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: nparker21@dxc.com

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 service.centre@dxc.com .

Please contact Nick Parker on +44 (0)20 3604 7697 or nparker21@dxc.com 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…

mailto:service.centre@dxc.commailto:nparker21@dxc.com

Page 2

Queries relating to the wider Part VII process should be directed to:

Stakeholder Management - Part7@lloyds.com

Lloyd’s Brussels Operations - Part7@lloyds.com

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

mailto:Part7@lloyds.commailto:Part7@lloyds.com

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

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

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.

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.

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.

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.

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

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.

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.

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.

• 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

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.

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.

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.

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 Part7@lloyds.com 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.

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.

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

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).

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.

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.