The Market Reform Slip
June 2006
Page 1 of 44
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8
9.
Introduction .......................................................................................................... 3
Scope ................................................................................................................... 3
Out of Scope ........................................................................................................ 3
The Franchise Board Mandate ............................................................................. 3
Enforcing & monitoring the use of the slip ............................................................ 4
Variations to the Slip ............................................................................................ 4
Structure of the Slip .............................................................................................. 5
7.1
Panel 1 removal......................................................................................... 5
7.2
General ...................................................................................................... 7
7.3
Risk Details Section ................................................................................... 7
7.4
Subscription Agreement Section ............................................................... 7
7.5
Fiscal and Regulatory Section ................................................................... 7
7.6
Security Details Section ............................................................................. 8
Slip Headings per section..................................................................................... 8
8.1
Risk Details – All classes of business........................................................ 8
8.2
Risk Details Section – Type of business specific ....................................... 9
8.3
Subscription Agreement Section - All Slips ............................................... 9
8.4
Information Section - All Slips .................................................................. 10
8.5
Fiscal & Regulatory Section-All Slips....................................................... 10
Further Information ............................................................................................. 10
Appendix A:
Appendix B:
Appendix C:
Appendix D:
Appendix E:
Appendix F:
Appendix G:
Appendix H
Slip Headings Defined
An Example of a Compliant Non-Marine Direct Slip
FSA Client Classification definitions
Expert Fees Collection
Stamp/Line Conditions
UMR Guidance
Model Signing Provisions
Guide to Order Hereon
11
19
36
37
38
41
42
44
The Market Reform Slip June 2006
1.
Introduction
The LMP slip was introduced in October 2001 and was mandated by the Lloyd’s
Franchise Board for business incepting from the 2nd January 2004. This Market Reform
Slip June 2006 replaces the LMP April 2005 slip. 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 slip 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 slip for open market business
and defines the business that falls within the scope of the Lloyd’s Franchise Board
mandate. This document has been agreed by the Market Reform Group.
2.
Scope
The Market Reform Slip should be used for the following:


All firm quote and firm order open market insurance and reinsurance business placed
by London Market Brokers where the contract falls within the definition of London
Market contracts as specified in the Contract Certainty Code of Practice issued by the
MRG.
All Marine open cargo covers and declarations attaching thereto. Marine open cargo
covers are defined as those risks where the insured has, or is expected to acquire, an
insurable interest in each declaration bound.
All Declarations or offslips attaching to lineslips and applicable declarations off limited
binding authority agreements.
N.B. The Market Reform Slip may be used for indicative quotes.
3.
Out of Scope
The Market Reform Slip must not be used for:


Binding Authorities as these have separate guidelinesRefer to http://www.marketreform.co.uk/Binding_pubs1.htm
Lineslips as these have separate guidelinesRefer to http://www.marketreform.co.uk/LMP_lineslip.htm
Slips that fall within the Market Reform Slip Exempt – Client Requirement category
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
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 –
(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 –
Page 3 of 44
The Market Reform Slip June 2006
(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 slip has been
completed in accordance with the relevant slip guidelines from time to time issued by
the MRG.
5.
Enforcing & monitoring the use of the slip
The Market Reform Programme Office (MRPO), in co-operation with the LMBC, the IUA
and the LMA, is in continuous dialogue with firms about common causes of the deficiency
in quality, with the aim of providing education and guidance to improve market standards.
Individual feedback sessions are held between the MRPO slip audit team and carriers and
Brokers. Reports specific to the carrier or Broker are prepared for each feedback session,
highlighting the common errors on slips with details given on how to improve slip quality
and appropriate remedial actions. To arrange an individual feedback session for your
organisation please contact James.willison@lmpoffice.com.
On-site slip checking at the respective carrier is also carried out by the audit team to
provide quality feedback and on-site training sessions.
In order to communicate progress to the market, the MRPO publishes monthly reports on
Slip quality based on the checks conducted by the MRPO slip audit team.
6.
Variations to the Slip
The following are valid variations to the slip as incorporated into this document:
6.1 The order of slip headings in the RISK DETAILS section is not fixed.
6.2 Some slips will be based on policy forms that do not use the standard slip headings.
As an example the policy form could include a heading called Name of Client rather
than Insured. In these instances it is a requirement that the term used in the policy
form be also used in the slip in order to aid contract certainty.
6.3 There will be contract specific slip headings that will need to be incorporated into the
slip to allow for any unusual or additional RISK DETAILS as deemed necessary.
Page 4 of 44
The Market Reform Slip June 2006
7.
Structure of the Slip
Previous versions of the slip consisted of three distinct panels of information namely:Panel 1
Panel 2
-
Panel 3
-
Data Form for bureau processing
Four separate sections called RISK 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 Slips. To simplify the structure of the
remaining slip the concepts of panels has been dropped and there are now five distinct
sections. What was called Panel 3 now becomes the SECURITY DETAILS section. This
structure is shown in the diagram below.
OLD LMP SLIP STRUCTURE
PANEL
1
MARKET REFORM SLIP STRUCTURE
PANEL
3
PANEL 2
(RISK DETAILS)
(RISK DETAILS)
SUBSCRIPTION AGREEMENT
SUBSCRIPTION AGREEMENT
INFORMATION
INFORMATION
FISCAL & REGULATORY
FISCAL & REGULATORY
SECURITY DETAILS
Some contracts have previously required additional Panel 1 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 slip headings.
Data that is required and will be captured in new/additional headings within the
body of the slip; and
Data that is obsolete.
A:
Incorporate data in existing slips headings
Current Panel 1 Data
Items
Risk code
Assured/Reassured
Account
Gross Premium
Already Captured Under
Heading Name
Slip section
Allocation of Premium to Coding
Fiscal and Regulatory
Insured or Reinsured
Risk Details
Premium
Risk Details
Page 5 of 44
The Market Reform Slip June 2006
B:
Incorporate data in new/additional slips headings
Current Panel 1 Data
Items
Unique Market
Reference
Written Lines
Order/ Closed For
Settlement Due Date
Overseas Broker
DEF
ADJ
Country of origin
C:
Now Becomes
Heading Name
Slip section
Unique Market Reference
Risk Details
Basis of Written Lines
Subscription Agreement
Order Hereon
Settlement Due Date
Overseas Broker
(Deferred Premium Period Of
Credit)
(Adjustment Premium Period Of
Credit)
Country of origin
Risk Details
Subscription Agreement
Fiscal and Regulatory
Subscription Agreement
Subscription Agreement
Fiscal and Regulatory
Obsolete Panel 1 data
Current Panel One Data Item
Policy Number
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
Bureau Scheme Number
Bureau Signed line shares
Reference Number
Reason why data is obsolete
The Unique Market Reference (UMR) is a superior
reference since it gives both the Policy number and the
Lloyd’s Broker number and the UMR is now part of RISK
DETAILS.
This information was an unnecessary repetition of the
currency of the premium already shown in the slip.
Slip Registration scheme no longer active.
XIS have been granted access to the Binding Authority
Registration System and can now locate these
references in the application.
The tribunal is long since disbanded.
Xchanging will monitor all final adjustments thus does not
need to be specified on a risk by risk basis.
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 Claims Payable abroad (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 same information can be found in the Security
Details section of the slip.
Majority of Brokers never use it and those that do have
confirmed they do not need it in the slip.
