market bulletin

Ref: Y4633

Title

Master Policies & Group Schemes – UpdatePurpose

To remind the market of the planned review of master policies/group schemes, andof the end of the retainer with Drinker, Biddle & Reath LLP, and to announce a
refresher training session on Lloyd’s requirements.

TypeEventFrom

Peter Montanaro, Head, Delegated Authorities

Date

13 November 2012

Deadline

As set out in the bulletin

On 30 November 2011, Lloyd’s published Market Bulletin Y4535 which outlined Lloyd’s
expectations regarding master/group policies written in and across all jurisdictions. Thebulletin:•Introduced new guidance on the writing of master/group policies worldwide to ensurecompliance with Lloyd’s delegated underwriting requirements, international licences
and tax obligations.

•Introduced a change in process for master/group policies written in the U.S, effective
1 January 2012. This removed the need for managing agents to obtain the priorapproval of Dewey & LeBoeuf LLP (D&L) for any U.S based master/group polices.

1. Review of master/group policies
On 31 January 2012, Lloyd’s Delegated Authorities Team wrote to Compliance Officers atmanaging agents advising that Lloyd’s will be conducting a review of master/group policies
written, to ensure compliance with the new requirements. This review will now commence
during Q4 2012. Prior to the review being undertaken, Lloyd’s will provide managing agentswith further details, including the scope of the review.
In conducting the review, the Delegated Authorities Team will wish to have a copy of therecord of master/group policies written by each syndicate. It is a requirement that managing
agents maintain a record of their master/group policies, as set out in Appendix 1 of MarketBulletin Y4535.

Page 1 of 2

Lloyd’s is authorised under the Financial Services and Markets Act 2000

MARKET BULLETIN

2. Lloyd’s retainer with Drinker, Biddle & Reath LLP
In order to support managing agents placing U.S. master/group policies, Lloyd’s maintained
a limited retainer with D&L, and later with Drinker, Biddle & Reath LLP (DBR), during 2012
to enable managing agents to continue to access legal and compliance advice on their U.S.
master/group policies.
Managing agents who are currently preparing new U.S master/group policies are remindedthat this retainer will expire on 31 December 2012. Should they wish to make use of thisretainer managing agents should approach DBR before this date. From 1 January 2013
while managing agents are encouraged to seek appropriate legal advice where required
either from DBR or another suitable firm this will be at the managing agent’s own expense.
3. Refresher seminar on Lloyd’s requirements for master/group policies
Following the review of master/group policies, Lloyd’s proposes to host a refresher seminarfor the market, covering Lloyd’s requirements for master/group policies. The seminar will
also address any themes or issues identified during the review.
This seminar will take place during Q1 2013 and depending on demand, Lloyd’s hopes tooffer alternative dates when the market can attend. Further information will be provided indue course.
Further Information
For questions or more information please contact:
Lloyd's International Trading Advice
Tel: 020 7327 6677 or Email: LITA@lloyds.com
Delegated Underwriting Authorities Team
Tel: 020 7327 6275 or Email: coverholders@lloyds.com

Page 2 of 2