Relinquishment of US Admitted Licences – US General Coverholder Conditions

In July 2020, Lloyd’s announced that it would be relinquishing its admitted licences in Kentucky, Illinois and the US Virgin Islands (USVI), as detailed in Market Bulletin Y5324.

As a result, the LMA US General Coverholder Conditions clause (LMA5058C) has been amended to reflect that no new admitted business can be written after 1 July 2021 in Kentucky and Illinois, and no new admitted business can be written after 01 January 2022 in USVI. However, existing risks may be renewed up until 31 December 2021 in Kentucky and Illinois, and 31 December 2023 in USVI. As such, LMA5058C does not need to be endorsed onto existing binders in Illinois or Kentucky until 31 December 2021 (or 31 December 2023 for USVI) unless doing so for commercial reasons.

As with all LMA model clauses, this clause is purely illustrative and is distributed for the guidance of LMA members, who are free to agree to different conditions or amend as they see fit. The clause is available on the Lloyd’s Wordings Repository (LWR), which can be accessed via www.lloydswordings.com.

Craig Hart
Executive, Technical Underwriting