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Appendix 2 – MRC Examples
The following pages show examples of the content of an MRC compliant placing document.

The examples provided are for Non-Marine Property risks (US and global) and illustrate what
compliant placing documents could look like, but the specific content will vary by territory and
class of business.

These examples are provided to illustrate the general usage of MRC headings. The clauses
contained therein are not necessarily compliant with legislation in all locations and should not be
used as a model for compliance with all overseas regulatory requirements.

Items in italics are for information only and should not be shown in a real contract

THE CONTRACT DOCUMENT

(A front page or “wrapper” may be added by the broker. Irrespective of whether such a page is
used, the first page below will always be page one of the contract)

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US EXAMPLE:
Heading
Risk Details Reference

UNIQUE MARKET B0999ABC123456789 A1

REFERENCE :

TYPE: All Risks of Direct Physical Loss or Damage including A2

Boiler Explosion and Machinery Breakdown insurance.

INSURED: XXXX American Inc. A3

ADDRESS: Number 1, Big Boulevard, Olympia, Washington (WA)

99999, USA

PERIOD: Effective from: 1 January YYYY at 12:01pm Pacific A4

Standard Time
To: 1 January YYYY at 12:01pm Pacific Standard Time

INTEREST: Real and Personal Property at the offices of the insured A5

in USA (Washington) including the additional coverages
defined below:

Personal Property of the Insured’s Officials and

Employees while on the Premises of the Insured
Improvements and Betterments
Business Interruption (Net Profits and / or Fixed
Charges)
Ordinary Payroll
Rental Value / Rental Income
Electronic Data Processing Equipment and Machinery

and as fully defined in the contract wording and clauses

referenced herein.

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LIMITS: USD 10,000,000 any one occurrence and in the annual A6
aggregate in respect of Flood and Earthquake separately

Program Sublimits schedule:

Earthquake: USD 2,000,000 any one occurrence and in the

annual aggregate

Flood: USD 2,000,000 any one occurrence and in the annual

aggregate

Boiler & Machinery: USD 2,000,000 any one accident

Program Deductibles schedule:

Each claim for loss or damage shall be subject to a combined

Property Damage and Time Element deductible as follows:

Earthquake / Windstorm / Flood: USD 2,000

All other perils except for the above: USD 1,000

INSURED’S 20% of 100%

RETENTION:

SITUATION: Offices of the insured in the USA. A7

CONDITIONS: (Any bespoke wording or clauses will be included under this A8

heading, whereas model or registered wordings or clauses can
be referred to by reference as per the following example)

XYZ Insurer – Primary Property wording CPROP192 – dated

January 2005
NMA 2914 (Amended Perils) Electronic Data Endorsement A
(Section two sub-limit USD10,000,000)
LMA 5019 Asbestos Endorsement
NMA 2962 Biological or Chemical Materials Exclusion
NMA 1168 Small Additional or Return Premium Clause (U.S.A)
LMA 9011 TRIA Notice
LSW 3001 Premium Payment Clause

LOSS PAYEE: XXXX Inc. Number 2 Boulevard, Olympia, Washington (WA)

99999, USA

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SUBJECTIVITIES: The Insured shall provide to the Insurer a property survey
report on the insured addresses such report to be
prepared by MNO Surveyors (“the Survey”). The Survey
shall be so provided by 12:01p.m. Pacific Standard Time
on 31 January YYYY (“the Survey Deadline”).
Between inception and the Survey Deadline, cover is
provided by the Insurer on the terms and conditions
specified in the contract to which this condition is attached
(“the Contract Terms”).
Where the Survey is not submitted to the Insurer by the
Survey Deadline, cover shall terminate at the Survey
Deadline.
Where the Survey is submitted to the Insurer by the
Survey Deadline, cover shall continue from the Survey
Deadline on the Contract Terms until expiry of the period
of the contract unless and until terminated in accordance
with the following paragraph.
In the event that the Survey is unsatisfactory to the
Insurer, the Insurer shall have the right, within 14 days of
its receipt, to terminate the contract by serving not less
than 14 days notice in writing to the Insured at its address
shown in the contract, such notice expiring no earlier than
the Survey Deadline.
In the event of termination under this survey condition, the
Insured shall be entitled to pro rata return of premium for
the unexpired period of the contract unless a loss has
arisen for which the Insured seeks indemnity under this
contract in which case the Insurers shall remain entitled to
the premium specified in the Contract Terms.
To the extent that this survey condition conflicts with any
other cancellation, notice and premium provision in the
Contract Terms, this survey condition shall prevail.

CHOICE OF This insurance shall be governed by and construed in A10

LAW AND accordance with the Revised Code of Washington (RCW).
JURISDICTION: Each party agrees to submit to the exclusive jurisdiction of
any competent court within the United States of America.

NMA 1998 (24/04/86) Service of Suit Clause:

A.N.O. Attorneys (or their Nominees)
211 Main St
Olympia
Washington (WA) 99999, USA

PREMIUM: USD 1,000,000 (100%) Annual A11

Plus:
USD 50,000 (100%) Annual in respect of TRIA
Plus:
USD 10,000 (100%) Annual in respect of Non-Certified
Terrorism

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PAGE X OF Y

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PREMIUM 60 Day Payment condition – LSW 3001 Premium A1
PAYMENT TERMS: Payment Clause 2

TAXES PAYABLE None applicable A1

BY INSURED AND 3
ADMINISTERED (For all taxation headings, where there are a large
BY INSURER(S): number of locations and/or taxes applicable then it
may be more practical to provide the tax information
in an attached spreadsheet/tax schedule, which
may then be referenced here.
The tax position for the contract/policy must always
be clear on the insurance documentation.)

RECORDING, Where Broker XYZ maintains risk and claim A1

TRANSMITTING & data/information/documents Broker XYZ may hold 5
STORING data/information/documents electronically.
INFORMATION:

INSURER (An insurer may specify here any insurer contract A1

CONTRACT documentation requirements that apply to them. e.g. 6
DOCUMENTATION: need for a policy, or policy endorsements, including
the policy form to be used.)

This document details the contract terms entered

into by the insurer(s), and constitutes the contract
document.

This contract is subject to US state surplus lines

requirements. It is the responsibility of the surplus
lines broker to affix a surplus lines notice to the
contract document before it is provided to the
insured. In the event that the surplus lines notice is
not affixed to the contract document the insured
should contact the surplus lines broker.

Any further documentation changing this contract,

agreed in accordance with the contract change
provisions set out in this contract, shall form the
evidence of such change

NOTICE OF Where (re)insurers have the right to give notice of A1

CANCELLATION cancellation, in accordance with the provisions of 8
PROVISIONS: the contract, then:

To the extent provided by the contract, the Slip

Leader is authorised to issue such notice on behalf
of all participating (re)insurers; and (optionally)

Any (re)insurer may issue such notice in respect of

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 its own participation.

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 The content and format of any such notice should be in
accordance with the ‘Notice of Cancellation’ standard, as
published by the London Market Group (LMG), or their successor
body, on behalf of London Market Associations and participants.
However failure to comply with this standard will not affect the
validity of the notice given.

The notice shall be provided to the broker by the following means:

By an electronic message, to the ACORD standard agreed by

market bodies, delivered to the XYZ system, (as defined by the
relevant broker); or

By an email to [email protected] and

[email protected] ; or

By an email to [email protected] .

Failure to comply with this delivery requirement will make the

notice null and void. Satisfactory delivery of the notice will cause it
to be effective irrespective of whether the broker has
acknowledged receipt.

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Information
The following information was provided to insurer(s) to support the assessment of the risk at the
time of underwriting.

Client submission dated November YYYY prepared by Producer Inc and seen by all participants
hereon and held on file by Broker XYZ Ltd

No losses past five years

EFG Burglar alarm system installed at all locations

ABC Sprinkler system installed at Olympia, Washington (WA) 99999 location

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Security Details

INSURER’S (This clause LMA3333 should be provided in full and not simply C1
LIABILITY: referenced.)

LMA3333

(Re)insurer’s liability several not joint

The liability of a (re)insurer under this contract is several and not
joint with other (re)insurers party to this contract. A (re)insurer is
liable only for the proportion of liability it has underwritten. A
(re)insurer is not jointly liable for the proportion of liability
underwritten by any other (re)insurer. Nor is a (re)insurer
otherwise responsible for any liability of any other (re)insurer that
may underwrite this contract.

The proportion of liability under this contract underwritten by a

(re)insurer (or, in the case of a Lloyd’s syndicate, the total of the
proportions underwritten by all the members of the syndicate
taken together) is shown next to its stamp. This is subject always
to the provision concerning “signing” below.