Page 6 of 44
The Market Reform Slip June 2006
7.2




7.3




7.4

7.5

General
There are five separate sections called RISK DETAILS, SUBSCRIPTION
AGREEMENT, INFORMATION, FISCAL & REGULATORY and SECURITY DETAILS.
The inclusion of the Risk Details heading in the slip is optional, not the content. The
other four headings must be included.
There are standard headings within the Risk Details, 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 slip 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 slip 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
Insurer formally commits to the contract.
Risk Details Section
During placing the Broker and Insurers must ensure that the slip clearly states all the
contract terms, specifies the terms and language to be used in the Evidence of Cover
issued to the client, references or attaches all Registered Wording and Registered
Clauses where used and attaches all bespoke and non-Registered Wording and nonRegistered Clauses in full. (Note - National Laws (e.g. Marine Insurance Act 1906;
German General Rules of Marine Insurance; etc) do not need to be attached in full, as
they are in common usage and freely available to all interested parties).
A slip can include subjectivities which are/will be outstanding at inception.
Subjectivities should be imposed within the slip under the SUBJECTIVITES heading in
the Risk Details section. They must not be recorded against insurers’ lines in the
Security Details section. All subjectivities imposed by insurers must specify the
responsibilities and timescales for resolution and the consequences of failure.
Standard slip 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
slips and has been moved to the Risk Details section. Model signing provisions should
be used where possible to provide certainty of signed lines at inception. Any variation
of signed lines resulting from these signing provisions will need to be the subject of
documented agreement of the (re)insured and all affected (re)insurers. The use of
instructions “line to stand” or equivalent is valid. The use of any other signing
instructions, e.g. “X% to sign Y%” leads to ambiguity and should be discontinued.
Subscription Agreement Section
Insurers must not delete the Subscription Agreement section of the slip 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.
Fiscal and Regulatory Section
Additional headings have been incorporated in the Fiscal and Regulatory section to
align the Market Reform Slip with the ACORD global placing document.
Page 7 of 44
The Market Reform Slip June 2006
7.6




Security Details Section
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.
The Contract Certainty Code of Practice requires insurers to phase out the use of
stamp conditions and accordingly these should be phased out during the
implementation period of the Market Reform Slip. Such 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 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 slip can be
found in Appendix A.
8
Slip Headings per section
8.1
Risk Details – All classes of business
1. The headings in the table below apply to all Market Reform Slips for all classes of
business.
2. ** indicates a heading where the slip heading used may differ in order to align with
the policy form used.
3. The use of () around a slip heading indicates an optional heading.
MANDATORY HEADINGS FOR ALL SLIPS
SLIP HEADING
NOTES
UMR
(Attaching to delegated underwriting
contract number)
Type
Insured or Reinsured
Period or Period and Cancellation
Provisions or Voyage
Sum Insured or Limits or Limits and
Retentions/deductibles or Treaty Detail
or Treaty Limits
Order Hereon
Conditions
(Notices)
(Express Warranties)
(Conditions Precedent)
(Subjectivities)
Several Liability
Choice of Law & Jurisdiction
Premium or Rate
Payment Terms
Brokerage
Other Deductions from Premium
Taxes payable by (Re) Insured and
administered by Underwriters
(Recording, Transmitting & Storing
Information)
Signing Provisions
Where applicable – Can be omitted if none exist
**
**
**
**
Where applicable – Can be omitted if none exist
Where applicable – Can be omitted if none exist
Where applicable – Can be omitted if none exist
Can be omitted if none exist
**
**
Where applicable – Can be omitted if none exist
Page 8 of 44
The Market Reform Slip June 2006
8.2
Risk Details Section – Type of business specific
NON-MANDATORY HEADINGS BY TYPE OF BUSINESS
Other headings can be included if required
Direct &
Direct & Facultative R/I
Excess of Loss Treaty Non-Marine /
Facultative R/I
Marine
Aviation
Non-Marine
Form
Form
Form
Vessels or Conveyance
Interest
Class of Business (& any Exclusions)
Situation
Interest
Territorial Scope
Trading
Reinstatement Provisions
Wording
Co-Reinsurance Warranty
Loss Reserve & Interest
Excess of
Loss Treaty
Marine
Form
Interest & any
Exclusions
Reinstatement
Provisions
NON-MANDATORY HEADINGS BY TYPE OF BUSINESS
Other headings can be included if required
Proportional Treaty
Proportional Treaty
All Declarations,
Marine
insurance and
Non-Marine /
reinsurance off
Aviation
Lineslips
Form
Interest & any Exclusions
Attaching to delegated
underwriting contract
number
Class of Business &
Wording
any Exclusions
Territorial Scope
Premium Reserve &
Interest
Commission or
Overriding
Commission
Profit Commission
Premium Reserve &
Interest
Loss Reserves & Interest
Loss Reserve &
Interest
Accounts
Cash Loss Limit
Bordereaux
Portfolio
8.3
Subscription Agreement Section - All Slips
MANDATORY HEADINGS FOR ALL SLIPS
SLIP HEADING
NOTES
Slip Leader
Settlement Due Date
Basis of Written Lines
(Deferred Premium Period of
Where premium is to be paid via bureau deferred scheme
Credit)
(Adjustment Premium Period of Where applicable
Credit)
(Other Agreement Parties for
Must only be present if the GUA is used
Contract Changes, if any)
Basis of Agreement to Contract
Changes
Document Production
Claims Agreement Parties
Basis of Claims Agreement
Claims Administration
Rules and Extent of any other
Delegated Claims Authority
Page 9 of 44
The Market Reform Slip June 2006
(Experts Fees Collection)
Bureaux Arrangements
(Non-Bureaux Arrangements)
8.4
Where applicable
Information Section - All Slips
SLIP HEADING
Information
8.5
Optional on Reinsurance risks if none exist
MANDATORY HEADINGS FOR ALL SLIPS
NOTES
Fiscal & Regulatory Section-All Slips
MANDATORY HEADINGS FOR ALL SLIPS
SLIP HEADING
NOTES
Tax Payable by Underwriters
Country of Origin
Overseas Broker
To be entered as appropriate
(Surplus Lines Broker)
To be entered as appropriate
(State of Filing)
To be entered as appropriate
(Licence Information )
To be entered as appropriate
(US Classification)
(NAIC Codes)
Allocation of Premium to
Coding
(Allocation of Premium to year
of account)
FSA Client Classification
(Is business subject to distance
marketing directive?)
9.
To be entered only if premium is in US Dollars
To be included only if Risk is US Reinsurance
To be entered as appropriate
To be specified if FSA Client Classification is specified as
Retail or Retail Exempt
Further Information
For further information on the Market Reform Slip please contact:
Type of Query
General
Queries
Brokers
Lloyd’s
Insurers
IUA Insurers
Contact
James Willison – Market Reform
Programme Office
Tel: 020 7327 5231
Fax: 020 7327 5887
Email: james.willison@lmpoffice.com
Mark Barwick – LMBC
Tel: 020 7397 0207
Fax: 020 7626 0564
Email: mark.barwick@lmbc.co.uk
Allison Goddard- LMA
Tel: 020 7327 4872
Fax: 020 7623 9390
Email: allison.goddard@lloyds.com
John Hobbs – IUA
Tel: 020 7617 4445
Fax: 020 7617 4440
Email: john.hobbs@iua.co.uk
Page 10 of 44
Address
Gallery 6
Lloyd’s
1 Lime Street
LONDON
BIBA House
14 Bevis Marks
LONDON
Suite 1085
Lloyd’s
1 Lime Street
LONDON
Suite LG1
LUC
3 Minster Court
LONDON
APPENDIX A – Slip headings defined
The following headings must be present for all Market Reform slips for all classes of business. Use of the () indicates that if no details are to be entered
under that slip heading then it can be omitted.
