market bulletin

Ref: Y4765

Title

Lapsing of Coverholders

PurposeTo introduce the new process for the deregistration of coverholders.

TypeEvent

FromPeter Montanaro, Head of Delegated Authorities. Delegated Authorities.
Performance Management Directorate+44 (0)207 327 5971

Date30 January 2014

Deadline
Related links

http://www.lloyds.com/the-market/i-am-a/delegated-authority

From the date of this bulletin, Lloyd’s will be conducting an exercise to reconcile ourcoverholder records. This will result in the deregistration of those coverholders that have not
had active contracts within the last twelve months.
From the date of this bulletin any coverholder that meets the following criteria will be firstly
put into postponed deregistration for a period of time. If this period ends without
communication to Lloyd’s to state otherwise, the coverholders identified will bederegistered. For the avoidance of doubt – postponed deregistration means that a newcontract cannot be registered against this record, however the coverholder remains
approved.
Criteria for postponed deregistration:•Any newly approved coverholder that has not had a binding authority registered against
it for 6 months.

•Any Coverholder without a live binding authority 6 months previous to the date of thisbulletin.

Brokers and Managing Agents will be informed through an Atlas system generated email ofthe coverholder status change, and will be expected to liaise with their coverholders
accordingly.

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

MARKET BULLETIN

Thus there are two stages in the process.
1. The status of postponed deregistration will be applied to those Coverholders that havenot been party to a Binding Authority for the previous 6 months This process willcommence with immediate effect from the date of this bulletin.
2. The status of postponed deregistration will last for six months. During the six month
period, Lloyd’s will expect Brokers or Managing Agents to contact the Corporation via
email at lapsingcoverholders@lloyds.com to request that the coverholder is not to bederegistered and confirm if they have a binder to be registered in the near future. Aftersixth months, if no contact is made by any party that has a relationship with thecoverholder, then the coverholder will be deregistered. At this point, a letter will be sent
to the coverholder, Broker and Lloyd’s representative to inform the coverholder of theirstatus change. Please note that if any new Broker or Managing Agent wants to create a
relationship with a coverholder in postponed deregistration, they will need to contact
Lloyd’s using the email address above to change the coverholder status.
Lloyd’s will produce a letter to the Coverholder, Broker and Lloyd’s country representative toinform them of the status change to “deregistered”. It will be noted that all permissions
including territorial extensions will be removed as a result of the deregistration.
Deregistration will have no bearing on any future applications, however to resume
coverholder activity a new application will be necessary.
Please note this bulletin communication will be the only method Lloyd’s will utilise to informthe market of this process. Future deregistration exercises will take place on a rolling six
month basis.
If you have any questions, please contact +44 (0)20 7327 6725
or lapsingcoverholders@lloyds.com

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