In the case of a Lloyd’s syndicate, each member of the syndicate

(rather than the syndicate itself) is a (re)insurer. Each member
has underwritten a proportion of the total shown for the syndicate
(that total itself being the total of the proportions underwritten by
all the members of the syndicate taken together). The liability of
each member of the syndicate is several and not joint with other
members. A member is liable only for that member’s proportion. A
member is not jointly liable for any other member’s proportion.
Nor is any member otherwise responsible for any liability of any
other (re)insurer that may underwrite this contract. The business
address of each member is Lloyd’s, One Lime Street, London
EC3M 7HA. The identity of each member of a Lloyd’s syndicate
and their respective proportion may be obtained by writing to
Market Services, Lloyd’s, at the above address.

Proportion of liability
Unless there is “signing” (see below), the proportion of liability
under this contract underwritten by each (re)insurer (or, in the
case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together)
is shown next to its stamp and is referred to as its “written line”.

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 Where this contract permits, written lines, or certain written lines,
may be adjusted (“signed”). In that case a schedule is to be
appended to this contract to show the definitive proportion of
liability under this contract underwritten by each (re)insurer (or, in
the case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together).
A definitive proportion (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed line”.
The signed lines shown in the schedule will prevail over the
written lines unless a proven error in calculation has occurred.

Although reference is made at various points in this clause to “this

contract” in the singular, where the circumstances so require this
should be read as a reference to contracts in the plural.

ORDER HEREON: 80% of 100% C2

BASIS OF C3
WRITTEN LINES: Percentage of whole

SIGNING In the event that the written lines hereon exceed 100% of the C5
PROVISIONS: order, any lines written “to stand” will be allocated in full and all
other lines will be signed down in equal proportions so that the
aggregate signed lines are equal to 100% of the order without
further agreement of any of the insurers.

However:

a) in the event that the placement of the order is not

completed by the commencement date of the period of
insurance then all lines written by that date will be signed in
full;

b) the signed lines resulting from the application of the above

provisions can be varied, before or after the
commencement date of the period of insurance, by the
documented agreement of the insured and all insurers
whose lines are to be varied. The variation to the contracts
will take effect only when all such insurers have agreed,
with the resulting variation in signed lines commencing from
the date set out in that agreement.

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 WRITTEN C6
LINES:

In a co-insurance placement, following (re)insurers may, but are not obliged to, follow the
premium charged by the slip leader.

(Re)insurers may not seek to guarantee for themselves terms as favourable as those which
others subsequently achieve during the placement.

(The above text is recommended for use, directly under the Written Lines heading, within open
market multiple insurer contracts).

Each insurer enters their written line here (with continuation pages as necessary)

(Optionally, page numbering of the contract document may cease at the end of the SECURITY
DETAILS where this is preceded by the RISK DETAILS and INFORMATION i.e. a new
numbering sequence may be used in the remainder of the document; incorporating the
SUBSCRIPTION AGREEMENT, FISCAL & REGULATORY and BROKER REMUNERATION &
DEDUCTIONS. It is also optional for the broker to insert a divider at this point.) It should be noted
that each part of the MRC can be numbered individually in order to improve clarity.

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Contract Administration and Advisory Sections:
(The above is an optional heading.)

Subscription Agreement
SLIP LEADER : ABC Syndicate (nnnn) D1

(The heading name of Slip Leader, rather than Contract Leader,

has been retained in order to maintain consistency with the GUA
and other publications. For the purposes of SCAP the Slip Leader
must be (a) an authorised person (as defined in Section 31 of the
Financial Services and Markets Act 2000) with permission to
effect and carry out contracts of insurance; or (b) a member of
Lloyd’s).

BUREAU LEADER: Lloyd’s Bureau Leader is ABC Syndicate D2

The Company Bureau Leader is DEF Company Ltd

(Where both company and Lloyd’s participate, both Bureau

Leaders should be included. For the purposes of SCAP, the
Bureau Leader(s) must be identified).
The Bureau Leaders must adhere to the applicable claims
agreement practices and act in accordance with CLAIMS
AGREEMENT PARTIES, as defined in A or B (below), dependant
upon the claim falling within the scope of the Single Claims
Agreement Party (SCAP) Arrangement.

BASIS OF GUA (Version 2.0 February 2014) with Non–Marine Schedule D3

AGREEMENT TO (October 2001)
CONTRACT (Note: This existing MRC model text references the applicable contract
CHANGES change agreement practice e.g. GUA or AVS100B).
Wherever practicable, between the broker and each (re)insurer
which have at any time the ability to send and receive ACORD
messages:
1. the broker agrees that any proposed contract change will
be requested via an ‘ACORD message’ or using an ACORD
enabled electronic trading platform;
2. whilst the parties may negotiate and agree any contract
change in any legally effective manner, each relevant (re)insurer
agrees to respond via an appropriate ‘ACORD message’ or using
an ACORD enabled electronic trading platform;

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 3. where a (re)insurer has requested to receive notification of
any contract change the broker agrees to send the notification via
an ‘ACORD message’ or using an ACORD enabled electronic
trading platform.

(Note: This new model text promotes the use of ACORD

messaging as the means of endorsement submission, agreement
and notification).

OTHER Slip leader only to agree part two changes. D4

AGREEMENT
PARTIES FOR
CONTRACT
CHANGES FOR
PART 2 GUA
CHANGES ONLY:

AGREEMENT DEF Company Ltd to agree all contract changes. D5

PARTIES FOR
CONTRACT
CHANGES FOR
THEIR
PROPORTION
ONLY:

BASIS OF CLAIMS As specified under the CLAIMS AGREEMENT PARTIES and to D6

AGREEMENT: be managed in accordance with:

i) The SINGLE CLAIMS AGREEMENT PARTY

ARRANGEMENTS – LMA9150 [as below] [as below] for
claims or circumstances assigned as Single Claims
Agreement Party Claims (SCAP Claims) or, where it is not
applicable, then the following shall apply as appropriate:

ii) The Lloyd’s Claims Scheme (Combined), or as amended or

any successor thereto.

(N.B. The applicable Lloyd’s Claims Scheme/part will be

determined by the rules and scope of the Scheme(s)).

iii) IUA claims agreement

practices.

iv) The practices of any company(ies) electing to agree claims

in respect of their own participation.

The applicable arrangements (scheme, agreement or practices)

will be determined by the rules and scope of said arrangements
and should be referred to as appropriate

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 Single Claims Agreement Party Arrangements

1 Single Claims Agreement Party

1.1 Scope

All claims having, or circumstances assessed by the SLIP LEADER as

having, a Claim Amount at or below GBP250,000 or currency
equivalent (the Threshold Amount) will be designated a Single Claims
Agreement Party Claim (SCAP Claim) and will be managed within the
terms of these Single Claims Agreement Party Arrangements (these
Arrangements). For the purposes of these Arrangements the SLIP
LEADER must be: (a) an authorised person (as defined in Section 31 of
the Financial Services and Markets Act 2000) with permission to effect
and/or carry out contracts of insurance; or (b) a Member of Lloyd’s.

1.2 Exceptions

Where:

1.2.1 the Claim Amount is more than, or, in the assessment

of the SLIP LEADER, is likely to be more than, the
Threshold Amount; and/or

1.2.2 after making further enquiries, there remains

insufficient information to form a view on the likely
quantum of any circumstance or claim and in the SLIP
LEADER’S assessment, there is a material risk that
the quantum will ultimately exceed the Threshold
Amount; and/or

1.2.3 issues arise of fraud or avoidance (either under the

Insurance Act 2015 or otherwise) or there are
allegations against (re)insurers of regulatory breach
which may result in regulatory action being taken
against (re)insurers, or actionable allegations of
improper claims handling have been made in respect
of the claim at issue, or, in the assessment of the SLIP
LEADER, such issues are likely to arise in connection
with a claim; and/or

1.2.4 in the assessment of the SLIP LEADER a claim is, or

is likely to become, controversial or complex, or is
likely to become subject to Dispute Resolution
Proceedings,

such claims or circumstances shall be managed in accordance with the

provisions of the applicable BASIS OF CLAIMS AGREEMENT.

2 Slip Leader Responsibilities

2.1 Receipt of a Claim

Upon receiving a notification of a claim or circumstance, the SLIP

LEADER shall, as soon as practicable, reasonably assess and decide,
based on all the relevant circumstances (including but not limited to the
Claims Information), whether such claim or circumstance is a SCAP
Claim and notify the Broker accordingly with instructions for it to advise
this decision to all claims agreement parties defined in B of the CLAIMS
AGREEMENT PARTIES section.

