A third-party material issue is an issue which arises in relation to a managing agent’s delegation of underwriting or claims handling authority to a third party and which, if substantiated and uncorrected, would:
- result in the Managing Agent deciding to cancel the contract of delegated authority or commence legal action against the Coverholder or Delegated Claims Administrator (DCA); or
- otherwise indicate that the Coverholder or DCA may no longer be suitable to be approved.
Managing Agents are required to notify Lloyd’s at the email address below of any material issue that arises in their dealings with Coverholders and DCAs and these will also need to be reported to the Board of the Managing Agent as soon as possible. If in doubt, the Managing Agent should notify Lloyd’s of its concern. Generally, issues which are purely commercial in nature will not be considered to be material issues requiring to be notified to Lloyd’s.