market communication · 2020. 11. 10. · page 2 queries relating to the wider part vii process...
TRANSCRIPT
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market communication
Ins-Sure Services Limited
Registered Office 30 St Mary Axe • London • EC3A8EP • UK
Registered in England and Wales
No. 04124846
To: Broker Contacts
Lloyd’s Managing Agents
Software Providers
Date: 5 November 2020
Reference: 2020/113
Enquiries to: Nick Parker
Tel: +44 (0)20 3604 7697
Email: [email protected]
RE: LLOYD’S PART VII TRANSFER – DXC’S ROLE IN TRIAGING PREMIUMS AND CLAIMS
Lloyd’s is in the process of implementing a Part VII transfer to transfer the Lloyd’s market’s
existing European business, which will be affected by the loss of passporting rights, from
Lloyd’s members to Lloyd’s Insurance Company S.A (hereinafter referred to as Lloyd’s
Brussels).
DXC has been requested to revise premium and claims processing in to provide a Part
VII Triage Service (‘triage’).
This market communication explains when triage applies, DXC’s role in triage, the effect
of this process on data received by managing agents, changes to bureau processing for
brokers, and the procedure for where there are disputes regarding the status assigned
by Xchanging.
The new Part VII service will go live on 21 December 2020.
DXC market communications referred to herein can be found on the Insurance Portal. If
you don’t already have access, please contact the DXC Service Desk on 0870 380 0830
or +44 (0)20 3604 4444 or [email protected] .
Please contact Nick Parker on +44 (0)20 3604 7697 or [email protected] should you
require any further details relating to DXC’s role in the Part VII process or what needs to
be submitted to DXC.
Continued…
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Page 2
Queries relating to the wider Part VII process should be directed to:
Stakeholder Management - [email protected]
Lloyd’s Brussels Operations - [email protected]
Please note that a separate DXC market communication 2020/110 issued on 28 October
2020 addresses issues arising from EIOPA Recommendation 9.
KERRY RAINER
ACCOUNT GENERAL MANAGER
INS-SURE HOLDINGS LTD &
XCHANGING CLAIMS SERVICES LTD
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Contents Overview ....................................................................................................................................................................................................................................... 4
Definition of business subject to Part VII transfer ................................................................................................................... 4
Process ....................................................................................................................................................................................................................................... 5
Identification ....................................................................................................................................................................................................................... 7
When will manual triage apply? ...................................................................................................................................................................... 7
How will manual triage be performed? ................................................................................................................................................. 10
Manual triage process – non-bulked ................................................................................................................................................. 10
Action required by broker - non-bulked .................................................................................................................................. 12
Manual triage process – bulked ............................................................................................................................................................... 13
Action required by broker where the master list status is unknown or mixed or the
OSND is newly identified - bulked .................................................................................................................................................... 13
German Reinsurance .............................................................................................................................................................................................. 15
Xchanging’s systems .............................................................................................................................................................................................. 16
Deferreds and delinked ............................................................................................................................................................................................. 16
Disputes .......................................................................................................................................................................................................................................... 17
Premium corrections .....................................................................................................................................................................................................20
Claims corrections ..........................................................................................................................................................................................................20
Loss funds ..................................................................................................................................................................................................................................... 21
Button stamps ......................................................................................................................................................................................................................... 21
Account Enquiry ................................................................................................................................................................................................................. 22
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Throughout this document any reference to the Scheme shall mean the Scheme for the transfer of insurance
business and related assets and liabilities from certain of the Members of Lloyd’s for any or all of the 1993 to
2020 (inclusive) years of account represented by the Society of Lloyd’s to Lloyd’s Insurance Company S.A.
The terms slip and endorsement have been used throughout this document in recognition of the fact that
legacy business may not be in MRC format.
The abbreviation OSND refers to the bureau Original Signing Number and Date.
Overview
Definition of business subject to Part VII transfer
A full definition of what business is subject to the Part VII transfer can be found on Lloyd’s
website at www.Lloyds.com/brexittransfer.
In summary, the Part VII transfer relates to all years of account from 1993 up to and
including 2020 written by Lloyd’s syndicates (as opposed to Lloyd’s Brussels) in respect of
EEA and Monegasque insurance business where the risk or facility incepts on or before 12
April 2019 and German reinsurance business where the risk or facility incepts or on or
before 29 October 2020, unless that portion of the risk simultaneously fits the definition of
regulated business in Australia, Canada, Hong Kong, Singapore, South Africa or
Switzerland.