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 2.2 Role of the Slip Leader

A SCAP Claim shall be Determined by the SLIP LEADER on behalf of

itself and all (re)insurers which subscribe: (1) to this Contract on the
same contractual terms (other than premium and brokerage); and (2) to
these Arrangements (Subscribing (Re)Insurers).

When Determining a SCAP Claim, including where the SLIP LEADER

may have delegated the Determination of a SCAP Claim, the SLIP
LEADER must always:

2.2.1 act in good faith and exercise the reasonable care of a

competent (re)insurer; and

2.2.2 act in the best interest of all Subscribing (Re)Insurers

on whose behalf it acts; and

2.2.3 comply with all laws, sanctions regimes, regulations and

related guidance (including, but not limited to, those
issued by Lloyd’s, the Financial Conduct Authority
and/or the Prudential Regulation Authority) as may be
applicable to the Determination of a SCAP Claim and
to which the SLIP LEADER is subject, including, but not
limited to conduct of business rules requiring
(re)insurers to treat customers fairly (if applicable in that
jurisdiction); and

2.2.4 notify either directly or via the Broker, all Subscribing

(Re)Insurers of any Dispute Resolution Proceedings
commenced against them.

For the avoidance of doubt, the SLIP LEADER shall have no obligations
or liability to any (re)insurer, other than a Subscribing (Re)Insurer,
arising out of or in any way connected with the Determination of a
SCAP Claim.

2.3 Reassigning Claims

Where during the life of a SCAP Claim any of the provisions of clause
1.2 apply, the SLIP LEADER shall:

2.3.1 reassign the SCAP Claim to the claims agreement

parties defined in B of the CLAIMS AGREEMENT
PARTIES section; and

2.3.2 notify the Broker accordingly with instructions for it to

advise all applicable claims agreement parties defined in
B of the CLAIMS AGREEMENT PARTIES section,
following which the provisions of the applicable BASIS
OF CLAIMS AGREEMENT shall apply to the claim.

The SLIP LEADER may, at any time, reassign a SCAP Claim outside of
these Arrangements if having due regard to the available Claims
Information, all relevant circumstances and its ability to act in
accordance with clauses 2.2.1 to 2.2.3 inclusive, it considers that this
assignment would be appropriate, following which the provisions of the
applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.

The Broker may also, at any time, reassign a SCAP Claim outside of

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 these Arrangements and to the provisions of the applicable BASIS OF
CLAIMS AGREEMENT by advising all claims agreement parties defined
in B of the CLAIMS AGREEMENT PARTIES section.

Where a SCAP Claim has been reassigned outside of these

Arrangements, it may not, without the consent of all claims agreement
parties defined in B of the CLAIMS AGREEMENT PARTIES section, be
reassigned as a SCAP Claim.

Notwithstanding clauses 1.2.1 and 1.2.2 but without prejudice to any

other right or requirement to (re)assign a SCAP Claim outside of these
Arrangements, where the exchange rate between Sterling and the
currency in which the SCAP Claim has been made fluctuates after the
conversion date stated in A of the CLAIMS AGREEMENT PARTIES
section such that the Sterling value of the claim exceeds the Threshold
Amount, the claim shall not cease to be a SCAP Claim by reason of the
currency fluctuation alone.

2.4 Delegation of Determination

The SLIP LEADER may delegate its Determination of a SCAP Claim to

another entity.

Despite its right to delegate the Determination of a SCAP Claim

pursuant to these Arrangements the SLIP LEADER shall remain
responsible for all acts and omissions of the delegate and the acts and
omissions of those employed or engaged by the delegate as if they were
its own.

2.5 Processing Claims

The SLIP LEADER shall ensure that all supporting information has been
properly documented prior to payment of the claim and that such
records are kept for a period of no less than seven years after closure,
subject always to the requirements of applicable laws (including but not
limited to those applicable to the processing of personal data and
privacy).

3 Broker Responsibilities

Notwithstanding the application of these Arrangements, the Broker

shall advise all claims agreement parties defined in B of the CLAIMS
AGREEMENT PARTIES section of any or all of the following matters or
events, where known, as soon as practicable:

3.1 any new claim or circumstance assigned as a SCAP Claim;

3.2 any recommended reserve or reserves for a SCAP Claim;
3.3 any revision to the recommended reserve or reserves for a
SCAP Claim;
3.4 any change in the assignment of a SCAP Claim;
3.5 the receipt of notice of the commencement of any Dispute
Resolution Proceedings relating to a SCAP Claim;
3.6 the final Determination of a SCAP Claim, including where a
SCAP Claim is denied;
3.7 any receipt of a complaint against (re)insurers;
3.8 any termination of the SLIP LEADER’s authority to Determine
claims under clauses 4.1 to 4.3 inclusive; and/or
3.9 where so requested by the SLIP LEADER, the identity and
participation of all Subscribing (Re)Insurers.

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 A Subscribing (Re)Insurer may request the SLIP LEADER and/or
Broker to provide such further information as it may reasonably require
and the SLIP LEADER and Broker shall co-operate fully with any such
request.

4 Termination of the SLIP LEADER’s Authority

In the event that the SLIP LEADER:

4.1 becomes the subject of voluntary or involuntary rehabilitation or

liquidation, action in bankruptcy or similar or in any way
otherwise acknowledges its insolvency or is unable to pay its
debts or losses; or
4.2 has its right to transact the main class of business covered by
the slip withdrawn, suspended, removed or made conditional or
impaired in any way by any regulatory authority; or
4.3 ceases to be either: (a) an authorised person (as defined in
Section 31 of the Financial Services and Markets Act 2000) with
permission to effect and/or carry out contracts of insurance; or
(b) a member of Lloyd’s,

the authority of that SLIP LEADER to Determine all SCAP Claims shall
automatically terminate from the date of that event, following which the
provisions of the applicable BASIS OF CLAIMS AGREEMENT shall
apply to the claim.

5 Professional Advisers

5.1 The SLIP LEADER has the sole authority to appoint and instruct
an independent, external, professional adviser (which may
include, but is not limited to, a lawyer, loss adjuster, surveyor,
actuary or accountant) on behalf of Subscribing (Re)Insurers
where, in its sole discretion, it considers the professional adviser
necessary for the Determination of a claim. The SLIP LEADER
shall supervise the professional adviser throughout the period of
their appointment.

5.2 A professional adviser appointed in connection with a SCAP

Claim pursuant to clause 5.1 above may, at the SLIP LEADER’s
discretion, be instructed to send all reports and correspondence directly
to the SLIP LEADER. The professional adviser’s fees shall be agreed by
the SLIP LEADER. The fees of the professional adviser shall be shared
between the Subscribing (Re)Insurers in accordance with their
respective shares of the SCAP Claim.

6 Claims Concerns

If a Subscribing (Re)Insurer has a concern regarding the handling of a

SCAP Claim by the SLIP LEADER it shall notify the SLIP LEADER of its
concern. The SLIP LEADER and the Subscribing (Re)Insurer which
has raised the concern shall promptly confer and use their best
endeavours to resolve the concern. If any disagreement remains after a
period of 28 days from the date on which the concern was notified to the
SLIP LEADER, the authority of the SLIP LEADER to Determine the
SCAP Claim to which the concern relates shall terminate, following
which the provisions of the applicable BASIS OF CLAIMS AGREEMENT
shall apply to the claim.

7 Intra-(Re)Insurer Dispute Resolution Protocols

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 Before a Subscribing (Re)Insurer (Claimant) can bring a legal claim
against the SLIP LEADER in relation to the Determination of a SCAP
Claim or for an alleged breach of its obligations under these
Arrangements, it must first attempt to resolve the dispute (Dispute) as
follows:

7.1 The Claimant shall notify the SLIP LEADER that it is

commencing the Dispute Resolution Protocols prescribed in
this clause 7.
7.2 The Dispute shall first be referred to representatives of the SLIP
LEADER and of the Claimant who shall meet in a good faith
effort to resolve the Dispute. If a resolution is not achieved
within 21 days from the date the Dispute was referred to these
individuals, the matter shall be escalated to a member of senior
management responsible for claims, for each of the Claimant
and SLIP LEADER, who shall attempt to resolve the Dispute.
7.3 If the Dispute has not been resolved within 28 days from the
date upon which it is referred to senior management, then the
Claimant and SLIP LEADER shall enter into a mediation
agreement in the form prescribed by the LMA and IUA. If the
resulting mediation fails to resolve the Dispute, then the
Dispute shall be settled by arbitration in accordance with clause
7.4, provided always that the decision to commence an
arbitration must be taken by the senior management of the
Claimant in question.
7.4 All arbitrations arising out of or in connection with a Dispute
shall be referred to arbitration under ARIAS Fast Track
Arbitration Rules. The seat of arbitration shall be London.

