Lloyd's Market Association Bulletin

LMA15-057-AG |  22 October 2015
           

Market Reform Contract (Master Policies) Guidance - Version 1.0

Members are advised that London Market Group (LMG) in conjunction with the the LMA's Binding Authority Wordings Committee has produced a new Market Reform Contract (MRC) standard for Master/Group Policies:


The LMA has also produced the following documents to assist managing agents in adopting the MRC standard:
The model General Terms and Conditions set out a number of provisions that can be adopted by managing agents and which address the administration of the Master/Group Policy by the Master/Group Policyholder.

The model Evidence of Insurance provides a suggested format for the evidence of cover to be provided by Master/Group Policyholders to Covered Parties.

The model wordings are intended to provide managing agents with wordings that may be suitable in many cases. However, managing agents will need to consider in each case what wording should be adopted having regard to the commercial terms agreed with the Master/Group Policyholder as well as the applicable legal and regulatory requirements of the relevant jurisdiction. Therefore, in many cases the parties may wish to modify or adopt a different wording. 

The new MRC can be used immediately but may also be phased in over a four month period. It will become the required standard for new and renewal business from 01 April 2016. 

Members can access further information regarding Master/Group Policies which is available on: 
Crystal tool at www.lloyds.com/crystal 
Code of Practice – Delegated Underwriting: www.lloyds.com/coverholders 

All MRC publications can be found at www.londonmarketgroup.co.uk

Any queries on the above should be addressed to either: Adrian Graham, LMA (adrian.graham@lmalloyds.com) or Alison Colver, LMA (alison.colver@lmalloyds.com). 

Other contacts: London Market Group:
Chris Buer Tel: 020 7327 5199 (chris.buer@lloyds.com
LIIBA: Mark Knight Tel : 020 7280 0153 (mark.knight@liiba.co.uk).


Adrian Graham
Senior Executive, Underwriting