
administering the Lineslip. Where the
Lineslip may be used by other Brokers this
should be specified.
The authorised classes of business and
coverages that may be accepted under the
Lineslip.
Any exclusions that apply to the classes of
business and coverages specified in the
previous heading.
Page 10 of 33
BROKER:
AUTHORISED
CLASSES OF
BUSINESS AND
COVERAGES:
EXCLUSIONS
WITHIN THE
AUTHORISED
CLASSES OF
BUSINESS AND
COVERAGES:
XYZ Broker Ltd
123 Wickley Road
London
United Kingdom
L20 1MP
Commercial Property
Excluding terrorism perils
The Market Reform Lineslip
LINESLIP STRUCTURE
PERIOD:
EXTENSIONS OF
PERIOD OF
LINESLIP:
LINESLIP EXAMPLE
The Period of the Lineslip. This should be
specified on a “risks attaching basis” and
must include the inception date and time
of day, expiry date and time of day and the
time zone. As an alternative to specifying
the time of day it is acceptable to specify
both days inclusive, although the time
zone is still required.
Where a Lineslip accepts business from
anywhere in the world then the phrase
“Any Time Zone” is acceptable. Lineslips
should be for no more than 12 months
from inception. However, subject to the
agreement of the agreement parties
specified under “Basis of Agreement to
Lineslip changes”, it is possible to extend
the period of the Lineslip, but in no event
should it exceed 18 months from
inception.
For Lineslips where specific dates of
inception or expiry are not known, for
example voyages, constructions and
sporting events, the specific events
dictating the period must be stated.
The extent and duration of any extensions
to the period of the Lineslip that may be
given and who needs to agree such
extensions. The agreement parties for such
extensions in period are to be shown under
the “Basis Of Agreement To Lineslip
Changes” heading in the Subscription
Agreement section.
Page 11 of 33
PERIOD:
Risks attaching during the period:
From: 1st June 2006
To: 31st May 2007
Both days inclusive any time zone.
EXTENSIONS OF
PERIOD OF
LINESLIP:
This Lineslip may be extended for a period of
up to XX months subject to the agreement of
the agreement parties specified under Basis
Of Agreement To Lineslip Changes.
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
MAXIMUM PERIOD
OF EACH
INSURANCE
BOUND:
The maximum duration of any Declaration
off a Lineslip including any provisions for
odd time and extensions. The agreement
parties for such extensions must be shown
under the “Agreement Parties for Each
Insurance Bound” heading in the
Subscription Agreement section.
MAXIMUM PERIOD
OF EACH
INSURANCE
BOUND:
ORDER HEREON
Slip closings i.e. whether the signed lines
are percentages of the whole or
percentages of the slip’s order. The
percentage of slip order also needs to be
clearly specified. This heading should be
completed in the format X% of Y%. Both
percentages must be completed on all
contracts. Refer to Appendix G for
guidance on correct completion.
ORDER HEREON:
MAXIMUM LIMITS
OF LIABILITY/
SUMS INSURED
FOR EACH
INSURANCE
BOUND:
The maximum limits of Liability/Sums
Insured for each insurance bound.
MAXIMUM LIMITS
OF LIABILITY/
SUMS INSURED
FOR EACH
INSURANCE
BOUND:
MAXIMUM
AGGREGATE
LIMIT(S)
The maximum aggregate limits for all
insurances bound.
MAXIMUM
Maximum GBP XX,XXX,XXX
AGGREGATE LIMIT
Page 12 of 33
No insurance shall be bound for a period
greater than XX months plus odd time, not
exceeding XX months in all plus any
extensions as may be agreed by the
agreement parties for each insurance bound.
100% of 100%.
Maximum GBP XX,XXX,XXX each and every
loss each insurance bound.
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
TERRITORIES
FROM WHICH
EACH
INSURANCE MAY
BE BOUND:
The country of domicile of the insureds that
may be bound.
TERRITORIES
Anywhere in the world
FROM WHICH EACH
INSURANCE MAY
BE BOUND:
TERRITORIAL
LIMITS OF EACH
INSURANCE
BOUND:
The territories and geographical limits of
each insurance bound.
