Lithuania - Compliance with policy document requirements
This article reminds managing agents of the need to ensure that all Lithuanian pre-contractual information and policy contracts comply with local regulations.
In recent months the Lithuanian regulator, the Bank of Lithuania, has scrutinised several Lloyd’s policies with respect to observance of Civil Code, the Law on Insurance and other local regulations.
Managing agents are therefore reminded to ensure that all Lithuanian pre-contractual information and policy contracts for both open market business and policies written under binding authority contracts comply with local regulatory requirements, which are available on Crystal.
In particular, managing agents are advised to use policy wordings (both open market and under binding authority agreements) that have been professionally prepared and translated, so that they truly reflect the parties’ intentions and comply with Lithuanian law. A straightforward translation of an existing wording may not necessarily meet with all legal requirements. Local professional advice should be sought where necessary.