8 Limitation of Liability

8.1 The total liability, whether in contract, in tort (including but not
limited to negligence), breach of fiduciary duty, breach of
statutory duty or otherwise, of a SLIP LEADER to all
Subscribing (Re)Insurers on whose behalf it has acted, or is
acting, under these Arrangements shall not exceed GBP
500,000 in respect of any one SCAP Claim (Liability Cap).

8.2 If the aggregate liability of a SLIP LEADER in respect of any one

SCAP Claim would exceed the Liability Cap, the Subscribing
(Re)Insurers shall each be entitled to be paid only a share of
the Liability Cap calculated in proportion to the share of the
(re)insurance underwritten by each Subscribing (Re)Insurer
(excluding for the purposes of this clause any share
underwritten by the SLIP LEADER).
8.3 A SLIP LEADER shall not be liable for loss of profits, loss of
business, loss of use (in each case whether direct or indirect) or
any other indirect, special, or consequential damages alleged to
have been suffered by a Subscribing (Re)Insurer arising out of
its breach of the terms of these Arrangements.
8.4 Notwithstanding clause 8.3 but subject always to clauses 8.1,
8.2 and 8.5, nothing in this clause 8 is intended to exclude the
SLIP LEADER’S liability to the Subscribing (Re)Insurers in
respect of damages payable by the Subscribing (Re)Insurers
to the (re)insured, in addition to the Claim Amount, arising from
the mishandling of a SCAP Claim by the SLIP LEADER, its
agents or employees, where such mishandling gives rise to an
actionable claim for damages against Subscribing
(Re)Insurers.
8.5 Nothing in these Arrangements shall exclude, restrict or limit
with respect to the handling of a SCAP Claim a SLIP LEADER’s

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 liability for: (1) fraud or fraudulent misrepresentation; (2) death
or personal injury caused by its negligence or the negligence of
its employees or agents; or (3) any matter in respect of which it
would be unlawful to exclude or restrict liability.

9 Choice of Law and Jurisdiction

Notwithstanding any other choice of law, express or implied in the

contract of (re)insurance, the provisions of these Arrangements shall
be construed and governed in accordance with the Laws of England and
Wales and the Subscribing (Re)Insurers submit to the exclusive
jurisdiction of the Courts of England and Wales.

10 Exclusions

10.1 The following types of business (and applicable risk codes for
Lloyd’s) are excluded from these Arrangements:

10.1.1 Binding Authorities;

10.1.2 Proportional & Quota Share Treaties.

10.2 The following forms of settlement are excluded from these

Arrangements:

10.2.1 ex gratia payments of any kind;

10.2.2 commutation agreements.

Definitions

In these Arrangements, unless the context otherwise requires, the

following words shall have the following meanings:

Claim Amount means:

 in relation to each SCAP Claim, the total amount claimed (after
the application of any applicable deductible(s));or
 in relation to a circumstance, the total amount which, in the
judgement of the SLIP LEADER, may be claimed (after the
application of any applicable deductible(s)),

by the (re)insured from all (re)insurers under the Contract including, but
not limited to, any of their expenses or other sums that are recoverable
from the (re)insurers under the Contract pursuant to the terms of the
(re)insurance. The Claim Amount shall exclude any costs incurred by
the (re)insurers arising out of, or in connection with the handling of a
SCAP Claim.

Claims Information means the information contained within a

notification or provided by the (re)insured or its agent in relation to a
SCAP Claim. It also includes all information obtained by the SLIP
LEADER or provided by any Professional Adviser employed by
(re)insurers.

Contract means, for the purposes of these Arrangements,

(re)insurance evidenced by (re)insurers subscribing to a single Market
Reform Contract and where all (re)insurers participate on the same
contractual terms and conditions (other than premium and brokerage).

Determination/Determine means all claims handling activities

necessary (including the appointment and instruction of any
Professional Advisers) in order to: (i) accept or deny a SCAP Claim, in

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 whole or in part; (ii) agree any amount payable and (iii) resolve finally
any open matter in respect of the SCAP Claim by agreement or,
negotiation.

Dispute Resolution Proceedings means any litigation, arbitration,

mediation, regulatory hearing (other than before an ombudsman) or
other contested proceeding commenced by or against Subscribing
(Re)Insurers in any jurisdiction.

LMA9150
01 February 2018

CLAIMS A. Claims falling within the scope of the LMA9150 to be D7

AGREEMENT agreed by Slip Leader only on behalf of all (re)insurers
PARTIES: subscribing (1) to this Contract on the same contractual
terms (other than premium and brokerage) and (2) to these
Arrangements. For the purposes of calculating the
Threshold Amount, the sterling rate on the date that a
financial value of the claim is first established by the Slip
Leader shall be used and the rate of exchange shall be the
Bank of England spot rate for the purchase of sterling at the
time of the deemed conversion.

B. For all other claims:

i) For Lloyd’s syndicates
The leading Lloyd’s syndicate and, where required by the
applicable Lloyd’s Claims Scheme, the second Lloyd’s syndicate.
The second Lloyd’s Syndicate is JKL (1234).
(Where known by the broker, they may insert the second Lloyd’s
Syndicate name here – or may leave space for the relevant
underwriter to apply their stamp below).

ii) Those companies acting in accordance with the IUA claims

agreement practices, excepting those that may have opted
out via iii below.
(The companies that apply the IUA claims agreement practices
do not need to be individually identified here).
iii) Those companies that have specifically elected to agree
claims in respect of their own participation.
DEF Company
(Where known by the broker, the company(ies) electing to agree
claims in respect of their own participation can be recorded here
by the broker – otherwise this should be indicated by the relevant
company(ies) placing their stamp(s) under this heading).

iv) All other subscribing insurers that are not party to the
Lloyd’s/IUA claims agreement practices, each in respect of
their own participation.
(Companies that are not a party to the IUA Claims Agreement
Practices will be handled under this category; they do not need to
be individually identified).

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 v) Notwithstanding anything contained in the above to the
contrary, any ex gratia payments to be agreed by each
(re)insurer for their own participation.

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CLAIMS Broker XYZ and insurers agree that any claims hereunder D8
ADMINISTRATION: (including any claims related costs/fees) will be notified and
administered via ECF with any payment(s) processed via CLASS,
unless both parties agree to do otherwise.
Where claims or circumstances are not administered via ECF,
notification, administration and payment(s) will be electronic.
Where a Lloyd’s syndicate or IUA company is not an agreement
party to the claim or circumstance (per CLAIMS AGREEMENT
PARTIES A. above), they agree to accept correct ECF
sequences for administrative purposes to ensure information is
circulated to all subscribing parties.

RULES AND None, unless otherwise specified here by any of the claims D9
EXTENT OF ANY agreement parties shown above.
OTHER
DELEGATED
CLAIMS
AUTHORITY:

EXPERT(S) FEES ANO Ltd to collect fees for all contract security (insurers), D10
COLLECTION: including overseas.

SETTLEMENT DUE 1st April YYYY. D11

DATE:

BUREAU (e.g. an appropriate premium processing clause) D14

ARRANGEMENTS:

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Fiscal and Regulatory
TAX PAYABLE BY None applicable E1
INSURER(S):
(For all taxation headings, where there are a large number of
locations and/or taxes applicable then it may be more practical to
provide the tax information in an attached spreadsheet/tax
schedule, which may then be referenced here.
The tax position for the contract/policy must always be clear on
the insurance documentation.)

COUNTRY OF United States of America E2

ORIGIN:

REGULATORY United States of America E3

RISK LOCATION:

OVERSEAS Broker XYZ, Downtown, Olympia, Washington (WA) 88888, USA E4

BROKER:

SURPLUS LINES Broker XYZ, Downtown, Olympia, Washington (WA) 88888, USA E5
BROKER: Surplus Lines Number: 1234567

STATE OF FILING: Washington (WA) E6

US US Surplus Lines E7
CLASSIFICATION:

ALLOCATION OF (Enter Risk Code(s) and any allocation.) E9

PREMIUM TO
CODING: P2 (94.34%) US primary

6T (4.72%) TRIA

TO (0.94%) Non-Certified Terrorism

REGULATORY Large Risk E11

CLIENT
CLASSIFICATION:

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Broker Remuneration & Deductions

FEE PAYABLE BY No F1
CLIENT?:

TOTAL Z%o F2
BROKERAGE:

OTHER 5% Survey fee payable to XYZ Inc F5

DEDUCTIONS
FROM PREMIUM:

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GLOBAL EXAMPLE:
Heading
Reference
Risk Details
UNIQUE MARKET B0999ABC123456789 A1
REFERENCE :

TYPE: All Risks of Direct Physical Loss or Damage including Boiler A2

Explosion and Machinery Breakdown insurance.

