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Lloyd’s Master/Group Policy Level Requirements Checklist

Below is a simple checklist which may help determine whether an arrangement meets the master/group Policy Level Requirements.   

Please note that this checklist does not seek to address the wider requirements set out in the Procedural Requirements relating to managing agents’ procedures for writing and overseeing master policies, the regular review of master/group policies or the delegation of authority to third parties to write master/group policies. 

If the statements in the checklist are true it is likely that the arrangement can be written as a master/group policy. However, it is important to carefully consider the detail of the Policy Level Requirements sitting behind each statement in order to make a full assessment.

1. There is a clearly identifiable and genuine group.

2. The master/group policyholder has a legitimate interest in providing cover for the defined group members.

3. Remuneration for the master/group policyholder is limited to a sum to cover the reasonable costs of administering the policy.

4 (a) The terms of coverage and premium calculation are established with no delegation of discretion to the master/group policyholder or other administrator. 

(b) All members of the defined group are eligible to receive the coverage offered under the master/group policy.

5. Appropriate details of cover will be provided to the Customers.

6. The master/group policy satisfies all contract certainty requirements.

7. The master/group policy does not include shared aggregates or shared deductibles.

8. The master/group policyholder does not have claims handling authority.

9. The master/group policyholder does not have complaints handling authority.

10. The managing agent will be provided with appropriate data to monitor the master/group policy including numbers of Customers.

11. The arrangement meets all relevant local rules and regulations.