|
Update to Twin Binding Authority MRC
Update to Twin Binding Authority MRC
The LMA has drafted an update to the Twin Binding Authority MRC (refer to LMA18-046-TH for details), which has been published as LMA3113AT-A. The Twin Binding Authority MRC is designed to ensure that only one schedule needs be drafted for coverholders writing across EU and non-EU locations.
The update is designed to align the LMA3113A with the updated LBS0001A (published in March 2019). In order to do this, it is necessary to also include the LMA5346A SATS Reporting Endorsement in tandem with the LMA3113A. The structure of the agreements would therefore be as follows:
If managing agents do not wish to include the changes made by including LMA5346A, it is still possible to place a separate Binding Authority and Coverholder Appointment Agreements. However, managing agents should consider the potential impact to coverholders on divergent requirements and reporting channels in making this decision.
Further guidance on the use of the Twin schedule is provided in the MRC Guidance (Binding Authority) Brussels Supplementary Addendum. All of the requirements laid out in both the LBS0001A & LMA3113A, and the guidance documents thereto, will still apply.
Both LMA3113AT-A and LMA5346A are available on the Lloyd's Wordings Repository.
Should you have any queries in relation to the use of LMA3113AT-A, please contact Alison Colver.
Alison Colver
Head of Contract Wordings
|