INSURED: XXXX England Plc. A3

ADDRESS: Number 1, Big Boulevard, Milton Keynes, UK

PERIOD: Effective from: 1 January YYYY at 12:01pm GMT A4

To: 1 January YYYY at 12:01pm GMT

INTEREST: Real and Personal Property at the offices of the insured in the UK, A5
Austria New Zealand and Spain, including the additional
coverages defined below:

Personal Property of the Insured’s Officials and Employees while

on the Premises of the Insured
Improvements and Betterments
Business Interruption (Net Profits and / or Fixed Charges)
Ordinary Payroll
Rental Value / Rental Income
Electronic Data Processing Equipment and Machinery

and as fully defined in the contract wording and clauses

referenced herein.

LIMITS: GBP 10,000,000 any one occurrence and in the annual A6

aggregate
Program Sublimits schedule:
Flood: GBP 2,000,000 any one occurrence
Boiler & Machinery: GBP 2,000,000 any one accident

Program Deductibles schedule:

Each claim for loss or damage shall be subject to a combined
Property Damage and Time Element deductible as follows:

Windstorm / Flood: GBP 2,000

All other perils except for the above: GBP 1,000

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INSURED’S 20% of 100%.
RETENTION:

SITUATION: Offices of the insured in the UK, Spain, New Zealand and Austria. A7

CONDITIONS: (Any bespoke wording or clauses will form part of this section, A8
whereas
model or registered wordings or clauses can be referred to by
reference as per the following example)

XYZ Insurer – Primary Property wording CPROP192 – dated

January 2005
NMA 2914 (Amended Perils) Electronic Data Endorsement A
(Section two sub-limit USD 100,000,000)
LMA 5019 Asbestos Endorsement
NMA 2962 Biological or Chemical Materials Exclusion
LSW 3001 Premium Payment Clause

LOSS PAYEE: XXXX Inc. Number 2 Boulevard, Milton Keynes, UK

SUBJECTIVITIES: The Insured shall provide to the Insurer a property survey

report on the insured addresses such report to be prepared by
MNO Surveyors (“the Survey”). The Survey shall be so
provided by 12:01p.m.GMT on 31 January YYYY (“the Survey
Deadline”).
Between inception and the Survey Deadline, cover is provided
by the Insurer on the terms and conditions specified in the
contract to which this condition is attached (“the Contract
Terms”).
Where the Survey is not submitted to the Insurer by the Survey
Deadline, cover shall terminate at the Survey Deadline.
Where the Survey is submitted to the Insurer by the Survey
Deadline, cover shall continue from the Survey Deadline on the
Contract Terms until expiry of the period of the contract unless
and until terminated in accordance with the following
paragraph.
In the event that the Survey is unsatisfactory to the Insurer, the
Insurer shall have the right, within 14 days of its receipt, to
terminate the contract by serving not less than 14 days notice
in writing to the Insured at its address shown in the contract,
such notice expiring no earlier than the Survey Deadline.
In the event of termination under this survey condition, the
Insured shall be entitled to pro rata return of premium for the
unexpired period of the contract unless a loss has arisen for

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 which the Insured seeks indemnity under this contract in which
case the Insurers shall remain entitled to the premium specified
in the Contract Terms.
To the extent that this survey condition conflicts with any other
cancellation, notice and premium provision in the Contract
Terms, this survey condition shall prevail.

CHOICE OF LAW This insurance shall be governed by and construed in accordance A10
AND with the law of England and Wales. Each party agrees to submit
JURISDICTION: to the exclusive jurisdiction of any competent court within England
and Wales.

PREMIUM: GBP 1,000,000 (100%) Annual A11

PREMIUM 60 Day Payment condition – LSW 3001 Premium Payment Clause A12
PAYMENT TERMS:

TAXES PAYABLE UK IPT at 12% on UK Gross Premium (GBP 550,000). A13

BY INSURED AND Spain Premium tax at 6% (on GBP 200,000 Gross Premium),
ADMINISTERED Consorcio (formerly CLEA) at 1.5% (on GBP 200,000
BY INSURER(S): Gross Premium), Consorcio (extraordinary risks) at
0.021% of the Sum Insured (EUR 13,500,000).
Austria Premium Tax at 11% (on GBP 50,000 Gross Premium)’
Fire Brigade Charge at 4% of 20% of Gross Premium
apportioned to fire only risks (GBP 10,000)

(For all taxation headings, where there are a large number of

locations and/or taxes applicable then it may be more practical to
provide the tax information in an attached spreadsheet/tax
schedule, which may then be referenced here.
The tax position for the contract/policy must always be clear on
the insurance documentation.)

TAXES PAYABLE New Zealand Income Tax at 2.8% (on GBP 200,000 Gross A14
BY INSURERS Premium)
AND Fire Services Commission Levy 0.076% on New
ADMINISTERED Zealand Sum Insured (NZD 500,000)
BY INSURED, OR
THEIR AGENT: (For all taxation headings, where there are a large number of
locations and/or taxes applicable then it may be more practical to
provide the tax information in an attached spreadsheet/tax
schedule, which may then be referenced here.
The tax position for the contract/policy must always be clear on
the insurance documentation.)

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RECORDING, Where Broker XYZ maintains risk and claim A15
TRANSMITTING & data/information/documents Broker XYZ may hold
STORING data/information/documents electronically.
INFORMATION:

INSURER This document details the contract terms entered into by the A16
CONTRACT insurer(s), and constitutes the contract document.
DOCUMENTATION:
Any further documentation changing this contract, agreed in
accordance with the contract change provisions set out in this
contract, shall form the evidence of such change

(An insurer may specify here any insurer contract documentation

requirements that apply to them. E.g. need for a policy, or policy
endorsements, including the policy form to be used.)

NOTICE OF Where (re)insurers have the right to give notice of cancellation, in A18
CANCELLATION accordance with the provisions of the contract, then:
PROVISIONS:
To the extent provided by the contract, the Slip Leader is
authorised to issue such notice on behalf of all participating
(re)insurers; and (optionally)
Any (re)insurer may issue such notice in respect of its own
participation.
The content and format of any such notice should be in
accordance with the ‘Notice of Cancellation’ standard, as
published by the London Market Group (LMG), or their successor
body, on behalf of London Market Associations and participants.
However failure to comply with this standard will not affect the
validity of the notice given.
The notice shall be provided to the broker by the following
means:
By an electronic message, to the ACORD standard agreed by
market bodies, delivered to the XYZ system, (as defined by the
relevant broker); or
By an email to [email protected] and
[email protected] ; or
By an email to [email protected] .
Failure to comply with this delivery requirement will make the
notice null and void. Satisfactory delivery of the notice will cause
it to be effective irrespective of whether the broker has
acknowledged receipt.

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Information
The following information was provided to insurer(s) to support the assessment of the risk at the
time of underwriting.

Client submission dated November YYYY prepared by Producer Inc and seen by all participants
hereon and held on file by Broker XYZ Ltd

No losses past five years

EFG Burglar alarm system installed at all locations

ABC Sprinkler system installed at Milton Keynes location

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Security Details
INSURER’S (This clause LMA3333 should be provided in full and not simply C1
LIABILITY: referenced.)

LMA3333

(Re)insurer’s liability several not joint

The liability of a (re)insurer under this contract is several and not
joint with other (re)insurers party to this contract. A (re)insurer is
liable only for the proportion of liability it has underwritten. A
(re)insurer is not jointly liable for the proportion of liability
underwritten by any other (re)insurer. Nor is a (re)insurer
otherwise responsible for any liability of any other (re)insurer that
may underwrite this contract.

The proportion of liability under this contract underwritten by a

(re)insurer (or, in the case of a Lloyd’s syndicate, the total of the
proportions underwritten by all the members of the syndicate
taken together) is shown next to its stamp. This is subject always
to the provision concerning “signing” below.

