Aviation Committee are working with LIIBA and IUA on a “protocol”, including the drafting of some model “slip” language, to govern the circumstances under which brokers may issue certificates “on behalf of underwriters”. A database of "approved" cerrtificates (The Aviation Certificates Database) is also being developed. It is hoped a letter to LMA, IUA and LIIBA members will issue shortly.
AVS 100B/Aviation GUA
The LMA Aviation Committee and IUA's Aviation Technical Committee (ATC) have agreed that the time has come to move from the current aviation leading underwriter clause AVS 100B to a "standard" General Underwriter Agreement (GUA) and Schedule, in line with other market sectors. Following a period of consultation, this proposal has been endorsed by all aviation underwriters in the LMA and IUA markets. A letter has been sent to LIIBA to inform them that the LMA and IUA aviation sectors therefore propose adopting the standard GUA at the earliest possible opportunity. (The standard GUA is currently under review by an LMG market reform sub-group and, as appropriate, amendments will be made to the Aviation GUA accordingly). On aviation more specifically, LMA and IUA have also drafted an Aviation GUA schedule, which has also been sent to LIIBA. LMA and IUA believe that this will bring greater clarity and contract certainty to the agreement provisions and will leave less room for errors (and potential for subsequent disputes) in the application of the agreement provisions. LIIBA are currently reviewing this and is expected that this will be followed by more detailed discussions between LMA, IUA and LIIBA.