A consortium takes over certain business classes produced by more than one Lloyd`s broker (which is the main difference with a line ticket). This form of transfer is authorized in accordance with paragraph 1, point c), of the Intermediate Byelaw. Holders of the service company`s coverage may also delegate the insurance power to another service company on the same basis (in accordance with a binding authorization agreement) and, if they do, lloyd`s will treat this as a consortium agreement that should comply with the requirements of these agreements under this Code. While the agreement model can serve as a starting point for consortium agreements, the diversity and potential complexity of these agreements mean that significant changes may be necessary to reflect the conditions under which the parties plan to implement the agreement. For this reason, LMA members are advised to seek their own independent legal advice under the agreement for each proposed consortium agreement. LMA and Clyde-Co LLP assume no responsibility for losses that are not covered by persons who act or refrain from acting on the basis of material in the agreement model and related instructions. The model agreement was developed for Lloyd`s Syndicates consortia. It is not intended for consortia in which service companies are involved. When a consortium designates a company other than a general manager of Lloyd`s as a consortium manager, Lloyd`s considers it a hedging agreement and Lloydes` requirements for the order for policyholders would apply. On the same site, the LMA also published examples of other agreements. Given the entry into force of the Criminal Finance Act and the RGPD, which comes into force on May 25, 2018, the Lloyd`s Market Association (LMA) has updated the following market model agreements: A consortium is a contractual agreement under which one or more managing agents delegate power, pursuant to a binding authority agreement, to another executive representative (the head of the consortium) to enter into insurance contracts on their behalf.
A „line certificate” refers to an agreement by which a delegated agent delegates his or her authority to enter into insurance contracts … another officer or an approved insurance company with respect to the transaction entered by a lloyd`s broker with his name in the agreement.