TERRITIORIAL
LIMITS OF EACH
INSURANCE
BOUND:
Anywhere in the world
CONDITIONS OF
EACH INSURANCE
BOUND:
Identification, qualification or variation in
perils including the wording, clauses,
conditions and amendments to any clauses
in basic form including any applicable
territorial wordings. All standard wordings
and clauses must be clearly identified by
name and reference. Any non-standard
wording or clauses must be referred to
here and attached to the Lineslip.
CONDITIONS OF
EACH INSURANCE
BOUND:
Each insurance bound shall include:
NOTICES OF
EACH INSURANCE
BOUND:
An optional heading where any notices other
than “Several Liability Notice” must be recorded.
E.g. Lloyd’s Privacy Statement LSW 1135 B.
NOTICES OF EACH
INSURANCE
BOUND:
Lloyd's Privacy Statement LSW1135B
Page 13 of 33
XYZ wording as may be agreed by the
agreement parties for each insurance bound
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
EXPRESS
WARRANTIES OF
EACH INSURANCE
BOUND
Any express warranties that apply to each
insurance bound, over and above any that
may be incorporated in the Policy Form or
implied warranties from legislation such as
the Marine Insurance Act 1906, including
the consequences of non-compliance. If
there are no express warranties this
heading would not be included.
EXPRESS
WARRANTIES OF
EACH INSURANCE
BOUND
(To be inserted if any).
CONDITIONS
PRECEDENT OF
EACH INSURANCE
BOUND:
Any conditions precedent that apply to
each insurance bound, over and above
any that may be incorporated in the Policy
Form or legislation, including the
consequences of non-compliance. If there
are no conditions precedent this heading
would not be included.
CONDITIONS
PRECEDENT OF
EACH INSURANCE
BOUND:
(To be inserted if any).
SEVERAL
LIABILITY OF THE
LINESLIP:
The several liability notice that applies to
the Lineslip.
SEVERAL
LIABILITY OF THE
LINESLIP:
Page 14 of 33
The subscribing Insurers obligations under
contracts of insurance to which they
subscribe are several and not joint and are
limited solely to the extent of their individual
subscriptions. The subscribing Insurers are
not responsible for the subscription of any co
–subscribing Insurer who for any reason
does not satisfy all or parts of its obligations.
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
CHOICE OF LAW &
JURISDICTION OF
THE LINESLIP:
The court that will have jurisdiction in the
event of a dispute between the Broker and
Insurers over the terms of the Lineslip, and
the law that will apply. Further Lloyd’s
information on this heading is available in
Lloyd’s bulletins Y3406 and Y3327 and for
LMA members letter LTM04-056-WFR
CHOICE OF LAW &
JURISDICTION OF
THE LINESLIP:
This Lineslip shall be governed by and
construed in accordance with the laws of
England and Wales and each party agrees to
submit to the exclusive jurisdiction of the
courts of England and Wales.
CHOICE OF LAW &
JURISDICTION OF
EACH INSURANCE
BOUND:
The court that will have jurisdiction in the
event of a dispute between the Insured and
Insurers over the terms of the insurance
bound, and the law that will apply. Further
Lloyd’s information on this heading is
available in Lloyd’s bulletins Y3406 and
Y3327 and for LMA members letter LTM04056-WFR
CHOICE OF LAW &
JURISDICTION OF
EACH INSURANCE
BOUND:
As agreed by the agreement parties for each
insurance bound.
PREMIUM:
The basis of any premium calculations that
will be used on each insurance bound.
PREMIUM:
As agreed by the agreement parties for each
insurance bound.
GROSS PREMIUM
INCOME LIMIT:
The gross premium income limit that the
agreement parties may enter into under the
Lineslip.
GROSS PREMIUM
INCOME LIMIT:
GBP XX XXX XXX
NOTIFIABLE
PERCENTAGE OF
THE LIMIT NOT TO
EXCEED:
The Broker shall monitor the total gross
premium income bound and notify the
Insurers immediately if it becomes
apparent that the total gross premium
income is likely to exceed the percentage
of the limit stated.
NOTIFIABLE
PERCENTAGE OF
THE LIMIT NOT TO
EXCEED:
75%
Page 15 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
PAYMENT TERMS:
PREMIUM
BORDEREAU(X)
INTERVAL:
LINESLIP EXAMPLE
Non-Bulking Lineslips Only
The Premium Payment Terms applied to
each Declaration off the Lineslip. Should
include Premium Payment Warranties or
Conditions. N.B. if there are no payment
terms then this can either be left blank or be
shown as Not Applicable
OR
Bulking Lineslips Only
This heading only applies to Bulking
Lineslips where bulk premium settlements
are to be made to Insurers via a premium
bordereau. This shows how often such
bordereau(x) are to be settled. e.g. monthly.