EEA It is important to note that EEA has been used by Lloyd’s for the Part
VII transfer, not EU. Monaco is also included.
Excluded
business
Any signing which would otherwise have been included within the
transfer but which is regulated business in respect of Australia,
Canada, Hong Kong, Singapore, South Africa or Switzerland, will be
treated as outside the scope of Part VII even if it simultaneously fits
the definition of EEA and Monegasque insurance business (dual
coding). Definitions as to what constitutes regulated business in
these territories can be found in Lloyd’s Crystal.
http://www.lloyds.com/brexittransfer
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Lower than
contract level
It is important to note that the Part VII triage process is not at
contract level. For example, on a global contract for a Mongolian
policyholder, where premium is split out for a French risk location
and a South African risk location, only the French portion of
premium might be subject to the Part VII transfer. As below, the
status is either locked in by managing agents at OSND or claim level
or, if Xchanging performs manual triage, at signing number level.
Process
Managing agents have been supplied with a master list by Lloyd’s which details all the
OSND relating to the above timeframe, with the lead managing agent being identified
from the first Lloyd’s Syndicate recorded by Xchanging on that OSND. Managing agents
have provided the requested policy data associated with these OSNDs to enable the
Part VII programme to assign a status to each OSND as either transferring, non-
transferring, mixed or unknown. Definitions of these statuses, and how they should be
applied to the master list, are contain in the Market Design Document produced by
Lloyd’s.
First syndicate
may not be slip
or bureau
leader
Each OSND has been considered separately by Lloyd’s. Xchanging
does not guarantee to key lines on OSND in the order that they
appear in the slip or with regard to who the agreement parties are,
there is sometimes a need for new OSND for part of the market
following mid-term market changes, and the decision as to when to
split markets over different OSND is not always provided for in the
slip. It is therefore possible that the first syndicate on an OSND may
not be the slip leader or bureau leader.
This status will determine whether the OSND is included in the Part VII transfer or not, or
whether manual triage is required on subsequent additional and return premiums and
new claims processed on or after 21 December 2020.
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Whilst no monies will move on existing signings (but see deferred and delinked below),
where the status on the master list is transferring or non-transferring it will be used by
Xchanging to generate a trust fund code, as below, to all managing agents on
subsequent signings to that OSND, and where transferring, to reroute new additional and
return premiums and payments relating to claims via Lloyd’s Settlement and Trust Fund
Office (STFO) to Lloyd’s Brussels. This is locked in and cannot be changed by Xchanging
when those transactions are processed.
Syndicates are required to provide onboarding initial loads (including live policies and
open claims) to the Part VII programme to enable Xchanging to tag open Part VII claims
in Xchanging systems. In the period immediately before the transfer, Xchanging will
execute an internal “behind the scenes” bulk claim update to add a Part VII status to all
open claims relating to Part VII transferring policies using the Initial Load open claims
data provided to Lloyd’s by managing agents. Please note that updated Syndicate
Claims Messages (SCMs) showing a Part VII status will not be sent to managing agents at
this stage. The Part VII status will be appended to the transaction record by Xchanging
using the trust fund code reported in USMs/SCMs at the time of the next transaction
movement (regardless of type of movement, including where movement is due to
quarterly exchange rate update). For claims notifications. when the trust fund code is
changed (at the next transaction movement), the incurred will not be brought down to
zero and be restated under the new code.
Please note that non-cash signings relating to Lloyd’s stamps are within the scope of the
Part VII transfer and will follow the same process as cash, except that syndicates will be
required to move monies and report direct to Lloyd’s Brussels. You are however
reminded that as per Xchanging market communication 2019/028 28 March 2019 non-
cash submissions are out of scope for the service that Xchanging provides in respect of
risks on which Lloyd’s Brussels stamps are used.
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Identification
For transactions processed after the triage service goes live on 21 December 2020,
managing agents will be able to identify whether the transaction has a transferring or
non-transferring status by the trust fund code that is recorded within the USM and SCM.
