A GUIDE TO REINSURANCE LAW APPENDIX 1 A MARKET REFORMSLIP STRUCTURE

1st Edition, 2007

Chapter APPENDIX 1

A MARKET REFORMSLIP STRUCTURE

A MARKET REFORMSLIP STRUCTURE
Fields likely to be in the core MR Slip are shown in bold.
UMR
TYPE
FORM

INSURED/REINSURED
PERIOD

INTEREST
SUM INSURED
ORDER HEREON
SITUATION
CONDITIONS

EXPRESS WARRANTIES

CONDITIONS PRECEDENT

SUBJECTIVITIES
SEVERAL LIABILITY

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CHOICE OF LAW & JURISDICTION

PREMIUM
PAYMENT TERMS

FEE PAYABLE BY CLIENT

TOTAL BROKERAGE
OTHER DEDUCTIONS FROM PREMIUM
TAXES PAYABLE BY INSURED AND ADMINISTERED BY
UNDERWRITERS

Robert Merkin

The unique market reference.

The nature of the risk.
The NMA reference or other identification of the policy jacket. The
wording or clauses should not be shown here, these should be
included in the Conditions heading.
The (Re)insureds name, address and/or business as applicable.
Period of risk, including reference to time and time zone, bdi (both
days inclusive) is acceptable where appropriate but time zone must
be shown.
Interest or subject matter insured or nature of liability.
Sum insured or reinsured or indemnity or monetary limits.
100% of 100%
Situation, territorial limits or location.
Identification, qualification or variation in perils including the
wording, clauses, conditions and amendments to any clauses in
basic form. All standard wordings and clauses should be clearly
identified by name and reference. Any non-standard wording or
clauses should be referred to here and attached to the slip. If there
are no Conditions, field need not be shown.
Any express warranties that apply to the contract (in addition to
those that are specified in the wording if already indicated),
including when specified the penalties for non-compliance. If there
are no express warranties this heading would not be included.
Details of any conditions precedent that apply to the contract (in
addition to those that are specified in the wording if already
indicated), including when specified the consequences of
non-compliance. If there are no conditions precedent this heading
would not be included.
For subjectivities that do not have specific homes.
The several liability clause that applies, and the text of the clause
(LSW 1001).
The court that will have jurisdiction in the event of a dispute
between (Re)insured and (Re)insurers and the law that will apply.
The Premium to be paid by the Insured.
The specific Premium Payment Terms applied to the contract by
the Slip Leader, including Premium Payment Clauses, Warranties
and Conditions.
Yes/No.
The brokerage allowance.
e.g. Commission.
Any premium taxes and charges payable by the Insured in addition
to the premium stated above, which are collected and/or

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A GUIDE TO REINSURANCE LAW APPENDIX 1 A MARKET REFORMSLIP STRUCTURE

1st Edition, 2007

administered by underwriters, e.g. UKIPT. Any premium taxes and

charges payable by underwriters should be shown in the Fiscal &
Regulatory section.
RECORDING, TRANSMITTING & STORING INFORMATION Details of procedures for storage of data, documents and other
information. This heading is optional.
SIGNING PROVISIONS
These must be shown. Model words have been provided.
SUBSCRIPTION AGREEMENT
NB: Last Sections are very much to do with London Market
systems.
SLIP LEADER
State who is the Slip Leader.
SETTLEMENT DUE DATE
To be entered as appropriate.
BASIS OF WRITTEN LINES
To be entered as appropriate.
OTHER AGREEMENT PARTIES FOR CONTRACT CHANGES, State those underwriters, other than the Slip Leader, who will agree
IF ANY
contract changes on behalf of the subscribing underwriters in
accordance with the terms agreed below under the GUA. This
should not include those underwriters who wish to agree contract
changes on their own behalf. NB: Care should be taken to avoid
conflict with current leading underwriter agreements. This field
should only be shown where there is a GUA mentioned in the next
field.
BASIS OF AGREEMENT TO CONTRACT
Specify any leading underwriter agreement that applies, e.g. NMA,
LUAMC, GUA and applicable class of business schedule(s) etc.
CHANGES
To include the method of advising agreed endorsements to the
following market e.g. use of email and/or access to repositories.
DOCUMENT PRODUCTION
The type of insuring documentation to be produced, who produces
it, who agrees it and any particular requirements, e.g. specific
language.
CLAIMS AGREEMENT PARTIES
Identity of the claims agreement parties, e.g. Slip Leader, plus the
first IUA company and LCO.
BASIS OF CLAIMS AGREEMENT
Specify the basis of the claims procedure such as the Lloyds 2006
claims scheme including the parties for the agreement of claims
and/or IUA claims agreement practices.
CLAIMS ADMINISTRATION
All claims related information with the exception of identification
of agreement parties and the basis of claims agreement should be
included here. Clarification is required as to which underwriters
will use CLASS and the use of email and/or access to repositories.
RULES AND EXTENT OF ANY OTHER DELEGATED
If any of the claims agreement parties specified above have
AUTHORITY
delegated their claims processing and agreement to any other party
this should be specified here including any limits that may apply,
e.g. all claims less than GBP xxxx.
EXPERT(S) FEES
The party(ies) responsible for the collection of experts fees. There
are eight options available under the experts fees collection
arrangements. One of these options MUST be used.
BUREAUX ARRANGEMENTS
Any specific arrangements relating to the bureaux including
administrative arrangements for premium settlement, delinked
accounting, and policy signing or basis of policy agreement clauses.
INFORMATION
Details of any information provided to underwriters to support the
assessment of the risk at the time of placement. Where the

Robert Merkin

A GUIDE TO REINSURANCE LAW APPENDIX 1 A MARKET REFORMSLIP STRUCTURE

1st Edition, 2007

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information is appropriate for inclusion in the slip it should be

shown here. Where the size or format of the information is not
suitable for inclusion the location of the information should be
clearly referenced from this section but should be made available to
all underwriters during placing.
FISCAL AND REGULATORY
TAX PAYABLE BY UNDERWRITER(S)
Any premium taxes and charges payable by underwriters from the
premium paid to them e.g. US Federal Excise Tax. Any premium
taxes and charges payable by the Insured in addition to the premium
which are collected or administered by underwriters should be
shown in the Taxes Payable by Insured heading of the Risk Details.
COUNTRY OF ORIGIN
To be entered as appropriate.
US CLASSIFICATION
To be entered as appropriate.
NAIC CODES
To be included when applicable.
ALLOCATION OF PREMIUM TO CODING
Any allocation of premium where multiple risk codes exist.
FSA CLIENT CLASSIFICATION
To be entered as appropriate.

Robert Merkin