LMA Annual Binding Authority Model Agreements
In July 2013 three new model binder wordings were released. There is one for the US, one for Canada and one for worldwide business, excluding the US and Canada. The new wordings were created to reduce the number of model wordings and endorsements in use as well as to reflect regulatory changes and the use of new technology. The new format should also be easier to use.
A binding authority agreement is the agreement between the Lloyd’s managing agent and the coverholder. The agreement is the way in which the managing agent delegates authority to the coverholder to write business on their behalf. Binding authority contracts are typically based on model binder wordings.
The proposed date that the new wordings will be used from is 1 November 2013. However, they can be used earlier provided all parties agree.
The Binding Authority QA tool is being amended to reflect the changes and a new version will be released later this year.
Further information and guidance notes on the wordings can be found on the Delegated Authority section of our website.