In the case of a Lloyd’s syndicate, each member of the syndicate

(rather than the syndicate itself) is a (re)insurer. Each member
has underwritten a proportion of the total shown for the syndicate
(that total itself being the total of the proportions underwritten by
all the members of the syndicate taken together). The liability of
each member of the syndicate is several and not joint with other
members. A member is liable only for that member’s proportion. A
member is not jointly liable for any other member’s proportion.
Nor is any member otherwise responsible for any liability of any
other (re)insurer that may underwrite this contract. The business
address of each member is Lloyd’s, One Lime Street, London
EC3M 7HA. The identity of each member of a Lloyd’s syndicate
and their respective proportion may be obtained by writing to
Market Services, Lloyd’s, at the above address.

Proportion of liability
Unless there is “signing” (see below), the proportion of liability
under this contract underwritten by each (re)insurer (or, in the
case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together)
is shown next to its stamp and is referred to as its “written line”.

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 Where this contract permits, written lines, or certain written lines,
may be adjusted (“signed”). In that case a schedule is to be
appended to this contract to show the definitive proportion of
liability under this contract underwritten by each (re)insurer (or, in
the case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together).
A definitive proportion (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed line”.
The signed lines shown in the schedule will prevail over the
written lines unless a proven error in calculation has occurred.

Although reference is made at various points in this clause to “this

contract” in the singular, where the circumstances so require this
should be read as a reference to contracts in the plural.

ORDER HEREON: 80% of 100% C2

BASIS OF Percentage of whole. C3

WRITTEN LINES:

SIGNING In the event that the written lines hereon exceed 100% of the C5
PROVISIONS: order, any lines written “to stand” will be allocated in full and all
other lines will be signed down in equal proportions so that the
aggregate signed lines are equal to 100% of the order without
further agreement of any of the insurers.

However:

a) in the event that the placement of the order is not

completed by the commencement date of the period of
insurance then all lines written by that date will be signed in
full;

b) the signed lines resulting from the application of the above

provisions can be varied, before or after the
commencement date of the period of insurance, by the
documented agreement of the insured and all insurers
whose lines are to be varied. The variation to the contracts
will take effect only when all such insurers have agreed,
with the resulting variation in signed lines commencing from
the date set out in that agreement.

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 WRITTEN LINES: In a co-insurance placement, following (re)insurers may, but are C6
not obliged to, follow the premium charged by the slip leader.

(Re)insurers may not seek to guarantee for themselves terms as

favourable as those which others subsequently achieve during
the placement.

(The above text is recommended for use, directly under the

Written Lines heading, within open market multiple insurer
contracts).

Each insurer enters their written line here (with continuation pages as necessary)

(Optionally, page numbering of the contract document may cease at the end of the SECURITY
DETAILS where this is preceded by the RISK DETAILS and INFORMATION i.e. a new
numbering sequence may be used in the remainder of the document; incorporating the
SUBSCRIPTION AGREEMENT, FISCAL & REGULATORY and BROKER REMUNERATION &
DEDUCTIONS parts of the MRC. It is also optional for the broker to insert a divider at this point.)

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Contract Administration and Advisory Sections:
(The above is an optional heading.)

Subscription Agreement
SLIP LEADER: ABC Syndicate (nnnn) D1

(The heading name of Slip Leader, rather than Contract Leader,

has been retained in order to maintain consistency with the GUA
and other publications. For the purposes of SCAP the Slip Leader
must be (a) an authorised person (as defined in Section 31 of the
Financial Services and Markets Act 2000) with permission to
effect and carry out contracts of insurance; or (b) a member of
Lloyd’s).

BUREAU LEADER: Lloyd’s Bureau Leader is ABC Syndicate D2

The Company Bureau Leader is DEF Company Ltd

(Where both company and Lloyd’s participate, both Bureau

Leaders should be included. For the purposes of SCAP, the
Bureau Leader(s) must be identified).

The Bureau Leaders must adhere to the applicable claims

agreement practices and act in accordance with CLAIMS
AGREEMENT PARTIES, as defined in A or B (below), dependant
upon the claim falling within the scope of the Single Claims
Agreement Party (SCAP) Arrangement.

BASIS OF GUA (Version 2.0 February 2014) with Non–Marine Schedule D3

AGREEMENT TO (October 2001)
CONTRACT
CHANGES: (Note: This existing MRC model text references the applicable
contract change agreement practice e.g. GUA or AVS100B).

Wherever practicable, between the broker and each (re)insurer

which have at any time the ability to send and receive
ACORD messages:
1. the broker agrees that any proposed contract change will
be requested via an ‘ACORD message’ or using an
ACORD enabled electronic trading platform;
2. whilst the parties may negotiate and agree any contract
change in any legally effective manner, each relevant
(re)insurer agrees to respond via an appropriate ‘ACORD
message’ or using an ACORD enabled electronic trading
platform;

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 3. where a (re)insurer has requested to receive notification of
any contract change the broker agrees to send the
notification via an ‘ACORD message’ or using an ACORD
enabled electronic trading platform.
(Note: This new model text promotes the use of ACORD
messaging as the means of endorsement submission, agreement
and notification).

OTHER Slip leader only to agree part two changes. D4

AGREEMENT
PARTIES FOR
CONTRACT
CHANGES FOR
PART 2 GUA
CHANGES ONLY:

AGREEMENT DEF Company Ltd to agree all contract changes. D5

PARTIES FOR
CONTRACT
CHANGES, FOR
THEIR
PROPORTION
ONLY:

BASIS OF CLAIMS As specified under the CLAIMS AGREEMENT PARTIES and to D6

AGREEMENT: be managed in accordance with:

i) The SINGLE CLAIMS AGREEMENT PARTY

ARRANGEMENTS – LMA9150 [as below] for claims or
circumstances assigned as Single Claims Agreement Party
Claims (SCAP Claims) or, where it is not applicable, then
the following shall apply as appropriate:

ii) The Lloyd’s Claims Scheme (Combined), or as amended or

any successor thereto.

(N.B. The applicable Lloyd’s Claims Scheme/part will be

determined by the rules and scope of the Scheme(s)).

iii) IUA claims agreement practices.

iv) The practices of any company(ies) electing to agree claims

in respect of their own participation.

The applicable arrangements (scheme, agreement or practices)

will be determined by the rules and scope of said arrangements
and should be referred to as appropriate.

Single Claims Agreement Party Arrangements

1 Single Claims Agreement Party

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 1.1 Scope

All claims having, or circumstances assessed by the SLIP LEADER as

having, a Claim Amount at or below GBP250,000 or currency
equivalent (the Threshold Amount) will be designated a Single Claims
Agreement Party Claim (SCAP Claim) and will be managed within the
terms of these Single Claims Agreement Party Arrangements (these
Arrangements). For the purposes of these Arrangements the SLIP
LEADER must be: (a) an authorised person (as defined in Section 31 of
the Financial Services and Markets Act 2000) with permission to effect
and/or carry out contracts of insurance; or (b) a Member of Lloyd’s.

1.2 Exceptions

Where:

1.2.1 the Claim Amount is more than, or, in the assessment

of the SLIP LEADER, is likely to be more than, the
Threshold Amount; and/or

1.2.2 after making further enquiries, there remains

insufficient information to form a view on the likely
quantum of any circumstance or claim and in the SLIP
LEADER’S assessment, there is a material risk that
the quantum will ultimately exceed the Threshold
Amount; and/or

1.2.3 issues arise of fraud or avoidance (either under the

Insurance Act 2015 or otherwise) or there are
allegations against (re)insurers of regulatory breach
which may result in regulatory action being taken
against (re)insurers, or actionable allegations of
improper claims handling have been made in respect
of the claim at issue, or, in the assessment of the SLIP
LEADER, such issues are likely to arise in connection
with a claim; and/or

1.2.4 in the assessment of the SLIP LEADER a claim is, or

is likely to become, controversial or complex, or is
likely to become subject to Dispute Resolution
Proceedings,

such claims or circumstances shall be managed in accordance with the

provisions of the applicable BASIS OF CLAIMS AGREEMENT.

2 Slip Leader Responsibilities

2.1 Receipt of a Claim

Upon receiving a notification of a claim or circumstance, the SLIP

LEADER shall, as soon as practicable, reasonably assess and decide,
based on all the relevant circumstances (including but not limited to the
Claims Information), whether such claim or circumstance is a SCAP
Claim and notify the Broker accordingly with instructions for it to advise
this decision to all claims agreement parties defined in B of the CLAIMS
AGREEMENT PARTIES section.

2.2 Role of the Slip Leader

A SCAP Claim shall be Determined by the SLIP LEADER on behalf of

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 itself and all (re)insurers which subscribe: (1) to this Contract on the
same contractual terms (other than premium and brokerage); and (2) to
these Arrangements (Subscribing (Re)Insurers).