Full details can be found in Xchanging market communication 2020/040 dated 30 April
2020 but the following table details the trust fund codes:
Description Non-Brexit Part VII Value (non-transferring)
Brexit Part VII Value
(transferring)
Premium Trust Fund/Part VII Blank P7
Lloyd’s Dollar Trust Fund NR N7
Canadian Non-Regulated CN 7N
Canadian Regulated CR Not applicable (out of scope)
Reinsurance Status RI R7
Surplus Line SL S7
US Virgin Island VI V7
Kentucky KY K7
Illinois LL L7
Business Incepted prior to
1/8/1995
OL O7
When will manual triage apply?
The master list will contain all known OSNDs from the 1993 year of account until the
date(s) of the list(s), and their transferring status based on data provided to the Part VII
Programme by managing agents.
Xchanging will triage transactions on OSNDs with a master list status of mixed or
unknown, and any newly identified OSND created after completion of the master List, to
determine whether they should be transferring or non-transferring. This will apply
separately to each subsequent Premium/AP/RP/New Claim.
The table below explains which submissions to Xchanging are subject to manual triage.
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Grey cells in the table represent locked in values. Future transactions relating to that
OSND or open claim cannot be varied, and the status applicable thereto will be
automatically generated within Xchanging’s systems.
Status
assigned by
MA
Future PM Future FDO Future AP &
RP
Open claims New &
reopened
claims
Original Signing Number and Date on master list
Transferring N/a N/a Part VII See below #1 Part VII
Non-transferring N/a N/a Non-Part VII See below #1 Non-Part VII
Mixed N/a N/a Manual Triage See below #1 Manual Triage
Unknown N/a N/a Manual Triage See below #1 Manual Triage
Newly identified Manual Triage Non-Part VII#2 Manual Triage Manual Triage Manual Triage
Open claims list (including new movements thereon)
Transferring N/a N/a N/a Part VII N/a
Non-transferring N/a N/a N/a Non-Part VII N/a
Mixed N/a N/a N/a N/a N/a
Unknown N/a N/a N/a N/a N/a
PM – Premium. FDO - For Declaration Only. AP and RP - Additional Premium and Return Premium.
#1 – Open claims on the OSND will be assigned a status separately – see the next section of the table.
#2 – All FDOs signed post master list will be assigned a status of non-transferring, but manual triage applies
separately to each subsequent AP, RP or new claim attaching thereto.
Gap between
master list and
go live
The master list will be updated shortly after the Scheme effective
date to include existing signings that were not included in the
original master list data selection. It is therefore possible that
additional premiums, return premiums and claims could be
received and processed between the triage service going live and
the catch up files, attaching to an OSND which is created between
completion of the original master list and the triage service going
live, which will be subject to manual triage and assigned a status
which differs from that assigned by the lead managing agent as
part of that catch up exercise.
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The catch-up files will not automatically roll over to those AP, RP and
claims. Responsibility rests with managing agents to identify such
transactions and to contact the broker to have them instruct
Xchanging to process any necessary cancel and replacements
under the existing corrections process.
However, allocation of a definitive status of transferring or non-
transferring by the lead managing agent as part of the catch up
exercise will be locked in for all AP, RP and new claims processed
after the catch up has been performed by Xchanging.
Status of OSND
determines
whether locked
in or not locked
in
There is a difference between where the master list status is
definitively transferring or non-transferring and where Xchanging
performs manual triage:
• Where the master list status is definitively transferring or non-
transferring, that status applies not only to that OSND but also
to all subsequent AP/RP and new claims, so all such entries
will be consistent under that OSND.
• However, where Xchanging performs manual triage on a
newly identified OSND, or where managing agents have
assigned a status mixed or unknown to an OSND on the
master list, Xchanging will perform triage on each signing
separately. Where Xchanging performs manual triage, it is
therefore possible that an OSND and AP/RP/new claims
attaching thereto may have a mixture of transferring and
non-transferring statuses.
Closed claims
reopened
A closed claim will not have appeared on the initial load open
claims list that was created from managing agents’ initial load
data. If a closed claim fitting the definition is reopened, it will be
dealt with as if it were a new claim: where the master list status is
definitively transferring or non-transferring the reopened claim
attaching thereto will pick up that locked in status, and where the
OSND has been assigned a master list status of unknown or mixed
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manual triage will be performed by Xchanging on the reopened
claim.