Risk Details Section – All Classes
HEADING
UNIQUE MARKET REFERENCE:
(ATTACHING TO DELEGATED
UNDERWRITING CONTRACT
NUMBER):
TYPE:
INSURED: OR REINSURED:
PERIOD: OR PERIOD AND
CANCELLATION PROVISIONS: OR
VOYAGE:
DEFINITION
This reference can be incorporated as a separate heading or as a header on each page of the slip. 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.
This heading is applicable to all declarations off line slips, marine open cargo covers and limited binding authorities that
are shown to insurers. This heading should specify the unique market reference to which the declaration in question
attaches
This heading must incorporate details of the type of Contract e.g. Marine Hull.
The (re)insured’s name, and where appropriate their address and/or business.
The inception date and time of day, expiry date and time of day as well as the applicable time zone. As an alternative to
specifying both times it is acceptable to specify “both days inclusive”, although the applicable time zone is still required.
Where the risk is for a continuous contract the anniversary date is to be included in place of the expiry date, please note
that the applicable time zone is still required.
However for risks where specific dates of inception or expiry are not known, for example voyages, constructions and
sporting events, the specific events determining the period must be stated.
On proportional treaty business where the heading Period and Cancellation Provisions is used cancellation provisions, if
any, must be stated including reference to what happens to business in force at cancellation, if applicable, and whether
there is any option for either party in this respect.
SUM INSURED: OR LIMITS: OR
LIMITS AND
RETENTIONS/DEDUCTIBLES: OR
TREATY DETAIL: OR TREATY
LIMITS:
ORDER HEREON:
CONDITIONS:
On Risks Attaching During contracts it is acceptable to state “any time zone”.
Sum insured or reinsured or indemnity or monetary limits.
The heading Order hereon must detail the Slip closings i.e. whether the signed lines are percentages of the whole or
percentages of the slips 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 H for
guidance on correct completion.
Identification, qualification or variation in coverage including the wording, clauses, conditions and amendments to any
clauses in basic form. The slip must reference or attach all registered wordings and registered clauses. All nonregistered wordings and non –registered clauses must be attached in full.
Page 11 of 44
APPENDIX A – Slip headings defined
HEADING
(NOTICES):
(EXPRESS WARRANTIES):
(CONDITIONS PRECEDENT):
(SUBJECTIVITIES):
SEVERAL LIABILITY:
CHOICE OF LAW & JURISDICTION:
PREMIUM: OR RATE:
PAYMENT TERMS:
FEE PAYABLE BY CLIENT?
(TOTAL BROKERAGE)
(RETAIL BROKERAGE)
(WHOLESALE BROKERAGE)
OTHER DEDUCTIONS FROM
PREMIUM:
TAXES PAYABLE BY (RE)
INSURED AND ADMINISTERED BY
UNDERWRITERS:
(RECORDING, TRANSMITTING &
STORING INFORMATION):
DEFINITION
An optional heading where any notices other than Several Liability Notice must be recorded. E.g. Lloyd’s privacy
statement, LSW 1135 B.
Any express warranties that apply to the contract, 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 noncompliance. If there are no express warranties this heading would not be included.
Any conditions precedent that apply to the contract, 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.
A slip can include subjectivities for example an outstanding survey requirement. Subjectivities must be imposed within
the slip, in the Risk Details section and must not be shown in the Security Details section against insurers’ lines. All
subjectivities should set out the condition/action that needs to occur, by whom and to what standard; the applicable
timescale within which the condition is to met; the terms which are to apply until the condition is met; and the
consequences which are to follow if the condition is not met. If a subjectivity is outstanding at inception then it
must be stated as a fully claused condition of the coverage given in the slip and relevant evidence of cover
issued.
The several liability notice that applies. This must be either the insurance or reinsurance version of LSW1001, and must
be included in full on all slips to ensure the (re)insured is fully aware of the notice.
The court that will have jurisdiction in the event of a dispute between insured and insurers and the law that will apply.
Further Lloyd’s information on this heading is available in Lloyd’s bulletins Y3406 Y3327,and for LMA members letter
LTM04-056-WFR.
The premium to be paid by the insured. Premiums in respect of War coverage must be identified separately to
premiums in respect of other insured perils. Any premium instalment information must be shown here and not under the
Payment Terms heading.
The Premium Payment Terms applied to the contract by the Slip Leader, including Premium Payment Warranties and/or
Conditions. The Settlement Due Date must be shown under the Settlement Due Date heading and not here.
The Broker should specify whether the client is paying a fee to them. This should be a simple “Yes” or “No” answer.
The total brokerage allowance. Should the Broker and insurer agree it is appropriate to separate total brokerage into
separate retail and wholesale amounts they must use the ‘Retail Brokerage’ and ‘Wholesale Brokerage’ headings.
The amount of brokerage being earned by the retail Broker. This heading must only be used in conjunction with the
‘Wholesale Brokerage’ heading.
The amount of brokerage bring earned by the wholesale Broker. This heading must only be used in conjunction with the
‘Retail Brokerage’ heading.
Any additional deductions in monetary amount or a percentage from premium due to insurers e.g. administration fees,
sundry payments, etc.
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 e.g. UK Insurance Premium Tax. Any premium taxes and charges payable by Insurers
must be shown in the Fiscal & Regulatory section. If no taxes payable, state none – do not leaving heading blank.
Details of procedures for storage of data, documents and other information in relation to Data Protection Act.
Page 12 of 44
APPENDIX A – Slip headings defined
HEADING
SIGNING
PROVISIONS:
DEFINITION
Slips must contain a signing provision. Model signing provisions are contained in Appendix G to implement the signing
principles already agreed for contract certainty.
Additional Risk Details Headings – Direct & Facultative R/I (Non-Marine)
HEADING
(FORM):
INTEREST:
SITUATION:
DEFINITION
The NMA reference or other identification of the policy jacket. The wording or clauses should not be shown here, these
should be included in the Conditions heading.
Interest or subject matter insured or nature of liability.
Situation, territorial limits or location.
Additional Risk Details Headings – Direct & Facultative R/I (Marine)
HEADING
(FORM):
VESSELS: OR CONVEYANCE:
INTEREST:
TRADING:
DEFINITION
The MAR reference or other identification of the policy jacket. The wording or clauses should not be shown here, these
should be included in the ‘Conditions’ heading.
Name of vessel/conveyance.
Interest or subject matter insured or nature of liability.
Territorial or trading limits or trading warranties.
Additional Risk Details Headings – Excess of Loss Treaty (Non-Marine / Aviation)
HEADING
(FORM)
CLASS OF BUSINESS & ANY
EXCLUSIONS:
TERRITORIAL SCOPE:
REINSTATEMENT PROVISIONS:
CO-REINSURANCE WARRANTY:
LOSS RESERVE & INTEREST:
DEFINITION
The J(a) reference or other identification of the policy jacket. The wording or clauses should not be shown here, these
should be included in the ‘Conditions’ heading.
