1. Single Claims Agreement Party - SCAP Simon Cooper

2. Single Claims Agreement Party
Allows the London slip lead to agree claims for all slip participants subscribing to SCAP wherever they are
Applicable to all classes but not
Binders
Proportional Reinsurance

3. Single Claims Agreement Party
Inter-Underwriter agreement – LMA9150
Joint Initiative between Corporation of Lloyd’s, LMA, IUA and LIIBA
Allows Claims to be agreed by a single London Market underwriter on behalf of participating underwriters contracting on the same slip and on the same terms.
Participation is voluntary at the time of contracting
Governing Law

4. SCAP Leader Lloyd’s or London Market Company underwriter:
For the purposes of these Arrangements the SLIP LEADER must be: (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with permission to effect and/or carry out contracts of insurance; or (b) a Member of Lloyd’s.
Overseas companies may not be SCAP leader but can be SCAP followers

5. Claims Outside SCAP
Claims in excess of £250,000 – the Threshold Amount
Complex or Controversial claims
Claims subject to Dispute Resolution Proceedings
Other factors

6. The Threshold Amount When is value assessed? What is valued?
Application of Exchange rates
Reassignment

7. Example of Application
JOPLIN SYNDICATE
Lead
£1m xs £1m
HOLDING COMPANY (UK)
500k xs 500k
BIG BROTHER (US)
250k xs 250k

8. Loss £1.2m £200k Loss SCAP applies £500k Loss SCAP does not apply
Threshold exceeded
£250k Loss
Overseas lead
Deductible
£250k
£1.2m

9. Circumstances which may give rise to a Claim
Flexible approach
Initial notification
Subsequent reports

10. Complex Claims
Allegations of fraud or breach of duty to make a fair presentation
Allegations of criminal behaviour
Allegations of regulatory breach
Serious injuries, fatalities and periodic payments
Clash cover
Claims for punitive damages or under 13A IA15

11. Other Factors Multi section slips Multiple slip policies Lineslips
Some verticalised placements

12. Verticalisation MRC Signing 2 Signing 1 SCAP lead Signing 7 o/s
FDO
Signing 6

13. Role of the Leader Decide if claim within SCAP
Act in good faith and best interests of SCAP followers
Comply with sanctions and other regulatory requirements
Retain documents for 7 years
May delegate
No liability to non-SCAP parties

14. Excluded Settlements
Excluded settlements
Ex Gratia
Commutation

15. Disputes Informal discussion Mediation Arbitration
Limited liability - £500,000 in aggregate any one SCAP claim

16. Role of Broker Initial notification to Leader
Advising SCAP followers during claims process
Provide Lead with details of following SCAP market

17. Termination of SCAP Criteria no longer met Threshold Amount
Dispute resolution
Nature of the claim
Broker decision
Insolvency
Authorisation for relevant class of business withdrawn
Authorisation by Lloyd’s withdrawn