This page explains how to apply for a Central Settlement Number (CSN), which enables an expert to collect fees via Lloyd’s Central Settlements facility (Central Settlement) for the payment of expert fees. Firms seeking a CSN as a broker, managing agent or coverholder should apply to the relevant team in Lloyd’s Admissions Department.
Who may apply?
Originally, Central Settlement was only used by brokers and managing agents, who obtained a CSN through the broker accreditation and syndicate approval process. More recently, Central Settlement has been extended and now includes experts for the collection of their fees. “Experts” may include, but are not limited to, lawyers, adjusters, surveyors, actuaries or accountants instructed by managing agents to assist in the determination of a claim or claims.
Experts may apply to Lloyd’s to be considered for a CSN, as explained below.
How do I apply?
You will need to make a written application to Lloyd’s Performance Management Directorate Claims Team, explaining and/or confirming:
- why you are requesting a CSN and what alternatives exist which you have considered;
- the anticipated frequency and volume of transactions (number and financial value).
You will also need to attach:
- an undertaking to comply with the Central Accounting Byelaw (Appendix 1, Part A) which requires two authorised signatories; and
- confirmation of managing agent sponsorship (Appendix 1, Part B)
These documents can be obtained by downloading the Procedure for Allocating Central Settlement Numbers document.
If your application is granted, Lloyd’s will notify you and pass the application to Xchanging Ins-sure Services. Any approval granted will be solely for the purpose of receiving fees arising out of work done through an expert’s appointment by a managing agent in the determination of a claim or claims.
Adherence to Lloyd’s Central Accounting Byelaw
Central Settlement works by money being transferred on the basis of pre-agreed mandates. In order to protect the market and its participants such a system requires its users to agree to comply with the rules of conduct (“the rules”), as set out in the Central Accounting Byelaw (No 20 of 1998).
Experts wishing to use Central Settlement must sign the attached undertaking to comply with the rules (Appendix 1 Part A to this form) and return it to Lloyd’s Franchise Performance Directorate Claims Team before a CSN will be authorised.
Applicants should note that, pursuant to the undertaking and the Central Accounting Byelaw, failure to comply with rules may result in withdrawal of a CSN and exclusion from the system.
Sponsorship by a Managing Agent
Your application must be sponsored by a Lloyd’s managing agent.
You should complete your application as above and pass it to the sponsoring Lloyd’s Managing Agent to be countersigned by a Compliance Officer, Claims Director or Claims Manager. (Appendix 1, Part B).
Once Lloyd’s has agreed that a CSN can be allocated to an entity, Lloyd’s will request Xchanging to allocate the CSN for the purpose of collecting fees.
Use of the CSN
A CSN allocated through this process is provided for accounting and settlement of fees only. It is important to note that it does not in any way indicate that the expert is an accredited Lloyd’s broker. It is vital that the CSN is shown accurately on every document submitted to Xchanging. Failure to do this will result in amounts being accounted or settled to the wrong account or rejected outright.
Lloyd’s reviews the use of CSN on a regular basis and may, at its absolute discretion, lapse any CSN which has not been used for a period of more than 12 months. A new application is then required to re-activate a lapsed CSN.
Entities wishing to receive payment in respect of fees via Lloyd’s Central Settlements facility (Central Settlement) for the payment of expert fees should apply in writing to Head of Claims, Lloyd’s, One Lime Street, London EC3M 7HA. Telephone +44 (0) 20 7327 1000. Fax +44 (0) 20 7327 6373.
Any queries arising out of this process should be addressed to Lloyd’s Claims Team, Performance Management Directorate on +44 (0)20 7327 1000.