21 March 2016
LMA publishes new Insurance Act model clauses
A suite of 18 generic model clauses has been published by the Lloyd’s Market Association (LMA), to assist Lloyd’s managing agents in updating their policy wordings in relation to the new Insurance Act 2015 (the Act) and for continuing use in the marketplace. The LMA has also published accompanying guidance.
The clauses are available in the Lloyd’s Wordings Repository, from today, in preparation for the Act which comes into force on 12 August.
Kees van der Klugt, the LMA’s director, legal and compliance, said “Many existing standard policy wordings will need some degree of updating before August, and these clauses should be very useful for all concerned as a point of reference.”
The clauses can be used by managing agents, brokers and clients to ensure consistency with the Act and to create additional contract certainty under a number of the provisions of the Act, where thought necessary.
The clauses perform a range of functions, for example, there are model clauses for specifying details of the ‘insured’s organisation’ and ‘senior management’, both these being facets of the duty of fair presentation under the Act. A number of the clauses contain model words for contracting out of certain provisions of the Act, where the insurer and insured both wish to do so in appropriate circumstances.
The model clauses underwent extensive review by the LMA Insurance Act Working Group and other LMA practitioner groups.
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Notes to Editors
For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405
T 020 7623 2368
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £27billion per annum.