Risk Details Q&A

$item->name = html_entity_decode($name);$item->name = html_entity_decode($name);

1. Are we able to use alternative heading titles of Reassureds or Reinsurers where Insurers are shown?

These alternative titles can be used within MRC headings.

2. It appears that "Risk Location" has now been dispensed with. Please can you confirm that "Situation/Territorial Scope" is being employed instead of this?

This will depend on the contract, however "Situation/Territorial Scope" is to be used for Proportional and Non-Proportional Reinsurance contracts. In addition, under heading B2 on page 33 of the MRC, it states:

"Where a contract covers values at risk in more than one country a full list of locations must be provided to (re)insurers so that they know which taxes are payable. This information may be provided either under the information section or as a referenced attachment, as appropriate.

3. Can a schedule of taxes (attached to the MRC) still be referred to under the "Taxes Payable by Insured & Administered by Insurers" heading? If we do attach it, where should it be attached, and what happens to page numbering?

The schedule can be attached under this slip heading or as a separate attachment. If it is a separate attachment, you do not need to add any page numbers to it.

4. Service of Suit Clause - can be mentioned in Law & Jurisdiction OR under conditions but not both. Why is this? Does it matter?

Wherever information in the placing document is duplicated, there is a danger of differences arising which would lead to ambiguity. This should therefore be avoided.

5. In the Conditions item of Risk Details, it is stated that bespoke wordings should be inserted here. Is this a mandatory ruling? Could we reference here 'Wording as contained herein" (or words to that effect) and add the Wording later in the document?

A bespoke wording can be referenced as long as the wording itself is contained either under the Conditions section or at the back of the document as an attachment.

6. Tax(es) payable by the insured and administered by insurer(s) is a mandatory field. How should we complete it when there aren't any?

If no taxes apply - state none applicable.

7. Where the Wording makes no reference to any Situation / Territorial Limit / Territorial Scope, how should we complete this section?

We would suggest using Territorial Limit and stating "None".

8. If, for example, a wording is attached to a Market reform Contract, does it also need to be clearly referenced within the Risk Details section?

The MRC guidance already states that, if information has been included within appendices then those appendices hsould be referenced within the Information section. It is good practice to reference any attachments to a document, and the same principle applies to other MRC attachments.

Back to Open Market