Premium Payment Warranties should not be
applied to declarations off Bulking Lineslips.
PAYMENT TERMS:
60 day premium payment condition – LSW3000
or
As agreed by the agreement parties for each
insurance bound
OR
PREMIUM
BORDEREAU(X)
INTERVAL:
TOTAL
BROKERAGE:
The maximum total Brokerage allowance or
fee.
TOTAL
BROKERAGE:
OTHER
DEDUCTIONS
FROM PREMIUM:
Any additional deductions from premium
e.g. administration fees, sundry payments.
OTHER
DEDUCTIONS
FROM PREMIUM:
Monthly
As agreed by the agreement parties for each
insurance bound up to a maximum of XX%
of gross premium.
As agreed by the agreement parties for each
insurance bound.
or
None
Page 16 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
TAX PAYABLE BY
THE INSURED
AND
ADMINISTERED
BY
UNDERWRITERS
FOR EACH
INSURANCE
BOUND:
Any premium taxes and charges payable
by the (re)insured in addition to the
premium stated above, which are collected
and/or administered by Insurers for each
insurance bound e.g. 5% UK Insurance
Premium Tax. Any premium taxes and
charges payable by Insurers should be
shown in the Fiscal & Regulatory section.
TAX PAYABLE BY
THE INSURED AND
ADMINISTERED BY
UNDERWRITERS
FOR EACH
INSURANCE
BOUND:
As agreed by the agreement parties for each
insurance bound.
PROFIT
COMMISSION:
Details of any contingent or profit
commission that may apply to the Lineslip.
An agreed formula for calculating profit
commission must be attached.
PROFIT
COMMISSION:
None
CANCELLATION
NOTICE OF THE
LINESLIP:
The number of days notice that
Broker/Insurer must give in order for the
Lineslip to be cancelled.
CANCELLATION
NOTICE OF THE
LINESLIP:
This Lineslip is subject to XX days notice of
cancellation from either the Slip Leader or the
Broker.
RECORDING,
TRANSMITTING &
STORING
INFORMATION:
Details of procedures for storage of data,
documents and other information. This
heading is optional.
RECORDING,
TRANSMITTING &
STORING
INFORMATION:
Where the Broker maintains risk and claim
data/information/documents the Broker may
hold data/information/documents
electronically.
SIGNING
PROVISIONS:
Slips must contain signing provisions
detailing how the signed lines will be
determined.
SIGNING
PROVISIONS:
Model signing provisions for open-market
risks are published on the market reform
website
(http://www.marketreform.co.uk/contractcerati
nty_guidance2.htm - Signed Lines Guidance);
these can be modified as required for
lineslips.
Page 17 of 33
The Market Reform Lineslip
SUBSCRIPTION AGREEMENT
LINESLIP STRUCTURE
SLIP LEADER OF
THE LINESLIP:
LINESLIP EXAMPLE
SLIP LEADER OF
THE LINESLIP:
State who is the Slip Leader for the
Lineslip. The Slip Leader for each
insurance bound will be specified in
each declaration. If the Slip Leader for
the Lineslip is known when the slip is
produced it must be added by the
Broker. If it is not known when the
Lineslip is produced the Slip Leader
inserts their name here when they
write their line. It is only possible to
have one Slip Leader for London
(Bureau) Market business; however in
situations where a non-bureau lead
exists on the same Lineslip it is
possible to annotate the right hand
side of the Lineslip with the headings
OVERALL
SLIP
LEADER
and
LONDON MARKET SLIP LEADER. In
such cases subsequent provisions will
need to be specific with regard to any
Slip Leader agreements.
Page 18 of 33
ABC Syndicate
The Market Reform Lineslip
LINESLIP STRUCTURE
SETTLEMENT DUE
DATE:
BASIS OF
WRITTEN LINES:
LINESLIP EXAMPLE
Please note that the date shown here is
not a “Premium payment warranty” or a
“Premium payment condition”. These
must continue to be shown under the
“Payment terms” heading in the
CONTRACT DETAILS section. If an
underwriter requires the settlement due
date to be the same on each
declaration the number of days from the
inception date of each declaration
should be shown here. The location of
the SDD in this section of the Lineslip
does not confer any change in legal
effect of the SDD or the implications of
non-compliance
SETTLEMENT DUE
DATE:
The basis on which subscribing
(re)Insurers written lines are applied to
the order or contract. There are three
variations that may be used. These are
mutually exclusive. No other option may
be entered under this heading. Further
guidance can be found in Appendix H.
