Lloyd's Market Association Bulletin
LMA20-008-AC | 18 February 2020
New Service of Suit and Jurisdiction Clauses for Lloyd’s Brussels
In December 2019, Lloyd’s Insurance Company S.A. (Lloyd’s Brussels) produced two new Service of Suit clauses and Jurisdiction Clauses for use on Lloyd’s Brussels business. The purpose of the two clauses is to give the market greater clarity as to their use in relation to other dispute resolution arrangements in an insurance contract.
LBS006A - Service of Suit and Jurisdiction Clause: This clause replaced LBS0006. The use of LBS0006A is strongly recommended where a managing agent – acting on behalf of Lloyd’s Brussels – has appointed a nominee (which may be a law firm, insurance intermediary or a third-party administrator) to receive service of suit.
LBS0081 - Service of Suit and Jurisdiction Clause: The use of LBS0081 is strongly recommended where the managing agent (and therefore Lloyd’s Brussels) has not appointed a nominee (i.e. has not appointed a third party such as a law firm, insurance intermediary or a third-party administrator) to receive service of suit. Notice is therefore to be sent to either Lloyd’s Brussels Head Office or Lloyd’s Brussels’ General Representative in the country concerned, depending on whether or not Lloyd’s Brussels holds a freedom of establishment licence in that country:
- Where Lloyd’s Insurance Company S.A. does hold a freedom of establishment licence in a country and no nominee is chosen by the managing agent, proceedings are to be served to Lloyd’s Insurance Company S.A.’s General Representative for that specific territory.
- Where Lloyd’s Insurance Company S.A. does not hold a freedom of establishment licence in a country and no nominee is chosen by the managing agent, proceedings are to be served to Lloyd’s Insurance Company S.A.’s Head Office.
Both clauses are available on the Lloyd’s Wordings Repository, along with translations into various European languages.
It remains mandatory for all Lloyd’s Insurance Company S.A. contracts to contain an appropriate service of suit clause in order to ensure that any legal action is properly served.
For more detail regarding service of suit requirements within any EEA territory, reference should be made to the relevant country page on Crystal.
Any queries on the above may addressed to the LMA, to: Alison Colver on 020 7327 8370 or by email at alison.colver@lmalloyds.com Linda Cook on 020 7327 8385 or by email linda.cook@lmalloyds.com.
Alison Colver
Head of Contract Wordings