1. Achieving Contract Certainty
The purpose of these slides is to highlight the differences in processes required to implement and support Contract Certainty.
The focus is on the changes, they do not attempt to fully document existing processes.
They represent the typical standard process likely to be followed by most market organisations.
There will be more Detailed Guidance published towards the end of 2005.
Each block of red text following highlights a key process change that will help achievement of the contract certainty requirements .

2. Achieving Contract Certainty, Current : Lloyd’s
5. XIS Stage 1, Accounting and closing
1. Quote
3. Place Firm Order
4. Determine signed lines
6. Contract check by XIS (Stage 2)
8. XIS Lloyd’s Policy signing (if required)
7. Broker sends Evidence of Cover to client
Key points
Documents current typical process at a high level
Recognise that there are process variants not recognised here
Created to show impact of difference when CC principles applied
2. Broker & insurer check slip
Process: always takes place
Process: does not always take place

3. Achieving Contract Certainty, Proposed Process : Lloyd’s
5. XIS Stage 1, Accounting and closing
Signed lines to underwriters within 30 days
1. Quote
3. Place Firm Order
4. Determine signed lines
6. Contract check by XIS (Stage 2)
8. XIS Lloyd’s Policy signing (if required)
using CC checklist & Lloyds compliant submission
Single broker submission to XIS
by inception
- Checking 100%
- QA Tool-based
** CC achieved and recorded **
No post inception overplacing
7. Broker sends Evidence of Cover to client
Animations;
Click 1 – Quality Check
Insurers may wish to outsource technical checking to a service provider and, if so, insurers will pass submissions to that party for checking.
The aim will be to perform all necessary contract certainty checks before formally committing to the contract
using the contract certainty checklist and
any internal requirements; for example the elements of the Lloyd’s published checking requirements - see - relevant to contract certainty.
Click 2 – Insurer ensures that the submission fully and clearly specifies the wording and conforms to the contract certainty checklist, and do not formally commit to the contract unless this is the case
Click 3 - Wherever possible the calculation method should be explicit on the submission, subject to client wishes, allowing the insurer to determine how their line will be calculated. Brokers to calculate signed lines by inception
Brokers and insurers will not take part in post-inception over-placing
Click 4 – Contract certainty is achieved by the complete and final agreement of all terms (including signed lines) between the insured and insurers before inception
Click 5 – Broker will make a single submission to XIS. XIS handle handover to stage 2. (This is subject to commercial arrangements with XIS.
XIS will complete Stage 1 and Stage 2, on a single fully claused document provided once by the broker. (This is subject to commercial arrangements with XIS.
Stage 2 always completed for Lloyds business
Click 6 – Broker will routinely provide signed lines to carriers within 30 days; for bureau business this will normally be via de-linked closings. It is recognised that insurers would prefer notification sooner and the aim, over time, will be to reduce this timescale
Click 7 - XIS checking 100% initially on Lloyd’s till quality is proven and can move to sampling based approach. (This is subject to commercial arrangements with XIS.
Click 8 – Brokers and insurers will ensure that appropriate evidence of cover, including security, is issued within 30 days of inception.
2. Broker & insurer check slip
Timing now within 30 days of inception
with all terms & the full wording**
Early Check using QA Tool
& CC Checklist
Process: does not always take place
Process: always takes place
Red text/line indicates change from current process
** As per CC checklist

4. Achieving Contract Certainty Current : Bureau Company
5. XIS Stage 1, Accounting and closing
1. Quote
3. Place Firm Order
4. Determine signed lines
6. Contract check by XIS (Stage 2)
8. XIS Lloyd’s Policy signing (if required)
Bureau
7. Broker sends Evidence of Cover to client
Key points
Documents current typical process at a high level
Recognise that there are process variants not recognised here
Created to show impact of difference when CC principles applied
Very similar to Lloyds bureau business, only change that policy optionally produced by bureau is not a Lloyd’s policy
2. Broker & insurer check slip
Process: always takes place
Process: does not always take place

5. Achieving Contract Certainty, Proposed Process : Bureau Company
5. XIS Stage 1, Accounting and closing
Signed lines to underwriters within 30 days
1. Quote
3. Place Firm Order
4. Determine
sign lines
6. Contract check by XIS (Stage 2)
8. XIS Lloyd’s Policy signing (if required)
using
CC checklist compliant submission
Single broker submission to XIS
Bureau
by inception
- Checking X%
Company
Bureau checks
** CC achieved and recorded **
No post inception overplacing
7. Broker sends
Evidence of Cover to client
Animations
This highlight changes between Lloyds bureau and company market bureau.
Click 1 – Quality Check
Insurers may wish to outsource technical checking to a service provider and, if so, insurers will pass submissions to that party for checking.
The aim will be to perform all necessary contract certainty checks before formally committing to the contract using
the contract certainty checklist and
any internal requirements relevant to contract certainty.
Click 2 - X% of company business will be checked by bureau. This will be agreed on bi-lateral basis between company market & bureau. (This is subject to commercial arrangements with XIS. )
Click 3 - Internal company checks at XIS for company market business. (This is subject to commercial arrangements with XIS & IUA.)
2. Broker & insurer check slip
Timing now within 30 days of inception
with all terms & the full wording**
Early Check using internal *
& CC Checklist
Process: does not always take place
Process: always takes place
Red text/line indicates change from current process
* Company’s internal checking procedures
** As per CC checklist

6. Achieving Contract Certainty Current : non Bureau Company
5. Accounting and closing
1. Quote
3. Place Firm Order
4. Determine signed lines
8. Company Policy production
(if required)
7. Broker sends Evidence of Cover to client
Key points
Documents current process at a high level
Not intended to be comprehensive
Created to show impact of difference when CC principles applied
2. Broker & insurer check slip
Process: always takes place
Process: does not always take place

7. Achieving Contract Certainty, Proposed Process : non Bureau Company
5. Accounting and closing
Signed lines to underwriters within 30 days
1. Quote
3. Place Firm Order
4. Determine
sign lines
8. Company Policy production
(if required)
using
CC checklist compliant submission
by inception
** CC achieved and recorded **
No post inception overplacing
7. Broker sends Evidence of Cover to client
Animations;
Click 1 – Quality Check
Insurers may wish to outsource technical checking to a service provider and, if so, insurers will pass submissions to that party for checking.
The aim will be to perform all necessary contract certainty checks before formally committing to the contract
using the contract certainty checklist and
any internal requirements relevant to contract certainty.
Click 2 – Insurer ensures that the submission fully and clearly specifies the wording and conforms to the contract certainty checklist, and do not formally commit to the contract unless this is the case
Click 3 - Wherever possible the calculation method should be explicit on the submission, subject to client wishes, allowing the insurer to determine how their line will be calculated. Brokers to calculate signed lines by inception
Brokers and insurers will not take part in post-inception over-placing
Click 4 – Contract certainty is achieved by the complete and final agreement of all terms (including signed lines) between the insured and insurers before inception
Click 5 – Broker will routinely provide signed lines to carriers within 30 days; for bureau business this will normally be via de-linked closings. It is recognised that insurers would prefer notification sooner and the aim, over time, will be to reduce this timescale
Click 6 – Brokers and insurers will ensure that appropriate evidence of cover, including security, is issued within 30 days of inception.
2. Broker & insurer check slip
Timing now within 30 days of inception
with all terms & the full wording**
Early Check using Checklist &
internal procedures
Process: does not always take place
Process: always takes place
Red text/line indicates change from current process
** As per CC checklist