The options are:
 Percentage of Whole
 Percentage of Order
 Part of Whole (Can only be
used where orders are
expressed as monetary
amounts and not percentages)
 As agreed by the agreement
parties for each insurance
bound.
BASIS OF
WRITTEN LINES:
For a Non Bulking Lineslip:
90 days from inception of each insurance
bound.
or
For a Bulking Lineslip:
XX days from the end of each Premium
Bordereau(x) Interval
Page 19 of 33
As agreed by the agreement parties for
each insurance bound.
The Market Reform Lineslip
LINESLIP STRUCTURE
AGREEMENT
PARTIES FOR
EACH INSURANCE
BOUND AND
ALTERATIONS
THERETO:
BASIS OF
AGREEMENT
TO LINESLIP
CHANGES:
LINESLIP EXAMPLE
State those Insurers who will bind
insurances and any alterations thereto
on behalf of the subscribing Insurers
and the method by which reporting to
followers is undertaken, if any.
Specify which Insurers will agree
changes to the Lineslip. N.B. The GUA
must not be used on Lineslips. For
classes of business where it is market
practice
to
provide
a
copy
endorsement to the following market,
the method/media should be specified
here e.g. email, paper, etc.
Page 20 of 33
AGREEMENT
PARTIES FOR
EACH INSURANCE
BOUND AND
ALTERATIONS
THERETO:
Slip Leader
GHI Company Ltd
BASIS OF
AGREEMENT
TO LINESLIP
CHANGES:
All changes to this Lineslip to be agreed by
(specify Agreement Party(ies) here).
The Market Reform Lineslip
LINESLIP STRUCTURE
DOCUMENT
PRODUCTION FOR
EACH INSURANCE
BOUND:
LINESLIP EXAMPLE
The type(s) of evidence of cover to be
produced, who produces it, and any
particular requirements e.g. any
provisions relating to copies of
wordings in a foreign language.
DOCUMENT
PRODUCTION FOR
EACH INSURANCE
BOUND:
As agreed by the agreement parties for
each insurance bound.
RULES AND
EXTENT OF ANY
AUTHORITY
DELEGATED TO
THE BROKER:
None
The appropriate evidence of cover
including details of security issued
within 30 days of inception. The
appropriate evidence of cover may be
any one of the following: Evidence of Cover to be issued
by Insurers or their agent in the
form of a policy document
 Evidence of Cover to be
provided by "Broker company
name" in the form of a complete
and accurate copy of the
Declaration off the Lineslip
 Evidence of Cover to be
provided by "Broker company
name" in the form of a Brokers
Insurance Document
RULES AND
EXTENT OF ANY
AUTHORITY
DELEGATED TO
THE BROKER:
What authority, if any, the Insurers
have delegated to the Broker in
relation to the Lineslip including any
Hold Cover provisions. This should
show the limit of the Broker’s authority.
(for further information please see
Appendix D)
Page 21 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP
ADMINISTRATION:
LINESLIP EXAMPLE
LINESLIP
ADMINISTRATION:
The procedures and arrangements
agreed between the Broker and
Insurers relevant to the ongoing
administration of the Lineslip.
In the event of non-renewal or cancellation
of this Lineslip, all declarations shall run to
their natural expiry date (including any
extension of individual Policy periods as
may be agreed by the agreement parties for
each insurance bound), unless cancelled in
accordance with the individual Policy terms
and conditions.
Premiums for all Declarations off the
Lineslip shall be allocated and paid in to the
year of account in which this Lineslip
incepts.
CLAIMS
AGREEMENT
PARTIES:
CLAIMS
AGREEMENT
PARTIES:
Identity of the claims agreement
parties for each insurance bound e.g.
