Lloyd's Market Association Bulletin

LMA16-006-AC  |  14 January 2016       

Consumer Wordings Guidance v2.0


Following its launch in the Lloyd’s Old Library, the LMA first published the Joint LMA/Clyde & Co Guidance on Consumer Wordings (v1.0) on 27 April 2015.

At the time of its initial publication, we advised that the guidance would undergo a periodic review process by the LMA and, therefore, remain subject to amendment/update when required (e.g. due to change/update in relevant legislation/regulation etc). The LMA re-published the guidance on 27 July 2015 (v1.1) following the publication of the LMA’s Guidance on the Insurance Act 2015.

The LMA has now updated the guidance again (v2.0) to reflect:  
  • guidance on the effects of the Consumer Rights Act 2015 (which came into effect on 01 October 2015)
  • an update to the Statutory Status Disclosure
  • an update on the jurisdictional reach of the FCA
  • clarification regarding cooling off periods
  • the Lloyd’s updated Consumer Complaints Procedures.
The latest version of the guidance is available to download from the LMA website, and contains a Document Revision/Change History page to identify the amendments/updates.

Consumer Wordings Guidance v2.0

The document is published as general guidance, intended to assist managing agents with the practicalities of drafting new consumer products and/or adapting existing commercial wordings to produce consumer versions. Whilst not an exhaustive list of all the issues to consider, the guidance identifies the key features of, and salient clauses within, a policy document/wording that need to be addressed for a consumer policy to meet current regulatory requirements and identifies, where appropriate, the applicable underlying regulation. Example clauses are also provided, where applicable.

Any queries on the guidance may be addressed to:

Lloyd's Market Association Clyde & Co LLP 

 
Alison Colver  Ian Plumley 
Manager, Wordings Partner
Email: alison.colver@lmalloyds.com Email: ian.plumley@clydeco.com
   
Steve Morrell Sian Purath 
Manager, Legal and Compliance
Associate 
Email: steve.morrell@lmalloyds.com Email: sian.purath@clydeco.com

Alison Colver

Manager, Wordings