The Classes of business covered by the treaty followed by any specific exclusions.
The Territorial Scope.
Provisions for any Reinstatement, including Limit and Additional Premium applicable.
Any Co-Reinsurance warranty to be specified
Any loss reserve and applicable interest thereon to be specified.
Page 13 of 44
APPENDIX A – Slip headings defined
Additional Risk Details Headings – Excess of Loss Treaty (Marine)
HEADING
INTEREST & ANY EXCLUSIONS:
REINSTATEMENT PROVISIONS:
FORM:
DEFINITION
The interest and any exclusions. The nature of the interest must appear first followed by specific exclusions, so that it is
immediately apparent which is which.
Provisions for any reinstatement including limit and additional premium applicable.
The MAR reference or other identification of the policy jacket. The wording or clauses should not be shown here, these
should be included in the ‘Conditions’ heading.
Additional Risk Details Headings – Proportional Treaty (Non-Marine / Aviation)
HEADING
FORM
CLASS OF BUSINESS & ANY
EXCLUSIONS:
TERRITORIAL SCOPE:
COMMISSION OR OVERRIDING
COMMISSION:
PROFIT COMMISSION:
PREMIUM RESERVE & INTEREST:
LOSS RESERVE & INTEREST:
PORTFOLIO:
CASH LOSS LIMIT:
ACCOUNTS:
DEFINITION
The J(a) reference or other identification of the policy jacket. The wording or clauses should not be shown here, these
should be included in the ‘Conditions’ heading.
Classes of Business must appear first followed by the exclusions separated by a space, so that it is immediately
apparent which is which.
The territorial scope.
The percentage amount of commission needs to be inserted but where it is other than this a clear indication is required.
The percentage amount of profit commission allowed and the percentage for reinsurers’ expenses must be entered first
under this heading. Following this must be provision, if any, for deficit carry forwards and the basis of calculation. If
there is no deficit carry forward this must be made clear.
If the interest is not a per annum basis this must be stated.
If the interest is not a per annum basis this must be stated.
For original portfolios between the reassured and reinsurers. Premium and / or loss portfolios to be assumed or
returned must be entered showing the basis of calculation e.g. in the case of premiums whether it is the actual
unearned or a percentage of the previous twelve months written premiums etc, and in the case of losses whether it is
the actual outstanding losses or a percentage thereof. It must also be shown whether the premium portfolio is subject
to deduction of commission etc and whether it is to be treated as cash or reserve.
Insert amount.
Indicate the periods at which accounts are to be rendered and also any provisions for bordereaux or other documents
necessary to show on a slip.
Additional Risk Details Headings – Proportional Treaty (Marine)
HEADING
INTEREST & ANY EXCLUSIONS:
PREMIUM RESERVE & INTEREST:
LOSS RESERVES & INTEREST:
CASH LOSS LIMIT:
BORDEREAUX:
DEFINITION
The interest insured and the exclusions must be shown but the nature of the account must appear first followed by the
exclusions, separated by a space, so that it is immediately apparent which is which.
If the interest is not a per annum basis this must be stated.
If interest is not on a per annum basis this must be stated.
The amount and proportion of the treaty to which it is applicable.
Indicate the intervals at which provisional or definite bordereaux are to be rendered.
Page 14 of 44
APPENDIX A – Slip headings defined
HEADING
ACCOUNTS:
COMMISSION: OR OVERRIDING
COMMISSION:
PROFIT COMMISSION:
DEFINITION
Indicate the period at which accounts to be rendered.
The percentage amount of commission needs to be inserted but where it is other than this a clear indication is required.
The percentage amount of profit commission allowed and the percentage for reinsurers’ expenses must first be
entered. Following this must be provision, if any, for deficit carry forwards and the basis of calculation. If there is no
deficit carry forward this must be made clear.
Subscription Agreement – All Classes
SLIP HEADING
SLIP LEADER:
SETTLEMENT DUE DATE:
BASIS OF WRITTEN LINES:
(DEFERRED PREMIUM PERIOD
OF CREDIT):
(ADJUSTMENT PREMIUM PERIOD
OF CREDIT):
(OTHER AGREEMENT PARTIES
FOR CONTRACT
CHANGES, IF ANY):
BASIS OF
AGREEMENT
TO CONTRACT
CHANGES:
DEFINITION
State who is the Slip Leader. If this is known when the slip is produced it must be added by the Broker. If it is not known
when the slip is produced the Slip Leader inserts their company/ syndicate name and number 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 slip it is possible to annotate the right hand side of the slip with the headings
OVERALL SLIP LEADER and LONDON MARKET SLIP LEADER. In such cases subsequent provisions will need to be
specific in the Subscription Agreement with regard to any leading underwriter agreements or slip leader provisions.
The Settlement Due Date refers to the date (day, month and year) 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. Please note that the date shown here is a
term of trade and not a policy condition such as a “Premium payment warranty” or a “Premium payment condition”.
These must continue to be shown under the Payment terms heading in the Risk Details section. The location of the
SDD in this section of the slip does not confer any change in legal effect of the SDD or the implications of noncompliance.
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)
Specify the number of days added to the client due dates of subsequent instalments. Please note that this heading is
only mandatory where premium is to be paid via the bureau deferred scheme.
Specify the number of days after expiry Insurers expect the final adjustment of premium (if any) to be paid.
State those Insurers, other than the Slip Leader, who will agree contract changes on behalf of the subscribing Insurers
in accordance with the terms agreed below. This must not include those Insurers who wish to agree contract changes
on their own behalf. N.B. Care must be taken to avoid conflict with leading underwriter agreements. This
heading must therefore only be used when the GUA is being utilised.
Specify any leading underwriter agreement that applies, e.g. NMA, LUAMC, GUA and applicable class of business
schedule(s) etc.
For classes of business where it is market practice, or where specified in the GUA schedule, to list a copy of agreed
endorsements to the following market, the method/media should be specified here e.g. email, link to repositories, etc.
Page 15 of 44
APPENDIX A – Slip headings defined
SLIP HEADING
DOCUMENT PRODUCTION:
DEFINITION
The type(s) of evidence of cover to be produced, who produces it and any particular requirements e.g. any requirement
for an insurer approved policy.
The appropriate evidence of cover including security must be issued with 30 days of inception. It is a requirement of
contract certainty that 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 Placing Slip
 Evidence of Cover to be provided by "Broker company name" in the form of a Brokers Insurance Document
 Evidence of Cover to be issued by "Broker company name" in the form of a certificate (binding authority
declarations only)
CLAIMS AGREEMENT PARTIES
BASIS OF CLAIMS AGREEMENT:
CLAIMS ADMINISTRATION:
RULES AND EXTENT OF ANY
OTHER DELEGATED CLAIMS
AUTHORITY:
(EXPERT(S) FEES COLLECTION)
BUREAUX ARRANGEMENTS:
(NON-BUREAUX
ARRANGEMENTS):
Further guidance regarding insurer approved policies will be issued shortly on this subject.
Identification of the claims agreement parties e.g. Slip Leader, plus the first IUA company and Xchanging Claims
Services. N.B. The 2006 Lloyd’s Claims Scheme requires XCS to agree all claims where there is more than one
subscribing managing agent (Lloyd’s), other than in the case of special category claims where the second Insurer may
optionally act on their own and XCS acts on behalf of the remaining following syndicates.
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 on slip.
