Lloyd's Market Association Bulletin

LMA20-041-AC | 06 October 2020

California Consumer Privacy Act of 2018 (CCPA) – Publication of LMA model wordings

The California Consumer Privacy Act of 2018 (“CCPA”), which took effect on 01 January 2020, governs the collection, use and sale of personal information of California residents and households.

If an underwriter writes insurance in California, it may be considered a “business” under the CCPA and therefore be subject to the requirements of the CCPA because it is (i) a for-profit legal entity, (ii) that likely collects California consumers’ personal information (or on whose behalf California consumers’ personal information is collected), (iii) that determines the purposes and means of processing such personal information, (iv) does business in the state of California and (v) meets or exceeds one of the CCPA applicability thresholds.

Underwriters should evaluate whether they might be considered to be subject to the CCPA. If Underwriters determine that they are subject to the CCPA they will need to comply directly. One of the key compliance steps that underwriters may wish to undertake is the provision of an appropriate privacy notice, which must include a comprehensive description of underwriters’ online and offline data collection and processing.

To assist Underwriters subject to the CCPA in complying with the notice requirements, the LMA has, in conjunction with Lloyd’s and McDermott Will & Emery LLP, produced LMA9191 – Lloyd’s CCPA Privacy Policy  - as a Privacy Notice specifically for use in California.

Underwriters should also review their agreements with affiliates and outside entities, such as coverholders and loss adjusters, to ensure that such entities are complying with applicable CCPA obligations when authorised to act on the Underwriters’ behalf. In view of this, the LMA has, again in conjunction with Lloyd’s and McDermott Will & Emery LLP, updated the US General Cover Conditions (for attachment to LMA Binding Authority Agreements) to include a specific section for California. These revised US General Cover Conditions have been published as LMA5058B  . As with all LMA model clauses and wordings, LMA9191 and LMA5058B are purely illustrative and are distributed for the guidance of LMA members, who are free to agree to different conditions or amend as they see fit.

These wordings are available on the Lloyd’s Wordings Repository (LWR), which can be accessed via www.lloydswordings.com.

Any queries regarding the content of this Bulletin should be referred to the LMA.


Alison Colver
Head of Contract Wordings

Linda Cook
Technical Executive, Wordings