1. The Council requires every managing agent to comply with and implement the principles and arrangements set out in these Claims Lead Arrangements for the determination of every claim made on an insurance underwritten by two or more syndicates, other than where each of the syndicates are managed by the same managing agent or where the Council otherwise gives a managing agent or any class or group of managing agents dispensation from these Claims Lead Arrangements whether in respect of a class or type of claim or otherwise.
Lloyd’s Claims Lead Arrangements, paragraph 1
2. All in-scope claims that have not been fully determined must be handled in compliance with the requirements set out in the current version of the CLA with effect from 1 June 2023. For CLA claims that commenced prior to 1 June 2023, the requirements of the current version of the CLA must be adopted the next time the managing agent of the leading Lloyd’s syndicate considers the claim, which is likely to be on receipt of the next claims transaction. Until 1 January 2024, transitional arrangements apply for claims on policies involving co-lead binding authority arrangements, as set out in separate guidance published by Lloyd’s.
Lloyd’s Claims Lead Arrangements, paragraph 1.5
Dispensations
3. - Single Claims Agreement Party (SCAP)
The CLA shall not apply where managing agents have agreed on an insurance to adopt the SCAP arrangements for any claims in accordance with the guidelines published by the London Market Group (LMG). This shall be the case as long as the claim continues to meet the conditions for and is handled in accordance with the SCAP arrangements. Where a claim being handled under SCAP is reassigned out of SCAP then the CLA shall apply from that time.
Guidance on the Lloyd’s Claims Lead Arrangements, paragraph 1.7
4. - Satellite
The CLA shall not apply to policies properly assigned to risk code SO, SC, SL SX or ZX.
Guidance on the Lloyd’s Claims Lead Arrangements, paragraph 1.8
5. - Term Life
The CLA shall not apply to policies properly assigned to risk code TL.
Guidance on the Lloyd’s Claims Lead Arrangements, paragraph 1.9
Applying for a dispensation
6. If a managing agent considers that a dispensation from the CLA or any part of it is required in respect of one or more claims, the managing agent should apply to the Head of Claims at Lloyd’s at the earliest opportunity, providing the following information:
- Why is the dispensation being requested?
- Why is compliance with the CLA not possible or not appropriate?
- How will the claim(s) be determined?
- An assessment of the impact of granting the dispensation on the policyholder(s), the broker(s) and any coverholder(s)
- An assessment of whether the dispensation may adversely impact Lloyd’s reputation
- (If applicable) evidence of any agreement to the dispensation from other managing agents, the Lloyd’s broker or the policyholder
Guidance on the Lloyd’s Claims Lead Arrangements, paragraph 1.10
7. Lloyd’s will consider each application having regard to all the relevant circumstances of the particular claim or class of claim. Agreement to any dispensation will be confirmed in writing and may include conditions.
Guidance on the Lloyd’s Claims Lead Arrangements, paragraph 1.11