When Determining a SCAP Claim, including where the SLIP LEADER

may have delegated the Determination of a SCAP Claim, the SLIP
LEADER must always:

2.2.1 act in good faith and exercise the reasonable care of a

competent (re)insurer; and

2.2.2 act in the best interest of all Subscribing (Re)Insurers

on whose behalf it acts; and

2.2.3 comply with all laws, sanctions regimes, regulations and

related guidance (including, but not limited to, those
issued by Lloyd’s, the Financial Conduct Authority
and/or the Prudential Regulation Authority) as may be
applicable to the Determination of a SCAP Claim and
to which the SLIP LEADER is subject, including, but not
limited to conduct of business rules requiring
(re)insurers to treat customers fairly (if applicable in that
jurisdiction); and

2.2.4 notify either directly or via the Broker, all Subscribing

(Re)Insurers of any Dispute Resolution Proceedings
commenced against them.

For the avoidance of doubt, the SLIP LEADER shall have no obligations
or liability to any (re)insurer, other than a Subscribing (Re)Insurer,
arising out of or in any way connected with the Determination of a
SCAP Claim.

2.3 Reassigning Claims

Where during the life of a SCAP Claim any of the provisions of clause
1.2 apply, the SLIP LEADER shall:

2.3.1 reassign the SCAP Claim to the claims agreement

parties defined in B of the CLAIMS AGREEMENT
PARTIES section; and

2.3.2 notify the Broker accordingly with instructions for it to

advise all applicable claims agreement parties defined in
B of the CLAIMS AGREEMENT PARTIES section,
following which the provisions of the applicable BASIS
OF CLAIMS AGREEMENT shall apply to the claim.

The SLIP LEADER may, at any time, reassign a SCAP Claim outside of
these Arrangements if having due regard to the available Claims
Information, all relevant circumstances and its ability to act in
accordance with clauses 2.2.1 to 2.2.3 inclusive, it considers that this
assignment would be appropriate, following which the provisions of the
applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.

The Broker may also, at any time, reassign a SCAP Claim outside of
these Arrangements and to the provisions of the applicable BASIS OF
CLAIMS AGREEMENT by advising all claims agreement parties defined
in B of the CLAIMS AGREEMENT PARTIES section.

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 Where a SCAP Claim has been reassigned outside of these
Arrangements, it may not, without the consent of all claims agreement
parties defined in B of the CLAIMS AGREEMENT PARTIES section, be
reassigned as a SCAP Claim.

Notwithstanding clauses 1.2.1 and 1.2.2 but without prejudice to any

other right or requirement to (re)assign a SCAP Claim outside of these
Arrangements, where the exchange rate between Sterling and the
currency in which the SCAP Claim has been made fluctuates after the
conversion date stated in A of the CLAIMS AGREEMENT PARTIES
section such that the Sterling value of the claim exceeds the Threshold
Amount, the claim shall not cease to be a SCAP Claim by reason of the
currency fluctuation alone.

2.4 Delegation of Determination

The SLIP LEADER may delegate its Determination of a SCAP Claim to

another entity.

Despite its right to delegate the Determination of a SCAP Claim

pursuant to these Arrangements the SLIP LEADER shall remain
responsible for all acts and omissions of the delegate and the acts and
omissions of those employed or engaged by the delegate as if they were
its own.

2.5 Processing Claims

The SLIP LEADER shall ensure that all supporting information has been
properly documented prior to payment of the claim and that such
records are kept for a period of no less than seven years after closure,
subject always to the requirements of applicable laws (including but not
limited to those applicable to the processing of personal data and
privacy).

3 Broker Responsibilities

Notwithstanding the application of these Arrangements, the Broker

shall advise all claims agreement parties defined in B of the CLAIMS
AGREEMENT PARTIES section of any or all of the following matters or
events, where known, as soon as practicable:

3.1 any new claim or circumstance assigned as a SCAP Claim;

3.2 any recommended reserve or reserves for a SCAP Claim;
3.3 any revision to the recommended reserve or reserves for a
SCAP Claim;
3.4 any change in the assignment of a SCAP Claim;
3.5 the receipt of notice of the commencement of any Dispute
Resolution Proceedings relating to a SCAP Claim;
3.6 the final Determination of a SCAP Claim, including where a
SCAP Claim is denied;
3.7 any receipt of a complaint against (re)insurers;
3.8 any termination of the SLIP LEADER’s authority to Determine
claims under clauses 4.1 to 4.3 inclusive; and/or
3.9 where so requested by the SLIP LEADER, the identity and
participation of all Subscribing (Re)Insurers.

A Subscribing (Re)Insurer may request the SLIP LEADER and/or

Broker to provide such further information as it may reasonably require
and the SLIP LEADER and Broker shall co-operate fully with any such
request.

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 4 Termination of the SLIP LEADER’s Authority

In the event that the SLIP LEADER:

4.1 becomes the subject of voluntary or involuntary rehabilitation or

liquidation, action in bankruptcy or similar or in any way
otherwise acknowledges its insolvency or is unable to pay its
debts or losses; or
4.2 has its right to transact the main class of business covered by
the slip withdrawn, suspended, removed or made conditional or
impaired in any way by any regulatory authority; or
4.3 ceases to be either: (a) an authorised person (as defined in
Section 31 of the Financial Services and Markets Act 2000) with
permission to effect and/or carry out contracts of insurance; or
(b) a member of Lloyd’s,

the authority of that SLIP LEADER to Determine all SCAP Claims shall
automatically terminate from the date of that event, following which the
provisions of the applicable BASIS OF CLAIMS AGREEMENT shall
apply to the claim.

5 Professional Advisers

5.1 The SLIP LEADER has the sole authority to appoint and instruct
an independent, external, professional adviser (which may
include, but is not limited to, a lawyer, loss adjuster, surveyor,
actuary or accountant) on behalf of Subscribing (Re)Insurers
where, in its sole discretion, it considers the professional adviser
necessary for the Determination of a claim. The SLIP LEADER
shall supervise the professional adviser throughout the period of
their appointment.

5.2 A professional adviser appointed in connection with a SCAP

Claim pursuant to clause 5.1 above may, at the SLIP LEADER’s
discretion, be instructed to send all reports and correspondence directly
to the SLIP LEADER. The professional adviser’s fees shall be agreed by
the SLIP LEADER. The fees of the professional adviser shall be shared
between the Subscribing (Re)Insurers in accordance with their
respective shares of the SCAP Claim.

6 Claims Concerns

If a Subscribing (Re)Insurer has a concern regarding the handling of a

SCAP Claim by the SLIP LEADER it shall notify the SLIP LEADER of its
concern. The SLIP LEADER and the Subscribing (Re)Insurer which
has raised the concern shall promptly confer and use their best
endeavours to resolve the concern. If any disagreement remains after a
period of 28 days from the date on which the concern was notified to the
SLIP LEADER, the authority of the SLIP LEADER to Determine the
SCAP Claim to which the concern relates shall terminate, following
which the provisions of the applicable BASIS OF CLAIMS AGREEMENT
shall apply to the claim.

7 Intra-(Re)Insurer Dispute Resolution Protocols

Before a Subscribing (Re)Insurer (Claimant) can bring a legal claim

against the SLIP LEADER in relation to the Determination of a SCAP
Claim or for an alleged breach of its obligations under these
Arrangements, it must first attempt to resolve the dispute (Dispute) as

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 follows:

7.1 The Claimant shall notify the SLIP LEADER that it is

commencing the Dispute Resolution Protocols prescribed in
this clause 7.
7.2 The Dispute shall first be referred to representatives of the SLIP
LEADER and of the Claimant who shall meet in a good faith
effort to resolve the Dispute. If a resolution is not achieved
within 21 days from the date the Dispute was referred to these
individuals, the matter shall be escalated to a member of senior
management responsible for claims, for each of the Claimant
and SLIP LEADER, who shall attempt to resolve the Dispute.
7.3 If the Dispute has not been resolved within 28 days from the
date upon which it is referred to senior management, then the
Claimant and SLIP LEADER shall enter into a mediation
agreement in the form prescribed by the LMA and IUA. If the
resulting mediation fails to resolve the Dispute, then the
Dispute shall be settled by arbitration in accordance with clause
7.4, provided always that the decision to commence an
arbitration must be taken by the senior management of the
Claimant in question.
7.4 All arbitrations arising out of or in connection with a Dispute
shall be referred to arbitration under ARIAS Fast Track
Arbitration Rules. The seat of arbitration shall be London.