CORs It is important to note that the assignment of a status on claims will
be at Claims Office Reference (claim signing number and date)
level, so it is possible for one UCR to have some CORs that transfer
and others that don’t.
How will manual triage be performed?
The way that manual triage applies is different for non-bulked and bulked business, as
detailed below.
The new triage service will go live on 21st December 2020.
Manual triage process – non-bulked
Based on: Foreign Insurance Legislation (FIL) codes and, where applicable,
policyholder’s domicile
Performed by: Xchanging
Consists of: all OSNDs which are not related to binding authorities or bulking lineslips. It
therefore primarily consists of open market risks and declarations to non-bulking lineslips.
Where the master list status of an OSND is unknown or mixed, or it is newly identified,
Xchanging is responsible for assigning the Part VII status of non-bulked signings.
Xchanging will perform manual triage using the same information that it already uses in
determining the Foreign Insurance Legislation (FIL) codes that are output as part of the
USM and SCM and subsequently used by Lloyd’s for regulatory reporting.
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Appendix A shows the process that Xchanging will follow for additional and return
premiums and new claims attaching to OSND which have as status of mixed or unknown
on the master list.
Appendix B shows the process that Xchanging will follow for newly identified premiums
(premium ONSDs that do not appear on the master list) and additional and return
premiums and claims attaching thereto and attaching to newly identified non-bulked
FDOs. Note that this differs slightly from appendix A in that it omits any reference to the
domicile of the policyholder other than where that is part of the FIL definition for a
particular class of business. This difference is due to the way that the Scheme document
is worded.
A list of FIL codes that fall within the scope of the Part VII transfer, and those which relate
to excluded business and won’t transfer, has been distributed to all managing agents by
the Part VII Programme, and will also be added to Lloyd’s website.
Foreign
Insurance
Legislation (FIL)
definitions
Please note that FIL code definitions, and the need for separate
signings, often change. Xchanging will apply the current FIL
definitions and requirement for separate signing to any new
premium or additional or return premium signings. However, claims
will follow the coding of the premium to which they relate. This
follows current practice. Current FIL definitions are contained in
Lloyd’s Crystal under the heading ‘Definition of risk location’.
Example of
different
statuses on
same UMR
For insurance business, FIL definitions are different depending on
what is being insured. Please refer to Lloyd’s Crystal for all definitions.
For example, premium relating to a Mongolian insured with fixed
property in France would currently be subject to French FIL coding
but premium relating to liability insurance for that insured would not
because coding for liability business is based on the insured’s
domicile. Where separate signings are generated for them, it is
therefore possible that different interests on the same policy could
receive different FIL codes, and under the manual triage carried out
by Xchanging, different Part VII statuses.
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Determining the
domicile of the
policyholder,
where
applicable
Where the FIL code is not an EEA or excluded one, where required
above Xchanging will check where the policyholder is domiciled. In
performing this check, Xchanging will make use of the same
information that it currently uses to assign FIL codes: if a slip shows
the address of the insured under Risk Details or the equivalent
Xchanging will act on that information, or if that is absent the
Country of Origin. Xchanging will not make enquiries to establish
where other ‘additional’ insureds (subsidiary, affiliated or associated
companies etc) are located. This follows current practice.
Fees and
commission
entries etc
Survey fees, leader’s fees, profit commission, commission and other
entries relating to the administration of the contract (not risk
premium) will be treated the same way as the premium or claim to
which they relate.
If Xchanging is unable to determine which FIL code(s) apply, or establish the domicile of
the policyholder, Xchanging will query with the broker for clarification or agreement from
(re)insurers in the same way that we ordinarily would in these circumstances.
Monaco There is currently no FIL code to identify business fitting the
regulatory definition for Monaco. Xchanging will therefore use the
risk location definition, and where applicable policyholder domicile,
to identify Monegasque business and to manually triage
appropriately.
Action required by broker - non-bulked
• There is no change to the way that non-bulked submissions in respect of
premiums, additional premiums, return premiums and claims are made to
Xchanging arising from Part VII.
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• There is no change to LPAN or Treaty Statement completion.
• Please refer to the section below on Corrections. Where a managing agent asks a
broker to change the Part VII status of premiums, additional premiums, return
premiums or claim, cancel and replacement LPANs or Treaty Statements etc must
be supplied as part of the corrections work package along with the appropriate
level of agreement.