Slip Leader, plus the first IUA company
and Xchanging Claims Services
Claims to be agreed by the Slip Leader and:
I.
the first Lloyd’s syndicate in the
event that the Slip Leader is a IUA
company
II. the first IUA company in the event
that the Slip Leader is a Lloyd’s
Syndicate
III. Xchanging Claims services
where there is more than one
participating Lloyd’s managing
agent
IV. All non-bureau Insurers each
for their own proportion
Page 22 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
LINESLIP EXAMPLE
BASIS OF CLAIMS
AGREEMENT:
Specify the basis of the claims
procedure(s) such as the Lloyd’s 2006
claims scheme for Lloyd’s participation
and IUA claims agreement practices for
company market participation.
BASIS OF CLAIMS
AGREEMENT:
Claims to be managed in accordance with
the Lloyd’s 2006 Claims Scheme and IUA
claims agreement practices.
CLAIMS
ADMINISTRATION:
All claims related information with the
exception
of
identification
of
agreement parties and the basis of
claims agreement should be included
here. Clarification is required as to
which Insurers will use CLASS and the
use of email and/or access to
repositories.
CLAIMS
ADMINISTRATION:
Broker to enter claim advices into CLASS.
All company market bureaux Insurers(s) to
use CLASS for claims agreement.
RULES AND
EXTENT OF ANY
OTHER
DELEGATED
CLAIMS
AUTHORITY:
ABC Syndicate delegates the management
of all claims under GBP XX,XXX to
Xchanging Claims Services.
RULES AND
EXTENT OF ANY
OTHER
DELEGATED
CLAIMS
AUTHORITY:
If any of the claims agreement parties
specified above have delegated their
claims processing and agreement to
any other party this should be specified
here including any limits that may
apply, e.g. all claims less than GBP
XXXX or experts fees GBP XXXX.
It is unlikely that the Broker will be
aware of any such arrangements that
Insurers may have, so the Insurers who
are the claims agreement parties must
amend this as necessary.
Page 23 of 33
The Market Reform Lineslip
LINESLIP STRUCTURE
EXPERT(S) FEES
COLLECTION:
LINESLIP EXAMPLE
EXPERT(S) FEES
COLLECTION:
As agreed by the agreement parties for
each insurance bound
BUREAUX
Any specific arrangements relating to the
ARRANGEMENTS: bureaux
including
administrative
arrangements for premium settlement,
delinked accounting, and policy signing
or basis of policy agreement clauses.
BUREAUX
ARRANGEMENTS:
Delinked accounts for each insurance
bound to be presented by Broker to XIS.
NON BUREAUX
To be used as appropriate to record and
ARRANGEMENTS: specify provisions relating to Insurers
outside of the bureau.
NON BUREAUX
ARRANGEMENTS:
(To be inserted if any.)
SPECIAL
ARRANGEMENTS:
SPECIAL
ARRANGEMENTS:
(To be inserted if any)
The party(ies) responsible for the
collection of experts fees. Where this is
the same on each insurance bound it
can be specified here. Where it is likely
to vary by declaration “As agreed by
the agreement parties for each
insurance bound” should be stated
There are six options available under
the experts fees collection
arrangements. These options can be
found in Appendix C of this document.
N.B. this heading is optional on
Reinsurance business.
Any other arrangements affecting the
contract which cannot be more
specifically accommodated in the
preceding headings
Page 24 of 33
The Market Reform Lineslip
INFORMATION
Loss History as provided by the Broker at 1st August
2006:
Details of any information provided to Insurers to support the
assessment of the Lineslip at the time of placement. Where
the information is appropriate for inclusion in the Lineslip it
should be shown here. Where the size or format of the
information is not suitable for inclusion the location of the
information should be clearly referenced under this section
and should be made available to all Insurers during placing.
Year
2002/03:
2003/04:
2004/05:
2005/06:
2006/07:
Page 25 of 33
Net Absolute Premium
GBP 6,000,000
GBP 6,500,000
GBP 8,786,234
GBP 3,000,987
GBP 5,000,000
Incurred Losses
GBP 4,000,000
GBP 3,232,897
GBP 5,675,987
GBP 2,987,564
GBP 3,200,000
The Market Reform Lineslip
FISCAL AND REGULATORY
LINESLIP STRUCTURE
TAX PAYABLE BY
UNDERWRITER(S):
US
CLASSIFICATION:
LINESLIP EXAMPLE
Any premium taxes and charges payable by
Insurers from the premium paid to them e.g.
Australian Income Tax. Any premium taxes
and charges payable by the Insured in
addition to the premium which are collected or
administered by Insurers should be shown in
the “Taxes Payable by (Re)Insured and
Administered by Underwriters” heading of the
Contract Details section.