All claims related information with the exception of identification of agreement parties and the basis of claims
agreement must be included here. Clarification is required as to which Insurers will use CLASS and the use of email
and/or access to repositories.
If any of the claims agreement parties specified above have delegated their claims processing and agreement to any
other party this must 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 claims agreement parties must incorporate details as necessary.
The party(ies) responsible for the collection of experts fees. There are six options available under the experts fees
collection arrangements. These options can be found in Appendix D. N.B. this heading is optional on Reinsurance
business.
Any specific arrangements relating to the bureaux including administrative arrangements for premium settlement,
delinked accounting, and policy signing or basis of policy agreement clauses.
To be used as appropriate to record any specific provisions relating to insurers outside of the bureau.
Page 16 of 44
APPENDIX A – Slip headings defined
Information – All Classes
Slip Heading
INFORMATION:
DEFINITION
Details of any information provided to Insurers to support the assessment of the risk at the time of placement. Where
the information is appropriate for inclusion in the slip it should be shown here. Where the size or format of the
information is not suitable for inclusion it should be clearly referenced in this section and should be made available to
all Insurers during placing.
Fiscal & Regulatory – All Classes
Slip Heading
TAX PAYABLE BY
UNDERWRITER(S):
COUNTRY OF ORIGIN
OVERSEAS BROKER:
(SURPLUS LINE BROKER):
(STATE OF FILING):
(LICENCE INFORMATION):
(US CLASSIFICATION):
(NAIC CODES):
ALLOCATION OF
PREMIUM TO CODING:
(ALLOCATION OF PREMIUM TO
YEAR OF ACCOUNT):
FSA CLIENT CLASSIFICATION:
DEFINITION
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 must be shown in the Taxes Payable by (Re) Insured and Administered by Underwriters heading of the Risk
Details.
Where the demand for the insurance comes from. This equates to the country of origin of the (re)insured.
Details of the overseas intermediary must be completed here where one exists. Where more than one exists this
should show the next intermediary Broker in the placing chain. If no overseas agents are involved then this heading
should specify “Direct Insured”.
The name, surplus lines licence number and state of the US intermediary which is responsible for completing the
Surplus lines filing, if any. The full address may optionally be shown. Refer to Lloyd’s Bulletin Y3768.
The state in which the filings are made needs to be specified. This heading must be completed on all slips that have a
US Classification of US Surplus Lines.
The country, state or province to which a risk will be reported against for regulatory reporting under Lloyd’s licences.
The country of risk is as defined by the country for regulatory or fiscal reporting purposes, as per definitions in the
Lloyd’s country manuals.
To be entered if premium is in US Dollars, irrespective of risk location. Only the following values should be entered:
 US Surplus Lines
 US Reinsurance
 Illinois licensed
 Kentucky licensed
 US Virgin Isles licensed
 Non Regulated
 Various
To be included only where risk is US Reinsurance.
The Lloyd’s risk code(s) allocated by the first participating Lloyd’s insurer specifying how the premium is to be allocated
and/or details of how the Leading Company would like the premium to be split for signing purposes
This heading is only required on contracts written by Lloyd’s syndicates where the period exceeds 18 months.
To be included on all business. There are 6 possible options, please refer to the Appendix C of this document for
further information.
Page 17 of 44
APPENDIX A – Slip headings defined
(IS THE BUSINESS SUBJECT TO
THE DISTANCE MARKETING
DIRECTIVE?):
This heading must be included if the Client Classification heading specifies Retail or Retail Exempt. If the Client
Classification heading specifies Commercial, Large Risk, Group Risks or Reinsurance it must be omitted. Where it
appears the only applicable answers are Yes or No.
Page 18 of 44
APPENDIX B - Example of compliant non-marine direct slip
RISK DETAILS
SLIP STRUCTURE
SLIP EXAMPLE
UNIQUE MARKET This reference can be incorporated as a
separate heading or as a header on each page
REFERENCE:
UNIQUE MARKET B012308540HG78
REFERENCE:
of the slip. 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.
ATTACHING TO
DELEGATED
UNDERWRITING
CONTRACT
NUMBER:
TYPE:
FORM:
**INSURED:
This heading is applicable to all declarations off
line slips, marine open cargo covers and limited
binding authorities that are shown to insurers.
This heading should specify the unique market
reference to which the declaration in question
attaches
This heading must incorporate details of the
type of Contract e.g. Marine Hull.
TYPE:
The NMA reference or other identification of the
policy jacket. The wording or clauses should not
be shown here, these should be included in the
Conditions heading.
FORM:
The (re)insured’s name, and where appropriate
their address and/or business.
INSURED:
Non Marine Generic Example Open Market Slip
J (NMA 2420)
Page 19 of 44
XYZ Ltd
123 Wickley Road
London
United Kingdom
L20 1MP
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
**PERIOD:
SLIP EXAMPLE
The inception date and time of day, expiry date
and time of day as well as the applicable time
zone. As an alternative to specifying both times
of day it is acceptable to specify both days
inclusive, although the applicable time zone is
still required.
PERIOD:
From: 1st July 2006 GMT
To: 30th June 2007 GMT
Both days inclusive.
Where the risk is for a continuous contract the
Anniversary date is to be included in place of the
Expiry date, please note that the applicable time
zone is still required.
However for risks 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.
On Proportional treaty business where the
heading Period and Cancellation Provisions is
used cancellation provisions, if any, must be
stated including reference to what happens to
business in force at cancellation, if applicable,
and whether there is any option for either party
in this respect.
On Risks Attaching During contracts it is
acceptable to state “any time zone”.
INTEREST:
Interest or subject matter insured or nature
of liability.
INTEREST:
(Non-marine generic example).
**SUM INSURED:
Sum insured or reinsured or indemnity or
monetary limits.
SUM INSURED:
GBP XX,XXX,XXX
Page 20 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP EXAMPLE
ORDER HEREON:
The heading Order hereon must detail the slip
closings i.e. whether the signed lines are
percentages of the whole or percentages of the
slips 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 H for guidance on
correct completion.
ORDER HEREON:
100% of 100%.
SITUATION:
Situation, territorial limits or location.
SITUATION:
123 Wickley Road
London
United Kingdom
L20 1MP
CONDITIONS:
XXX wording as attached.
LSW 1175 Nuclear/Chemical/ Biological terrorism
Exclusion clause
LSW 1145 Lloyd’s alternative disputes clause
CONDITIONS:
Identification, qualification or variation in
coverage including the wording, clauses,
conditions and amendments to any clauses in
basic form. The slip must reference or attach all
registered wordings and registered clauses. All
non-registered wordings and non –registered
Clauses must be stated in full and attached in
full.
NOTICES:
An optional heading where any notices other
than Several Liability Notice must be recorded.
E.g. Lloyd’s privacy statement LSW 1135 B.
NOTICES:
Lloyd's Privacy Statement LSW1135B
EXPRESS
WARRANTIES:
Any express warranties that apply to the
contract, 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:
(To be inserted if any).
Page 21 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
CONDITIONS
PRECEDENT:
SUBJECTIVITIES:
SLIP EXAMPLE
Any conditions precedent that apply to the
contract, 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:
A slip can include subjectivities for example an
outstanding survey requirement. Subjectivities
must be imposed within the slip in the Risk
Details section and must not be shown in the
Security Details section against Insurers’ lines.
All subjectivities should set out the
condition/action that needs to occur, by whom
and to what standard; the applicable timescale
within which the condition is to met; the terms
which are to apply until the condition is met; and
the consequences which are to follow if the
condition is not met.