• Brokers should note the level of agreement required for changes to the status is
set out under the Disputes section below.
Manual triage process – bulked
Based on: file name prefix
Performed by: coverholder/TPA/broker (binding authorities) and broker (non-bulking
lineslips), assisted by Xchanging
Consists of: all OSNDs which are related to binding authorities or bulking lineslips.
Where the master list status of an OSND is unknown or mixed, or it is newly identified, the
coverholder, TPA or broker is responsible for advising Xchanging whether a premium or
claims bordereau is subject to Part VII or not.
Where that it is the case, bordereaux must be submitted on the IMR with a file name
beginning P7 where the coverholder, TPA or broker has determined they should be
subject to the Part VII transfer. Where the Part VII transfer does not apply, the file name
must begin N7.
Appendix C shows the process that Xchanging will follow for bulked business.
Action required by broker where the master list status is unknown or mixed or the OSND is
newly identified - bulked
• For all Lloyd’s binding authorities and bulking lineslips incepting on or before 12
April 2019, brokers must ensure that premium and claims bordereaux are
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attached to the IMR with a file name beginning either P7 (transferring, subject to
Part VII) or N7 (non-transferring, not subject to Part VII).
• Furthermore, where German reinsurance is included therein, and the premium or
claims bordereaux attaches to a binding authority or bulking lineslip which incepts
on or before 29 October 2020, the same naming convention must be followed.
• Xchanging will query with the broker any submission under a binding authority or
lineslip incepting on or before the above dates if the file naming convention is not
followed. The broker will be required to reload the file using the file naming
convention.
• Mixed bordereaux loaded as a single file will not be accepted in relation to
binding authorities or lineslips incepting on or before the above dates.
• Where possible, it is recommended that where a binding authority has a mix of
transferring and non-transferring, the two bordereaux should be submitted as part
of the same work package.
• There is no change to LPAN or Treaty Statement completion.
• Please refer to the section below on Corrections. Where a managing agent asks a
broker to change the Part VII status of a premium, additional premium, return
premium or claims, cancel and replacement LPANs or Treaty Statements etc must
be supplied as part of the corrections work package along with the appropriate
level of agreement.
• Brokers should note the level of agreement required for changes to the status as
set out under the Disputes section below.
• Brokers may need to split claims blocks on mixed bulked contracts. A separate
Xchanging market communication will be issued in relation to broker numbers,
and this will include an explanation of how bordereau claims should be split,
which is also relevant to this market communication.
• There are no other changes in the way that For Declaration Only, additional
premium, return premium and claims submissions are made to Xchanging.
Managing
Agent has
already
classified
If an OSND has a master list status of transferring or non-transferring,
Xchanging’s systems will automatically follow that locked in status
irrespective of whether the file naming conventions have been
followed, and if they have, irrespective of the file name assigned by
the coverholder, TPA or broker.
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Reliance on file
name
Where the OSND has a status of unknown or mixed or is newly
identified, Xchanging will not check that bordereaux have the
correct prefix. If a bordereau attaching to one of these OSND is
loaded with a file name prefixed with P7 or N7, Xchanging will code
signings based thereon without reference to the contents of the
bordereau.
Delete what
doesn’t apply
It is acknowledged that coverholders and brokers may be unable to
amend legacy systems to produce separate bordereaux.
Xchanging will therefore accept the same bordereau being loaded
with both P7 and N7 file names, provided the data therein that does
not apply is deleted in each file.
Fees and
commission
entries etc
The same naming conventions should apply in respect of
coverholder fees, survey fees, leader’s fees, profit commission,
commission and other entries relating to the administration of the
binding authority or bulking lineslip.
German Reinsurance
Some German reinsurance business continued to be written by Lloyd’s syndicates where
the risk or facility incepted or on or before 29 October 2020. As noted above, this
business will be included in the scope of the Part VII transfer and triage service.
Xchanging has also been asked to implement checks to support managing agents in
compliance with the requirement, set out in Lloyd’s market bulletin Y5301 dated 30 July
2020, that German reinsurance incepting on or after 30 October 2020 must be written
using Lloyd’s Brussels stamps.
In respect of German reinsurance, proportional treaty business written by Lloyd’s
syndicates is within the scope of Part VII and such contracts will transfer if they fulfil the
criteria.