To be entered as appropriate – e.g. if Risk is
in US Dollars
TAX PAYABLE BY
UNDERWRITER(S):
None.
US
CLASSIFICATION:
Various as per each insurance bound.
NAIC CODES:
To
be
included
only
where
CLASSIFICATION is “US Reinsurance”.
US
NAIC CODES:
Various as per each insurance bound
RISK CODES:
These are allocated to the Lineslip by the
leading Lloyd’s syndicate so that the relevant
FDO signings can be completed.
RISK CODES:
Property – P3
Liability – UA
FSA CLIENT
CLASSIFICATION:
To be included on all business. There are 6
possible options, please refer to the Appendix
B of this document for further information.
FSA CLIENT
CLASSIFICATION
Various as per each insurance bound.
IS BUSINESS
SUBJECT TO
DISTANCE
MARKETING
DIRECTIVE?
This heading must be included if the FSA
Client Classification heading specifies "Retail"
or "Retail Exempt". If the FSA Client
Classification
heading
specifies
"Commercial", "Large Risk", “Group Risks" or
"Reinsurance" it should be omitted. Where it
appears the only applicable answers are
"Yes" or "No".
IS BUSINESS
SUBJECT TO
DISTANCE
MARKETING
DIRECTIVE?
Various as per each insurance bound.
Page 26 of 33
Market Reform Lineslip
APPENDIX B – FSA Client Classification Headings Defined
Classification
Retail
Retail Exempt
Commercial
Large Risk
Group Risks
Reinsurance
FSA Classification description
Dealing with a retail (private) customer acting outside of their
trade or profession. Includes sole trader/partnership, where
insurance includes elements of retail risk. [Includes private
large risks within EEA, see Large Risk]
Exempt insurance warranty risks relating to breakdown, loss
of, or damage to non-motor goods supplied, or travel
insurance for damage to, or loss of, baggage and other risks
linked to travel booked with a travel agent.
Dealing with a commercial customer
Dealing with a commercial customer (Marine, Aviation, or
Transport (MAT), Credit and Suretyship, or Property &
Liability risks (based on meeting two of the following criteria:balance sheet size of 6.2m euro, net turnover of 12.8m euro
or have more than 250 employees)). Excludes any large risk
insured in name of a retail customer.
A group policy sold to a customer (retail, commercial or large
risk) for the benefit of policyholders in relation to their
common employment occupation or activity where some or all
are capable of being a retail customer (with requirement to
provide a policy summary for policyholders, with policy
available on request)
Reinsurance worldwide.
Please note if the FSA Client Classification heading is completed “Retail” or “Retail Exempt” the
heading “Is Business Subject to Distance Marketing Directive?” must be included and answered
either “Yes” or “No”.
Page 27 of 33
Market Reform Lineslip
APPENDIX C – Expert Fees Collection
Context
As part of the market’s desire for flexibility in the way insurance contracts are processed, an
experts’ fees collection scheme has been previously agreed. This scheme allows affected parties
to choose a collection process best suited to the particular circumstances of the individual policy.
The Market Reform Lineslip includes a slip heading of “Expert(s) Fees Collection” within the
“Subscription Agreement” section. This is where the particular option chosen from the list below
must be recorded.
Options
The options must be selected from and agreed upon by Brokers and Insurers at the time of
placement along with any other qualifications or provisions deemed necessary by any of the
affected parties.
1. Named service provider to collect London market share only.
2. Named service provider to collect all slip security, including overseas.
3. Named service provider to collect only overseas percentages in conjunction with Option One
above.
4. Brokers to collect fees.
5. Broker to collect experts' fees, to be remunerated on a financial basis agreed between the
Insurers and Broker at time of placement.
6. Any other agreement that can be determined between affected parties at time of slip
placement.
N.B. The Slip Leader must ensure that any special fee bill collection arrangements with third party
service providers which the expert in question has in place are not prohibited or adversely affected
by the selection process above.
N.B. Where an option collects fees only in respect of just London or just overseas (Options 1 & 3)
and there are subscribing Insurers from both then more than one option must be specified.
Scope
The slip heading is available to record the necessary information on all Market Reform Lineslips.
The “Expert(s) Fees Collection” heading is optional on reinsurance business but due consideration
should be given to facultative reinsurances where claims control or co-operation clauses may exist
with fees payable by London reInsurers.
