Electronic Market Reform Contract Endorsement (e-MRCE) - Evidence of agreement FAQ  
  
--------------------------------------------------------------------------------
 
Click on each question to take you to the answer...  
 
   
--------------------------------------------------------------------------------
    
  1. Once the endorsement has been agreed, what do I as a broker send to the client? With e-MRCE I may end up with multiple signed copies of the MRCE and even some email messages indicating agreement from some insurers. Do I send all this to the client – very messy? Will these be Insurer Authorised Documents?   
   
--------------------------------------------------------------------------------
    
  2. You say that the broker can send a BID if they prefer. What is the guidance here? What is best?    
   
--------------------------------------------------------------------------------
    
  3. Will I see endorsements if I am not an Agreement Party?    
   
--------------------------------------------------------------------------------
    
  4. Is the use of email for the agreement of contract changes as valid as a scratch on paper?    
   
--------------------------------------------------------------------------------
    
  5. Won't we end up sending more documentation to the end client with all these emails flying around?    
   
--------------------------------------------------------------------------------
    
  6. What do you need to give XIS to evidence insurer agreement to an endorsement?    
 
--------------------------------------------------------------------------------
1. The principle established with the MRC is that the broker may prepare a signed line schedule summarising the security details and include this when sending the MRC to the client. In the case of endorsements brokers may similarly prepare a schedule summarising the agreement of the MRCE. This will constitute a BID.
 Top
--------------------------------------------------------------------------------
 
2. It is anticipated that brokers will seek to standardise across different markets the way they handle endorsements and how they evidence these to their clients. As electronic processing becomes more dominant, market practices that were based around the assumption of paper documents being walked around the market may most likely change.
 Top
 --------------------------------------------------------------------------------
 
3. Typically not, unless you have requested the broker to send you notifications about contract changes.
It is recommended that initially notifications to non-agreement parties are limited to those included on listings and who have requested them specifically.
The e-MRCE guidelines include details on the sending of notifications which is of course a simple matter using electronic processes.

 Top
 --------------------------------------------------------------------------------
 
4. Yes.
 Top
 --------------------------------------------------------------------------------
 
5. Clients generally do not require evidence of agreement. It will therefore be a simple matter for the broker to produce a clean version of the MRCE to send to the client.
 Top
 --------------------------------------------------------------------------------
 
6. Xchanging will accept all forms of agreement resulting from the e-MRCE processes.
 Top
 --------------------------------------------------------------------------------
 
Steve Hulm provides content for this page

Back to e-MRCE