The LMA Wordings Committee met to review the development of model wordings and discuss relevant regulatory developments. The committee discussed the published Facultative Certificate Endorsement. An alternative ‘order of priority’ version was requested and will be drafted. Updates were shared on the UK SME Property/BI policy, Bilateral Cancellation Clause (with revisions reverting to the existing position) and the General Sanctions Financial Crime Documentation Clause, which was being revised following feedback from external counsel. 

The committee discussed the LMA5020, NMA1998 and LMA5021 clauses. Amendments included removing ‘general appearance’ language and usage guidance. Updated versions (LMA5020A (Lloyd’s only capacity/LMA5020B (mixed market capacity), NMA1998A, and LMA5021A) will be published and the originals withdrawn. Regarding the Property (Digital Assets) Bill, the Committee agreed no changes to LMA wordings would be made until the Bill passes into law. 

New clauses under review included a model territorial exclusion for Russia, Ukraine and Belarus for the Terrorism & Violence market, and two Limited Computer System Failure Endorsements (LMA5591A and LMA5592A). Feedback was provided, and revisions were underway. The committee also discussed the LMA5593 Terrorism Extension Endorsement and the definition of ‘terrorism’ within exclusions. 

Under AOB, the committee endorsed ‘Project Spring Clean’, a review of older wordings on the LWR, prioritising those from 2010 and earlier. Other items included an amended version of LMA5400, Indian collateralised reinsurance clauses, a model Italian Nat Cat clause and the LMA’s response to the Environment Agency’s consultation on civil sanctions under the Environment Act 2021.