Page 28 of 33
Market Reform Lineslip
APPENDIX D – Hold Cover Provisions
Where the Agreement Parties have quoted a premium for a specific risk and have finalised
all contractual terms and conditions for that risk, OR where the Agreement parties have
quoted a premium for a specific risk and have finalised all contractual terms and
conditions for that risk and have required the London Market Broker to resolve a list of
pre-conditions, the Broker can confirm cover to the policyholder upon confirmation that the
pre-conditions have been met.
The Broker in such arrangements cannot vary:
A.
the premium or contractual terms and conditions quoted by the Agreement
Parties; and/or
B.
the pre-conditions.
For the avoidance of doubt where one or more of the Agreement Parties for each
insurance bound have set a pre-condition for the supply of information pertaining to the
contract within a defined time period, then that agreement party may at the time of setting
that pre-condition, permit the Broker to extend that defined time period by a reasonable
amount of time. Any such permission extended to the Broker must be stated on the
declaration slip and it is recommended that a maximum period of extension is shown.
Page 29 of 33
Market Reform Lineslip
APPENDIX E – Line Conditions
The Contract Certainty Code of Practice requires Insurers to phase out the practice of
applying Stamp and Line Conditions. A Stamp Condition is defined as one which is built
into an Insurers stamp and therefore appears on every risk to which that stamp is applied
by that Insurer. A Line Condition is defined as one manually applied by Insurers on a case
by case basis against their written line.
This appendix identifies how some of the more common Line Conditions should be
managed.
Table 1 lists those Line Conditions that compromise Contract Certainty and should not be
used.
Table 2 lists those Line Conditions that should not be used as provisions are made in the
body of the slip.
Table 3 lists risk specific Line Conditions which are acceptable as they cannot be readily
catered for in the slip. Please note that these risk specific Line Conditions cannot be
stated as Stamp Conditions.
Table 1: Line Conditions that if used breach Contract Certainty requirements
LINE Condition
REASON FOR PROHIBITION
Wording to be agreed
Contract Certainty requires wordings to be agreed before the Insurer formally commits
to the contract.
All signing instructions other
than “lines to stand”
All other signing instructions are imprecise and therefore ambiguous, e.g. X% to sign
Y%.
Table 2: Line Conditions provided for in either Contract Details or Subscription Agreement
sections and not the Security Details section
LINE
Condition
All terms
conditions,
amendments,
deletions,
special
acceptances
and
endorsements
to be agreed
Intended Effect
Guidance
The Insurer
wants to agree all
endorsements,
changes to terms
and conditions
and special
acceptances, etc
Insurers wishing to agree all endorsements for their own proportion should insert
“XYZ Insurer to agree all terms conditions, amendments, deletions and
endorsements” under the heading BASIS OF AGREEMENT TO LINESLIP
CHANGES.
Warranted
premium
payable within
60 days of
inception
Condition in
relation to the
payment of the
premium,
warranting that it
be paid within 60
days of inception.
Notification of the
expected
premium
payment date.
This is a premium payment term and should be clearly expressed in the
CONTRACT DETAILS section under the “PAYMENT TERMS” heading.
SDD 14/11/05
N.B. The General Underwriter Agreement (GUA) does not apply to Lineslips.
The Settlement Due Date by which the Insurers wish to receive their premium or
the due date of the 1st instalment if the premium is on a deferred basis should be
stated under the Settlement Due Date heading in the SUBSCRIPTION
AGREEMENT section.
Page 30 of 33
Market Reform Lineslip
LINE
Condition
Excluding Hull
War
Claims
Handling
Authority
delegated to
XCS
Each
underwriter to
the extent of
several liability
All claims to be
agreed
Notify
cancellation at
anniversary
date
Intended Effect
Guidance
Marine exclusion
condition of loss,
damage, liability
or expense
arising from war
to a ship hull.
A condition
providing for XCS
to agree claims
on behalf of the
slip leader.
A condition
ensuring that
each Insurer is
liable only for
their amount of
risk (Limited
Liability).
A condition
mandating that a
particular carrier
wants to agree all
claims.
This is a condition to the contract and must be stated under the “Conditions of
Each Insurance Bound” heading in the CONTRACT DETAILS section of each
insurance bound.