8 Limitation of Liability

8.1 The total liability, whether in contract, in tort (including but not
limited to negligence), breach of fiduciary duty, breach of
statutory duty or otherwise, of a SLIP LEADER to all
Subscribing (Re)Insurers on whose behalf it has acted, or is
acting, under these Arrangements shall not exceed GBP
500,000 in respect of any one SCAP Claim (Liability Cap).

8.2 If the aggregate liability of a SLIP LEADER in respect of any one

SCAP Claim would exceed the Liability Cap, the Subscribing
(Re)Insurers shall each be entitled to be paid only a share of
the Liability Cap calculated in proportion to the share of the
(re)insurance underwritten by each Subscribing (Re)Insurer
(excluding for the purposes of this clause any share
underwritten by the SLIP LEADER).
8.3 A SLIP LEADER shall not be liable for loss of profits, loss of
business, loss of use (in each case whether direct or indirect) or
any other indirect, special, or consequential damages alleged to
have been suffered by a Subscribing (Re)Insurer arising out of
its breach of the terms of these Arrangements.
8.4 Notwithstanding clause 8.3 but subject always to clauses 8.1,
8.2 and 8.5, nothing in this clause 8 is intended to exclude the
SLIP LEADER’S liability to the Subscribing (Re)Insurers in
respect of damages payable by the Subscribing (Re)Insurers
to the (re)insured, in addition to the Claim Amount, arising from
the mishandling of a SCAP Claim by the SLIP LEADER, its
agents or employees, where such mishandling gives rise to an
actionable claim for damages against Subscribing
(Re)Insurers.
8.5 Nothing in these Arrangements shall exclude, restrict or limit
with respect to the handling of a SCAP Claim a SLIP LEADER’s
liability for: (1) fraud or fraudulent misrepresentation; (2) death
or personal injury caused by its negligence or the negligence of
its employees or agents; or (3) any matter in respect of which it
would be unlawful to exclude or restrict liability.

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 9 Choice of Law and Jurisdiction

Notwithstanding any other choice of law, express or implied in the

contract of (re)insurance, the provisions of these Arrangements shall
be construed and governed in accordance with the Laws of England and
Wales and the Subscribing (Re)Insurers submit to the exclusive
jurisdiction of the Courts of England and Wales.

10 Exclusions

10.1 The following types of business (and applicable risk codes for
Lloyd’s) are excluded from these Arrangements:

10.1.1 Binding Authorities;

10.1.2 Proportional & Quota Share Treaties.

10.2 The following forms of settlement are excluded from these

Arrangements:

10.2.1 ex gratia payments of any kind;

10.2.2 commutation agreements.

Definitions

In these Arrangements, unless the context otherwise requires, the

following words shall have the following meanings:

Claim Amount means:

 in relation to each SCAP Claim, the total amount claimed (after
the application of any applicable deductible(s));or
 in relation to a circumstance, the total amount which, in the
judgement of the SLIP LEADER, may be claimed (after the
application of any applicable deductible(s)),

by the (re)insured from all (re)insurers under the Contract including, but
not limited to, any of their expenses or other sums that are recoverable
from the (re)insurers under the Contract pursuant to the terms of the
(re)insurance. The Claim Amount shall exclude any costs incurred by
the (re)insurers arising out of, or in connection with the handling of a
SCAP Claim.

Claims Information means the information contained within a

notification or provided by the (re)insured or its agent in relation to a
SCAP Claim. It also includes all information obtained by the SLIP
LEADER or provided by any Professional Adviser employed by
(re)insurers.

Contract means, for the purposes of these Arrangements,

(re)insurance evidenced by (re)insurers subscribing to a single Market
Reform Contract and where all (re)insurers participate on the same
contractual terms and conditions (other than premium and brokerage).

Determination/Determine means all claims handling activities

necessary (including the appointment and instruction of any
Professional Advisers) in order to: (i) accept or deny a SCAP Claim, in
whole or in part; (ii) agree any amount payable and (iii) resolve finally
any open matter in respect of the SCAP Claim by agreement or,
negotiation.

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 Dispute Resolution Proceedings means any litigation, arbitration,
mediation, regulatory hearing (other than before an ombudsman) or
other contested proceeding commenced by or against Subscribing
(Re)Insurers in any jurisdiction.

LMA9150
01 February 2018

CLAIMS A. Claims falling within the scope of the LMA9150 to be D7

AGREEMENT agreed by Slip Leader only on behalf of all (re)insurers
PARTIES: subscribing (1) to this Contract on the same contractual
terms (other than premium and brokerage) and (2) to these
Arrangements. For the purposes of calculating the
Threshold Amount, the sterling rate on the date that a
financial value of the claim is first established by the Slip
Leader shall be used and the rate of exchange shall be the
Bank of England spot rate for the purchase of sterling at the
time of the deemed conversion.

B. For all other claims:

v) For Lloyd’s syndicates
The leading Lloyd’s syndicate and, where required by the
applicable Lloyd’s Claims Scheme, the second Lloyd’s syndicate.
The second Lloyd’s Syndicate is JKL (1234).
(Where known by the broker, they may insert the second Lloyd’s
Syndicate name here – or may leave space for the relevant
underwriter to apply their stamp below).

vi) Those companies acting in accordance with the IUA claims

agreement practices, excepting those that may have opted
out via iii below.
(The companies that apply the IUA claims agreement practices
do not need to be individually identified here).
vii) Those companies that have specifically elected to agree
claims in respect of their own participation.
DEF Company
(Where known by the broker, the company(ies) electing to agree
claims in respect of their own participation can be recorded here
by the broker – otherwise this should be indicated by the relevant
company(ies) placing their stamp(s) under this heading).

viii) All other subscribing insurers that are not party to the
Lloyd’s/IUA claims agreement practices, each in respect of
their own participation.
(Companies that are not a party to the IUA Claims Agreement
Practices will be handled under this category; they do not need to
be individually identified).

v) Notwithstanding anything contained in the above to the

contrary, any ex gratia payments to be agreed by each

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 (re)insurer for their own participation.

PAGE X OF Y

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CLAIMS Broker XYZ and insurers agree that any claims hereunder D8
ADMINISTRATION: (including any claims related costs/fees) will be notified and
administered via ECF with any payment(s) processed via CLASS,
unless both parties agree to do otherwise.
Where claims or circumstances are not administered via ECF,
notification, administration and payment(s) will be electronic.
Where a Lloyd’s syndicate or IUA company is not an agreement
party to the claim or circumstance (per CLAIMS AGREEMENT
PARTIES A. above), they agree to accept correct ECF
sequences for administrative purposes to ensure information is
circulated to all subscribing parties.

RULES AND None, unless otherwise specified here by any of the claims D9
EXTENT OF ANY agreement parties shown above.
OTHER
DELEGATED
CLAIMS
AUTHORITY:

EXPERT(S) FEES ANO Ltd to collect fees for all contract security, including D10
COLLECTION: overseas.

SETTLEMENT DUE 1st April YYYY. D11

DATE:

BUREAU (e.g. an appropriate premium processing clause) D14

ARRANGEMENTS:

PAGE X OF Y

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Fiscal and Regulatory
TAX PAYABLE BY UK None applicable E1
INSURER(S): Spain Fire Brigade Charge at 5% of 20% of Gross
Premium apportioned to fire only risks (GBP
40,000)
Austria Fire Brigade Charge at 4% of 20% of Gross
Premium apportioned to fire only risks (GBP
10,000).
New Zealand Income Tax and Fire Services Commission
administered by the insured/their agent as
specified within Risk Details.

(For all taxation headings, where there are a large number of

locations and/or taxes applicable then it may be more practical to
provide the tax information in an attached spreadsheet/tax
schedule, which may then be referenced here.
The tax position for the contract/policy must always be clear on
the insurance documentation.)

COUNTRY OF UK E2
ORIGIN:

REGULATORY EEA: Austria, Spain E3

RISK LOCATION: Non EEA: UK, New Zealand

OVERSEAS None E4
BROKER:

SURPLUS LINES None E5

BROKER:

ALLOCATION OF P3 (100%) E9
PREMIUM TO
CODING:
(Enter Risk Code(s) and any allocation.)

REGULATORY Large Risk E11

CLIENT
CLASSIFICATION:

PAGE X OF Y

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Broker Remuneration & Deductions

FEE PAYABLE BY No F1
CLIENT?:

TOTAL Z% F2
BROKERAGE:

OTHER 5% Survey fee payable to XYZ Inc F5

DEDUCTIONS
FROM PREMIUM:

PAGE X OF Y

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