SUBJECTIVITIES:
(To be inserted if any).
(To be inserted if any).
.
If a subjectivity is outstanding at inception
then it must be stated as a fully claused
condition of the coverage given in the slip
and relevant evidence of cover issued.
Page 22 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP EXAMPLE
SEVERAL
LIABILITY:
The several liability notice that applies. This
must be either the insurance or reinsurance
version of LSW1001, and must be included in
full on all slips to ensure the (re)insured is fully
aware of the notice.
SEVERAL
LIABILITY:
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.
CHOICE OF LAW &
JURISDICTION:
The court that will have jurisdiction in the event
of a dispute between insured and insurers and
the law that will apply. Further Lloyd’s
information on this heading is available in
Lloyd’s bulletin Y3406 and Y3327 and for LMA
members letter LTM04-056-WFR.
The premium to be paid by the insured.
Premiums in respect of War coverage must be
identified separately to premiums in respect of
other insured perils. Any premium instalment
information must be shown here and not under
the Payment Terms heading.
CHOICE OF LAW &
JURISDICTION:
This insurance shall be governed
by and construed in accordance with the law of
England and Wales and each party
agrees to submit to the exclusive jurisdiction of
the Courts of England and Wales.
PREMIUM:
GBP XX,XXX
The Premium Payment Terms applied to the
contract by the Slip Leader, including Premium
Payment Clauses, Warranties and Conditions.
The Settlement Due Date must be shown under
the Settlement Due Date heading and not here.
PAYMENT TERMS:
60 day premium payment condition – LSW3000.
**PREMIUM:
PAYMENT TERMS:
It is a matter for Broker and insurer to agree whether it is
appropriate to show the total brokerage or to split
brokerage under separate headings, e.g. retail and
wholesale brokerage (as shown below)
It is a matter for Broker and insurer to agree whether it is
appropriate to show the total brokerage or to split
brokerage under separate headings, e.g. retail and
wholesale brokerage (as shown below)
Page 23 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
FEE PAYABLE BY
CLIENT?
(TOTAL
BROKERAGE)
SLIP EXAMPLE
The Broker should specify whether the client is
paying a fee to them. This should be a simple
“Yes” or “No” answer.
The total brokerage allowance.
FEE PAYABLE BY
CLIENT?
No
TOTAL
BROKERAGE
XX%
OR
OR
FEE PAYABLE BY
CLIENT?
The Broker should specify whether the client is
paying a fee to them. This should be a simple
“Yes” or “No” answer.
FEE PAYABLE BY
CLIENT?
No
(RETAIL
BROKERAGE)
The amount of brokerage being earned by the
retail Broker. This heading must only be used in
conjunction with the ‘Wholesale Brokerage’
heading.
RETAIL
BROKERAGE
Y%
(WHOLESALE
BROKERAGE)
The amount of brokerage bring earned by the
wholesale Broker. This heading must only be
used in conjunction with the ‘Retail Brokerage’
heading.
WHOLESALE
BROKERAGE
Z%
OR
OR
Retail and wholesale brokerage may be combined into
one heading and any subscription market brokerage
shown as a separate field
Retail and wholesale brokerage may be combined into one
heading and any subscription market brokerage shown as a
separate field
OTHER
DEDUCTIONS
FROM PREMIUM:
Any additional deductions from premium e.g.
administration fees, sundry payments, etc.
OTHER
DEDUCTIONS
FROM PREMIUM:
Page 24 of 44
None.
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP EXAMPLE
**TAXES PAYABLE
BY INSURED AND
ADMINISTERED BY
UNDERWRITERS:
Any premium taxes and charges payable by the
insured in addition to the premium stated
above, which are collected and/or administered
by Insurers e.g. UK Insurance Premium Tax.
Any premium taxes and charges payable by
Insurers must be shown in the Fiscal &
Regulatory section. If no taxes payable, state
none – do not leaving heading blank
5% UK Insurance Premium Tax on Gross
TAXES PAYABLE
Premium.
BY INSURED AND
ADMINISTERED BY
UNDERWRITERS:
RECORDING,
TRANSMITTING &
STORING
INFORMATION:
Details of procedures for storage of data,
documents and other information in relation to
Data Protection Act.
RECORDING,
TRANSMITTING &
STORING
INFORMATION:
Page 25 of 44
Where the Broker maintains risk and claim
data/information/documents the Broker may hold
data/information/documents electronically.
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SIGNING
PROVISIONS:
SLIP EXAMPLE
Slips must contain a signing provision. Model
signing provisions are contained in Appendix G
to implement the signing principles already
agreed for contract certainty.
SIGNING
PROVISIONS:
In the event that the written lines hereon
exceed 100% of the order, any lines written
“to stand” will be allocated in full and all other
lines will be signed down in equal proportions
so that the aggregate signed lines are equal
to 100% of the order without further
agreement of any of the (re)insurers.
However:
a) in the event that the placement of the
order is not completed by the
commencement date of the period of
insurance then all lines written by that
date will be signed in full;
b) the signed lines resulting from the
application of the above provisions can be
varied, before or after the commencement
date of the period of insurance, by the
documented agreement of the (re)insured
and all (re)insurers whose lines are to be
varied. The variation to the contracts will
take effect only when all such (re)insurers
have agreed, with the resulting variation
in signed lines commencing from the date
set out in that agreement.
Page 26 of 44
APPENDIX B - Example of compliant non-marine direct slip
SUBSCRIPTION AGREEMENT
SLIP STRUCTURE
SLIP EXAMPLE
SLIP LEADER:
State who is the Slip Leader. If this is
known when the slip is produced it must be
added by the Broker. If it is not known when
the slip is produced the Slip Leader inserts
their company/ syndicate name and number
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 slip it is possible to
annotate the right hand side of the slip with
the headings OVERALL SLIP LEADER and
LONDON MARKET SLIP LEADER. In such
cases subsequent provisions will need to
be specific in the Subscription Agreement
with regard to any leading underwriter
agreements or slip leader provisions.
SLIP LEADER:
ABC Syndicate
SETTLEMENT DUE
DATE:
The date (day, month and year) 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. Please
note that the date shown here is a term of
trade and not a policy condition such as a
not a “Premium payment warranty” or a
“Premium payment condition”. These must
continue to be shown under the “Payment
terms” heading in the Risk Details section.
The location of the SDD in this section of
the slip does not confer any change in legal
effect of the SDD or the implications of noncompliance.
SETTLEMENT DUE
DATE:
1st September 2006
Page 27 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
BASIS OF
WRITTEN LINES:
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)
SLIP EXAMPLE
BASIS OF
WRITTEN LINES:
Percentage of Whole
DEFERRED
PREMIUM PERIOD
OF CREDIT:
Specify the number of days added to the
client due dates of subsequent
instalments. Please note that this heading
is only mandatory where premium is to be
paid via the bureau deferred scheme.
DEFERRED
PREMIUM PERIOD
OF CREDIT:
30 Days
ADJUSTMENT
PREMIUM PERIOD
OF CREDIT:
Specify the number of days after expiry
Insurers expect the final adjustment of
premium (if any) to be paid.
ADJUSTMENT
PREMIUM
PERIOD OF
CREDIT:
(To be inserted if any)
Page 28 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
OTHER
AGREEMENT
PARTIES FOR
CONTRACT
CHANGES, IF ANY:
State those Insurers, other than the Slip
Leader, who will agree contract changes
on behalf of the subscribing Insurers in
accordance with the terms agreed below.