A provision
commonly found
in contracts of
insurance for
more than a year,
and permits
either party to
serve notice of
cancellation at
the anniversary
date, thereby
effectively
reducing the
security of such a
contract to that of
a single year and
enabling parties
to renegotiate for
a subsequent
year.
N.B. Not permitted for use on a Lineslip
The RULES AND EXTENT OF ANY OTHER DELEGATED CLAIMS AUTHORITY
heading in the SUBSCRIPTION AGREEMENT section provides for this claims
handling arrangement.
The several liability notice LSW1001 must be stated under the SEVERAL
LIABILITY heading in the CONTRACT DETAILS section to ensure that all parties
to the contract are fully aware of the notice.
Insurers wishing to agree all claims should insert their name under the CLAIMS
AGREEMENT PARTIES heading in the SUBSCRIPTION AGREEMENT section.
N.B. – Lloyd’s syndicates must be mindful of the terms of the Lloyd’s Claims
Scheme 2006 before adding their name as a Claims Agreement Party. Only the
first participating Lloyd’s Insurer (and optionally the second in respect of special
category claims) may agree claims.
This is because it is not permitted for use on any slip by Lloyd’s managing
agents. Nor is it permitted for use by non-Lloyd’s Insurers unless that
contract is continuous and no Lineslip may continue for more than 18
months.
Table 3: Acceptable Line Conditions
lINE Condition
Intended Effect
REASON FOR RETENTION
Line to stand
A condition to ensure that a
line stays as it is written and is
not signed down.
A condition imposed by the
carrier where they will not
provide Letters of Credit and
Outstanding Claims
Advances.
A recognised and acceptable line condition.
Excluding Letters of Credit and
Outstanding Claims Advances
(may relate additionally, or only, to
incurred but not reported (IBNR)
claims)
Page 31 of 33
Risk specific heading particular to reinsurance
business and not catered for in the slip.
Market Reform Lineslip
APPENDIX F – Unique Market Reference Guidance
The UMR must be stated in the Contract Details section in the correct format:
(i)
(ii)
(iii)
(iv)
(v)
All UMRs must start “B” which must be followed by the Lloyd’s Broker
number. If the Broker number is three digits long it should be prefixed by a
zero. If the Broker number is “123” your UMR would therefore start
“B0123”. If the Broker has a four digit Broker number such as “4567” it
would be “B4567”.
After the Broker number up to 12 alphanumeric characters must be
provided. There is no prescribed standard for this, although most Brokers
tend to use their policy number.
The UMR as a whole must be unique. This means that when a contract is
renewed it cannot keep the same UMR.
The UMR must not contain any spaces, hyphens, slashes or other
punctuation. Only numbers 0-9 and letters A-Z may be used.
The UMR is not case sensitive. Whether it is provided as upper case or
lower case, many of the systems and current EDI messages used in the
market will convert it to upper case.
In respect of mid term market changes, where the handling Broker changes,
the new Broker must keep and use the old Broker’s UMR. When the contract
renews the handling Broker can amend the UMR.
Page 32 of 33
Market Reform Lineslip
APPENDIX G – Guide to Order Hereon
This appendix explains how orders may be expressed in the Market Reform Lineslip.
CIRCUMSTANCES
OLD PANEL ONE NOTATION
EXAMPLE A –
PERCENTAGE OF WHOLE
Written Lines
Client A gives the Broker a
100% order and they are the
only Broker involved in the
placement.
EXAMPLE B –
PERCENTAGE OF ORDER
Client B gives the Broker a
50% order and decides to self
insure the rest.
%
Part
Of
Order
Whole
MARKET REFORM LINESLIP NOTATION
Order
100%
Closed for
100%
ORDER HEREON: 50% of 100%
BASIS OF WRITTEN LINES: Percentage of order
Written Lines
%
Part
Of
Order
Whole
Order
50%
Closed for
100% of 50%
EXAMPLE C – PART OF
WHOLE
Client C gives a Broker
monetary order of GBP 100
where the total sum insured
was GBP 200. Lines are
written as a monetary amount
as part of the total sum
insured. Signed lines are
shown as part of the sum
insured.
ORDER HEREON: 100% of 100%
BASIS OF WRITTEN LINES: Percentage of Whole
ORDER HEREON: 50% of GBP 200
BASIS OF WRITTEN LINES: Part of whole
Written Lines
%
Part
Of
Order
Whole
Order
GBP 100
Closed for
50% of
GBP 200
Page 33 of 33