To ensure continuous contracts operate in a way that aligns with the Lloyd’s annual venture, it is important that the parties ensure that the mandatory provisions to be inserted into LMA 3113A are incorporated. If a different binding authority wording is used, then these mandatory clauses must still be inserted in an appropriate manner. In particular, the wording shown as Section 37A must be included without amendment, unless any amendment is agreed by Lloyd’s.
The annual transfer of the continuous binding authority to the following year of account will take place as at 1 January year (in contrast to multi-year binding authorities, which transfer on the anniversary of the inception date). This must not be changed. Continuous binding authorities that commence mid-year will also transfer at 1 January and therefore the initial year of account period could be less than a full 12 months.
DCOM will allow continuous contracts to be registered and facilitate the contract having no end date.