- A line slip is an agreement by which a Managing Agent delegates its authority to enter into contracts of insurance to be underwritten by the members of a syndicate managed by it to another Managing Agent or authorised insurance company in respect of business introduced by a Lloyd’s Broker named in the agreement.
- Managing Agents do not need approval from Lloyd’s to operate under a line slip.
- Once the Managing Agent or insurance company acting as the line slip lead underwriter has entered into a contract of insurance with the insured, the evidence of insurance will normally be issued by means of a MRC contract or via a certificate / policy. The format of the insurer authorised documentation will be determined within the line slip agreement.
Bulking Line Slips
- Risks are grouped and processed via Xchanging as bulk transactions;
- The Broker prepares a risk bordereau in accordance with the line slip terms and conditions and which provides the participating Underwriters with sufficient data to adhere to the Underwriting Minimum Standards;
- Premium bordereaux are produced at the intervals specified in the line slip; and
- Insurer contract documentation may either be a copy of the MRC slip or an insurance policy.
Non-Bulking Line Slips
- Individual risks are processed separately by the broker, as if they were open market;
- No risk bordereau is normally produced; and
- Premium payment terms are specified for each declaration.For both bulking and non-bulking line slips, declarations attaching to the line slips should follow the MRC (Open Market) guidelines. Further guidance can be found within the MRC (Line Slip Implementation Guide on the London Market Group (“LMG”) website.