This must not include those Insurers who
wish to agree contract changes on their
own behalf.
SLIP EXAMPLE
OTHER
AGREEMENT
PARTIES FOR
CONTRACT
CHANGES, IF ANY:
GHI Company Ltd
N.B. Care must be taken to avoid
conflict with leading underwriter
agreements. This heading must
therefore only be used when the GUA is
being utilised.
BASIS OF
AGREEMENT
TO CONTRACT
CHANGES:
Specify any leading underwriter agreement
that applies, e.g. NMA, LUAMC, GUA and
applicable class of business schedule(s)
etc.
BASIS OF
AGREEMENT
TO CONTRACT
CHANGES:
For classes of business where it is market
practice, or where specified in the GUA
schedule, to list a copy of agreed
endorsements to the following market, the
method/media should be specified here
e.g. email, link to repositories, etc.
Page 29 of 44
GUA (October 2001) with
Non-Marine Schedule (October 2001).
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
DOCUMENT
PRODUCTION:
The type(s) of evidence of cover to be
produced, who produces it, and any
particular
requirements
e.g.
any
requirement for an insurer approved policy.
SLIP EXAMPLE
DOCUMENT
PRODUCTION:
In addition an insurance policy authorised by
the insurer will be issued.
The appropriate evidence of cover
including details of security issued with 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 copy of this Placing Slip
 Evidence of Cover to be provided
by "Broker company name" in the
form of a Brokers Insurance
Document
 Evidence of Cover to be issued by
"Broker company name" in the form
of a certificate (binding authority
declarations only)
CLAIMS
AGREEMENT
PARTIES:
Identification of the claims agreement
parties e.g. Slip Leader, plus the first IUA
company and Xchanging Claims Services.
Evidence of Cover to be provided by XYZ
Insurance Brokers Ltd in the form of a Brokers
Insurance Document.
[please note further guidance will be issued on
this topic in due course]
CLAIMS
AGREEMENT
PARTIES:
Page 30 of 44
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 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.
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP 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 on slip.
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
must 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 insurer(s) to use
CLASS for claims agreement.
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 must be specified here including
any limits that may apply, e.g. all claims
less than GBP XXXX or experts fees GBP
XXXX.
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.
EXPERT(S) FEES
COLLECTION:
Xchanging Insure Services to collect fees for all
slip security, including overseas.
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.
EXPERT(S) FEES
COLLECTION:
The party(ies) responsible for the collection
of experts fees. There are six options
available under the experts fees collection
arrangements. These options can be found
in Appendix D. N.B. this heading is optional
on reinsurance business.
Page 31 of 44
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP EXAMPLE
BUREAUX
ARRANGEMENTS:
Any specific arrangements relating to the
bureaux including administrative
arrangements for premium settlement,
delinked accounting, and policy signing or
basis of policy agreement clauses.
BUREAUX
ARRANGEMENTS:
Delinked accounts to be presented by Broker to
Xchanging Ins-sure Services.
NON – BUREAUX
ARRANGEMENTS:
To be used as appropriate to record any
specific provisions relating to insurers
outside of the bureau.
NON – BUREAUX
ARRANGEMENTS:
(To be inserted if any).
Page 32 of 44
APPENDIX B - Example of compliant non-marine direct slip
INFORMATION
Details of any information provided to Insurers to support the
assessment of the risk at the time of placement. Where the
information is appropriate for inclusion in the slip it should be shown
here. Where the size or format of the information is not suitable for
inclusion it should be clearly referenced from this section and must
be made available to all Insurers during placing.
Loss History as advised to Broker at 1st June 2006:
Year
2001/02:
2002/03:
2003/04:
2004/05:
2005/06:
Loss Amount
Nil
Nil
GBP 3,000
Nil
GBP 8,000,000
Loss Event
None
None
Lightning
None
Explosion in fuel pipe
Presentation dated 1st June 2006 confirmed that sprinklers fully
operational.
Page 33 of 44
APPENDIX B - Example of compliant non-marine direct slip
FISCAL AND REGULATORY
SLIP STRUCTURE
SLIP EXAMPLE
TAX PAYABLE BY
UNDERWRITER(S):
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 and/or administered by Insurers
should be shown in the Taxes Payable by (Re)
Insured and administered by Underwriters heading
of the Risk Details.
TAX PAYABLE BY
UNDERWRITER(S):
COUNTRY OF ORIGIN:
Where the demand for the insurance comes from.
This equates to the country of origin of the (re)
insured.
COUNTRY OF ORIGIN:
United Kingdom
OVERSEAS BROKER:
Details of the overseas intermediary must be
completed here where one exists. Where more than
one exists this should show the next intermediary
Broker in the placing chain. If no overseas agents are
involved then this heading should specify “Direct
Insured”.
OVERSEAS BROKER:
Direct Insured
SURPLUS LINES
BROKER:
The name, surplus lines licence number and state of
the US intermediary which is responsible for
completing the Surplus lines filing, if any. The full
address may optionally be shown. Refer to Lloyd’s
Bulletin Y3768.
STATE OF FILING:
The state in which the filings are made needs to be
specified. This is usually the state of domicile of the
insured. Must be present on all slips that have a US
Classification of US Surplus Lines.
Page 34 of 44
None.
APPENDIX B - Example of compliant non-marine direct slip
SLIP STRUCTURE
SLIP EXAMPLE
LICENCE
INFORMATION:
The country, state or province to which a risk will be
reported against for regulatory reporting under
Lloyd’s licences. The country of risk is as defined by
the country for regulatory or fiscal reporting
purposes, as per definitions in the Lloyd’s country
manuals.
US CLASSIFICATION:
To be entered if premium is in US Dollars,
irrespective of risk location. Only the following values
should be entered:
 US Surplus Lines
 US Reinsurance
 Illinois licensed
 Kentucky licensed
 US Virgin Isles licensed
 Non Regulated
 Various
NAIC CODES:
To be included only risk is US Reinsurance
ALLOCATION OF
PREMIUM TO CODING:
The Lloyd’s risk code(s) allocated by the first
participating Lloyd’s insurer specifying how the
premium is to be allocated and/or details of how the
Leading Company would like the premium to be split
for signing purposes.
ALLOCATION OF
PREMIUM TO CODING:
ALLOCATION OF
PREMIUM TO YEAR OF
ACCOUNT:
This heading is only required for contracts written by
Lloyd’s syndicates where the period exceeds 18
months.
ALLOCATION OF
PREMIUM TO YEAR OF
ACCOUNT:
FSA CLIENT
CLASSIFICATION:
To be included on all business. There are 6 possible
options, please refer to the Appendix C of this
document for further information.
FSA CLIENT
CLASSIFICATION:
IS BUSINESS SUBJECT
TO DISTANCE
MARKETING
DIRECTIVE RULES?:
This heading must be included if the Client
Classification heading specifies Retail or Retail
Exempt. If the Client Classification heading specifies
Commercial, Large Risk, Group Risks or
Reinsurance it must be omitted. Where it appears
the only applicable answers are Yes or No.
Page 35 of 44
GS
(To be inserted if any).
Commercial.
APPENDIX C- FSA Client Classification
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 Rules? must be included and
answered either Yes or No.