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Lloyd’s Market Bulletin Y4763 dated 27 January 2014 does not require German reinsureds
to be split out and signed separately, so Xchanging will only be able to allocate a
German FIL code where either the whole reinsurance relates to German reinsured(s), the
primary reinsured is German and no other splits are required, or where separate
premium is allocated to the German reinsured and the broker has provided a separate
LPAN for that portion of premium. Where a German FIL is not applied, Xchanging will not
assign a status of transferring
Xchanging’s systems
Where the master list status is unknown or mixed, or the OSND is newly identified,
Xchanging will generate the trust fund code in the following way:
Xchanging
systems
In Xchanging’s premium processing system, where manual triage is
performed, the technician will enter an indicator to identify whether
the signing is transferring or non-transferring, and the trust fund code
will be generated using a combination of that indicator and the FIL
code, currency and the other information that is currently used to
generate trust fund codes. For new claims created after the go live
date, the Xchanging technician will manually enter the trust fund
code on the first (AA) movement. This reflects current practice. For
proportional treaty business processed under the Treaty Scheme,
the trust fund code will be automatically generated for German
reinsurances in the premium processing system.
Deferreds and delinked
Unpaid delinked premiums, additional and return premiums, and instalments under the
deferred account scheme, relating to business within the scope of the transfer will need
to be cancelled and replaced in order to generate the appropriate Part VII status and
trust fund code. A separate communication will be issued by Lloyd’s detailing this
process.
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Disputes
There may be circumstances where managing agents responsible for following
syndicates disagree with the status allocated by the lead managing agent on the
master list, or where managing agents disagree with the outcome of manual triage
performed by Xchanging, the coverholder, TPA or broker.
Lloyd’s expects the lead managing agent to take responsibility for the resolution of any
disputes regarding whether a signing should be subject to the Part VII transfer or not.
Where the OSND on master list has a transferring or non-transferring status
Managing agents have been asked to confirm the accuracy of the master list. The
scope of this confirmation is not included within this document.
On the very rare occasions when a master list OSND is agreed to be incorrect in
accordance with the disputes process outlined later in this document, a cancel and
replace is required to amend it.
Before this can be processed by Xchanging both the lead managing agent on the
master list and Lloyd’s Brussels must approve the change. Agreement from Lloyd’s
Brussels must be obtained by emailing [email protected] in the prescribed format.
Following underwriters must contact the lead managing agent as identified on the
master list if they believe a signing has an incorrect status and therefore trust fund code.
Where the lead managing agent and Lloyd’s Brussels have agreed to this change, the
lead managing agent on the master list should instruct the broker to submit a corrections
work package to Xchanging in the normal way.
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Where the OSND on master list has a status of mixed or unknown
Subsequent additional and return premiums and new claims signed to these OSND
signed after the go live date will be subject to manual triage by Xchanging and will be
allocated the appropriate trust fund code based on the process set out herein.
Where managing agents disagree with the trust fund code allocated by Xchanging, the
lead managing agent on the master list should instruct the broker to submit a corrections
work package to Xchanging in the normal way with the appropriate cancelling and
replacing documentation (LPANs for premiums and AP/RP). There is no need to obtain
agreement from Lloyd’s Brussels.
Where the OSND is newly identified
These OSND and subsequent additional and return premiums and new claims signed
thereto will be subject to manual triage by Xchanging and allocated the appropriate
trust fund code based on the process set out herein
On these OSND there will be no lead managing agent identified because the OSND will
not have appeared on the master list.
Xchanging will therefore accept requests for the cancelling and replacement of signings
relating to newly identified OSND where they have been agreed by the Slip Leader or
Bureau Leader, where a Lloyd’s syndicate has been identified as such in the slip, and
where there is not, using the same logic as we currently apply in determining the Lloyd’s
lead(s). There is no need to obtain agreement from Lloyd’s Brussels.
Following underwriters must therefore contact the above-mentioned syndicate if they
believe a signing has been assigned an incorrect trust fund code by Xchanging.
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All OSND
Xchanging cannot correct a Part VII status and retain the existing signing number and
date(s). Where a change of status is agreed, a cancel and replacement will always be
required.
Brokers and underwriters should note that Xchanging will only carry out a cancel and
replace where the appropriate agreement has been obtained and the request
complies with the above rules. Xchanging will raise a query with the broker where this
has not occurred.
The broker will need to submit a corrections work package including cancelling and
replacing LPANs for all the affected premium, FDO and AP/RP signings and evidence of
the agreement to the change in accordance with the above.
If brokers are unclear as to the Part VII status of an OSND on the master list, they should
consult with the appropriate managing agent.
Part VII
overrides slip
provisions
Xchanging has been instructed that under the terms of the Scheme,
for OSND on the master list, the level of agreement referred to
above must be obtained, irrespective of any slip provisions to the
contrary. If brokers are unsure as to what level of agreement is
required, they should consult with the appropriate managing
agent(s). Please note that Lloyd’s / the Part VII Programme are
currently reviewing the dispute process for where the identity of the
Master List lead is subject to disagreement. DXC will not determine
who the relevant lead is if there is a dispute. Further updates to this
section will be provided following input from Lloyd’s / the Part VII
Programme on this matter.
Where possible all such submissions should be made on the IMR. Where the cancel and
replace relates to a UMR which does not currently exist on the IMR, it will be necessary for
brokers to back load it. Where a Mid Term Broker Change (MTBC) prevents the original
UMR from being used on the IMR, the non-standard process detailed in Xchanging
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market communication 2018/022 dated 21 February 2018 should be followed and a new
UMR created and agreed to enable the cancel and replace to be submitted.
In line with the existing practice, Xchanging will not charge for a cancel and replace
where Xchanging has performed manual triage and it can be identified as being
necessitated by an Xchanging error.
Premium corrections
The only changes to the corrections process are outlined above plus the following:
Wrong file name Where the managing agent has assigned a status to a bulked
OSND of unknown or mixed or it is newly identified after the
completion of the master list, Xchanging will also accept
corrections to AP/RP and new claims set up after the go live date
where the broker advises that the wrong file name was originally
loaded to the IMR.
AP shouldn’t
follow ONSD
For any OSND on the master list with a transferring or non-transferring
status any AP, RP and new claims will automatically attract that
locked in status. The only way to change the status of a subsequent
AP in these circumstances would be to sign it separately as either a
premium or attaching to an FDO signed specifically for that
purpose.
Claims corrections
Where a claim has been subject to manual triage by Xchanging, and the outcome of a
dispute regarding the status results in the need to change it, a cancel and replace of
the relevant COR(s) will need to be requested by emailing the relevant XCS team in the
usual manner. Agreement from the parties identified above must be included in with the
request. Where this occurs, Xchanging will move the Paid To Date from the cancelled
COR(s) to the replacement COR(s).
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Please note that the assignment of a new status to a claim on the initial load claims list,
or of a new claim which was processed against an OSND with a locked in status of
transferring or non-transferring on the master list, will only be possible if the status of the
OSND is first changed to the same as the status to which the claim needs to be
changed. This will require the OSND to be cancelled and replaced before the
replacement COR(s) can be signed, in which case the sequence of events will need to
be, (i) cancel OSND, (ii) replace OSND, (iii) cancel claim (iv) replace claim. Please note
that we cannot guarantee cancellation and replacement will occur on the same day.
Please also see above regarding errors in file name prefixes.
Loss funds
Consideration should be given as to whether loss funds which currently relate to both
transferring and non-transferring business need to split by reducing the existing fund and
establishing a second with the appropriate status.
Button stamps
Managing agents should note that where they agree to a contract change, claim or
bordereau relating to an OSND that has transferred, they should continue to do so using
the button stamp or electronic equivalent belonging to the Lloyd’s syndicate whose
stamp appears on the slip or endorsement. Although technically they will be doing so on
behalf of Lloyd’s Brussels, Lloyd’s Brussels button stamps or electronic equivalent should
not be used when agreeing a contract change, claim or bordereau where it relates to a
Lloyd’s stamp.
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Account Enquiry
Trust fund code is displayed in Account Enquiry.
Existing signings will not be updated to reflect the status that managing agents have
assigned them in the master list.
However, in respect of premium and AP/RP signings processed by Xchanging on or after
the 21 December 2021, the actual trust fund code applicable to that signing will be
displayed in Account Enquiry, either derived from the locked in definitive transferring or
non-transferring master list status provided by the lead managing agent, or as a result of
Xchanging performing or recording manual triage on master list OSND with a mixed or
unknown status and on newly identified OSND.