Page 36 of 44
APPENDIX D- 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 agreed as one of the market reforms. This scheme
allows affected parties to choose a collection process best suited to the particular circumstances of
the individual policy. The Market Reform Slip 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 option(s) must be agreed 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.
2.
3.
4.
5.
A named service provider to collect London market share only.
A named service provider to collect all slip security, including overseas.
A named service provider to collect only overseas percentages.
Broker to collect fees.
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 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 relates to fee collection only in respect of just London or just overseas
markets (Options 1 & 3) and there are subscribing insurers from both markets then more than one
option must be specified.
Scope
The options for fee collection recorded in this document may be used with all London market slips.
If a Market Reform Slip is used then the slip heading will be available to record the necessary
information. If the slip is not produced to the above (market reform) structure then it is
recommended that a slip heading of Expert(s) Fees Collection be inserted to record this
information.
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 37 of 44
APPENDIX E: Line conditions
The Contract Certainty Code of Practice requires insurers to phase out the practice of applying
stamp 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:
Stamp conditions should be phased out during the implementation of the Market Reform Slip June
2006.
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%.
Page 38 of 44
APPENDIX E: Line conditions
Table 2: Line Conditions provided for in either Risk 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
Contracts written with a GUA



The Slip Leader will see all endorsements as a matter of course.
Agreement Parties specified under the heading OTHER
AGREEEMENT PARTIES FOR CONTRACT CHANGES, IF ANY will
see all Part 2 and Part 3 endorsements.
Followers 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 CONTRACT CHANGES”.
Contracts without a GUA
Warranted
premium
payable within
60 days of
inception
SDD 14/11/05
Excluding Hull
War
Claims
Handling
Authority
delegated to
XCS
Each Insurer to
the extent of
several liability
All claims to be
agreed
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.
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.
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 CONTRACT
CHANGES.
This is a premium payment term and should be clearly expressed in the Risk
Details section under the Payment Terms heading.
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.
This is a condition to the contract and must be stated under the Conditions
heading in the Risk Details section.
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 Risk Details section to ensure that the insured is 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.
Page 39 of 44
APPENDIX E: Line conditions
LINE
Condition
Notice of
cancellation at
anniversary
date
Intended Effect
Guidance
A provision
commonly found
in contracts of
insurance for
more than a year,
and permits the
insurer 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 by Lloyd’s managing agents.
If non-Lloyd’s insurers wish to apply this provision then they must:

ensure the contract is continuous

not use abbreviations, e.g. NCAD, and ensure that the necessary
elements are contained in a clearly worded condition

be satisfied that the provision has legal effect under the law specified
under LAW & JURISDICTION heading

record this under the CONDITIONS heading
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
(and/or for incurred but not
reported losses)
Page 40 of 44
Risk specific heading particular to reinsurance
business and not catered for in the slip.
APPENDIX F- Unique Market Reference Guidance
The UMR must be stated in the Risk Detail 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 41 of 44
APPENDIX G - Model Signing Provisions Guidance
1.1
Background
1.1.1 The Signed Lines Guidance issued in December 2005 established the following signing
principles:
 Wherever possible, the [signing down] calculation method should be explicit on the
submission, subject to client wishes, allowing the insurer to determine how their line will
be calculated.
 The Broker should obtain client instructions regarding signed lines prior to inception,
wherever possible.
 Any post-inception change(s) in signing must be agreed by all parties whose lines are
to be varied.
1.1.2 Model Signing Provisions can assist with the implementation of these principles and help to
provide certainty of signed lines at inception. This is important for clients, to confirm their security
and for (re)insurers, to confirm their participation and commitment of capital. It also clearly
establishes the proportion to be borne by each (re)insurer in the event of a loss.
1.1.3 The signing provisions contained in this guidance enable the signed lines for each contract
to be clearly determined at the conclusion of placement. Any subsequent variation of these signed
lines then requires the documented agreement of the (re)insured and all (re)insurers whose lines
are to be varied.
1.1.4 It is recommended that every contract should contain a clause which sets out the signing
provisions, to assist with certainty in this area. The Model Signing Provisions below have been
reviewed by leading counsel.
1.1.5 There are two versions of the Model Signing Provisions; one without a disproportionate
signing clause, and one that allows disproportionate signing before inception at the election of the
(re)insured. The Broker can select the appropriate version to use on the slip, taking account of the
(re)insured’s requirements. The model clauses are not mandatory and (re)insureds, Brokers and
(re)insurers may make additions, deletions or amendments.
1.2
(Re)insurer signing instructions
1.2.1 The Market Reform Group (MRG), supported by the opinion of leading counsel,
recommends that the use of all insurer signing instructions other than “line to stand” should be
discontinued. For example, the use of (re)insurer signing instructions such as X% to sign Y%”
should be discontinued, as their meaning may be unclear and compromise contract certainty.
1.2.2 If the lines written by (re)insurers “to stand” should exceed 100% of the order, then opinion
obtained from leading counsel suggests that the agreement of (re)insurers would be required to
vary these lines. In the event of a disproportionate signing, priority should be given to any intended
variation of lines written “to stand”.
Page 42 of 44
APPENDIX G - Model Signing Provisions Guidance
2.
Model Signing Provisions
2.1
Without Disproportionate Signing
SIGNING PROVISIONS
In the event that the written lines hereon exceed 100% of the order, any lines written “to stand” will
be allocated in full and all other lines will be signed down in equal proportions so that the
aggregate signed lines are equal to 100% of the order without further agreement of any of the
(re)insurers.
However:
a)
in the event that the placement of the order is not completed by the commencement date of
the period of insurance then all lines written by that date will be signed in full;
b)
the signed lines resulting from the application of the above provisions can be varied, before
or after the commencement date of the period of insurance, by the documented agreement of the
(re)insured and all (re)insurers whose lines are to be varied. The variation to the contracts will
take effect only when all such (re)insurers have agreed, with the resulting variation in signed lines
commencing from the date set out in that agreement.
2.2
With Disproportionate Signing
SIGNING PROVISIONS
In the event that the written lines hereon exceed 100% of the order, any lines written “to stand” will
be allocated in full and all other lines will be signed down in equal proportions so that the
aggregate signed lines are equal to 100% of the order without further agreement of any of the
(re)insurers.
However:
a)
in the event that the placement of the order is not completed by the commencement date of
the period of insurance then all lines written by that date will be signed in full;
b)
the (re)insured may elect for the disproportionate signing of (re)insurers’ lines, without
further specific agreement of (re)insurers, providing that any such variation is made prior to the
commencement date of the period of insurance, and that lines written “to stand” may not be varied
without the documented agreement of those (re)insurers;
c)
the signed lines resulting from the application of the above provisions can be varied, before
or after the commencement date of the period of insurance, by the documented agreement of the
(re)insured and all (re)insurers whose lines are to be varied. The variation to the contracts will
take effect only when all such (re)insurers have agreed, with the resulting variation in signed lines
commencing from the date set out in that agreement.
Page 43 of 44
APPENDIX H - Model Signing Provisions Guidance
This appendix explains how orders must be expressed in the Market Reform Slip. Part of Order should not be used.
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 SLIP 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 GPB 100
where the total sum insured
was GPB200. 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 GPB200
BASIS OF WRITTEN LINES: Part of whole
Written Lines
%
Part
Of
Order
Whole
Order
GBP 100
Closed for
50% of
GBP 200
Page 44 of 44