Premium reporting – A standard for coverholders User Guide
Contents
1. Type of Information Field Description Conditions The country where the risk is located Lloyd s risk locator tool can be used to help confirm the location of the risk http www lloyds com The Market Operating at Lloyds Resources Risk_ locator Some risks may need to be split across a series of rows of Country detail where elements of the risk are located in more than Mandatory for all transactions one country It is recommended that the ISO 3166 2 letter country codes Location are used Further details can be found here of http www iso org iso country_codes iso_ 3166 code lists e Risk nglish_country names and code elements htm If the risk is located in a country with sub divisions for example states then the sub division in which the risk is located State Province Mandatory for all countries which include states and Territory Canton etc Some risks may need to be split across a series of rows of provinces detail where elements of the risk are located in more than lone country sub division Type of Information Field Description Conditions Transaction Transaction Type The type of transaction being reported for example Original premium Additional premium Return premium Additional premium for brokerage or commission Additional premium for fees or expenses Return premium for fees or expenses Return premium for brokerage or commission Ma2. Insured or Reinsured if Reinsurance First Name The first name of the insured Where the name of the insured cannot be split into first and last names the full name of the insured should be given in the Full name last name or company name field Required for all insurance where the insured is an individual Full Name last name or company name The name of the company or the last name of the individual insured or for reinsurance the name of the insured Where the name of the insured reinsured is not known a code to uniquely identify them should be supplied instead Mandatory for all transactions State Province Territory Canton etc If the country in which the insured reinsured is resident if they are a private individual or has its main operating address if it is a corporate body is a country with sub divisions such as states then the sub division Mandatory for all countries which include sub divisions Country The country in which the insured is resident if they are a private individual or has its main operating address if itis a corporate body For a reinsurance contract the country in which the ceding insurer s office is situated For a global or multi national policy the country in which the insured s head lor main office is situated For a master policy the country in which the master policyholder is situated If there are multiple parties with an interest in the risk
3. Information must be provided to identify the class of business One or more of the following must be provided e A binding authority contract will include one or more sections which specify the class of business for which the coverholder has been given authority to write risks The section and therefore class of business to which the risk relates should be reported e To ensure the class of business is correctly understood please provide a textual description of the class of business in addition to the section number e Lloyd s classifies business using risk codes The risk code which relates to the transaction should be specified if known Lloyd s references The following information is needed to process transactions but this does not have to be provided by the coverholder e The unique reference assigned to the London broker e The year of account The London broker needs to ensure that these references are provided if they cannot be deduced from the UMR The broker may choose to do this on the bordereaux or on a separate accompanying document Where this information is known by the coverholder they may choose to provide this as part of their submission TRANSACTIONS References We need to know a unique reference which has been allocated to a risk so that we can consider different transactions relating to the same risk e For all risks a unique reference such as the certificate ID must be provided e Where there are a
4. Commission amount e Net premium to London e Settlement currency Recommended layout The recommended layout showing all fields can be found at the end of this document Mandatory fields The standard is comprised of a series of mandatory fields which must always be completed The mandatory fields are as shown below The fields in yellow are conditional and are mandatory only under certain conditions e A reference for the binder contract must always be given this could be the UMR or the agreement number or both if known e The class of business must always be given this could be the section number from the binder contract a written description of the class of business or the Lloyd s risk code These columns may either be completed on the first row as headers or on each row Mandatory Fields are shown in red Conditional Fields are shown in yellow these are mandatory under certain conditions Insured or Reinsured if Risk Details Location Reinsurance Trans Reporting Type Coverholder Period Ins Type A recommended layout showing all conditional and mandatory fields can be found at the end of this document Transaction Original Currency Settlement Currency HEADER FIELDS The following fields will generally be the same for the whole report and may be provided once at the top of the report or be repeated on each row If any other fields in the submission are definitely the same for every single transaction i
5. Lloyd s broker s number and a series of characters The UMR should not contain any spaces hyphens slashes or other punctuation it should only contain the numbers 0 9 and the letters A Z Maximum length 17 characters Mandatory for all submissions where known Agreement No Any other reference by which the binder agreement is known If the UMR is not known then the agreement number should be stated Reporting Period Start Date The start date for the reporting period being submitted Preferred Reporting Period End Date The end date of the reporting period being submitted As a minimum the month and year of the reporting period must be given Mandatory for all transactions to include the month and year as a minimum Type of Field Description Conditions Information The number of the section from the binding authority One or more of the Lloyd s risk code binder section Section No contract which authorises this class of business to be number or a narrative description of the class of business written must be given One or more of the Lloyd s risk code binder section Class of Business A description of the class of business number or a narrative description of the class of business must be given Risk Code Lloyd s categorises information on risks and premiums To be supplied where known using a series of risk codes If you are familiar with these then please sp
6. located US surplus lines The country in which the surplus lines broker is located It is recommended that the ISO 3166 2 letter country codes are used Further details can be found here Mandatory for all risks filed in the US which are classified as Country US surplus lines where the surplus lines broker is not located http www iso org iso country codes iso 3166 code lists e nglish_country names and code elements htm in the US 27 Type of Information Field Description Conditions The NAIC company code of the ceding US insurer that is the US reinsured If there are multiple NAIC codes then the premium should be split over each code and thus appear on US different rows If the cedent does not have a NAIC code Reins rance NAIC Code then the FEIN for the cedent must be specified Mandatory for business classified as US Reinsurance Further details can be found here http www naic org index_industry htm Total Premium Total premium sum of instalments The total gross premium which is being paid that is the sum of premiums being paid as instalments before any additions or deductions This should be expressed in the original currency This should exclude any terrorism premium such as US TRIA French GAREAT or Australian ATIA or fees which are being shown as separate transactions see comments re gross premium Any premiums for endorsements should be excluded Required where a transa
7. mandatory under certain conditions further details are given above e Itis recommended that columns which are not required are hidden e Some fields may be the same for all records these can either be repeated on each record or shown once on the first record e Whilst two rows of fields are shown below it is intended all fields would appear as one record row on the spreadsheet for each transaction e More than one tax may apply to one premium and this is difficult to show in a spreadsheet format It is suggested that either the tax columns are repeated for each tax or each tax is shown on a separate row in the spreadsheet Where separate rows are used care must be taken to ensure it is clear that different taxes are being shown and to avoid double counting of the original premium e The intermediary columns may be repeated for each intermediary being reported e Itis recommended that the total number of records transactions is stated and each row transaction is given a unique number to aid with any queries e Itis recommended that totals are given for gross and net premium commission brokerage and tax amounts by key criteria for example binding authority contract agreement number or UMR type of insurance direct or type of reinsurance Lloyd s risk code settlement currency original currency location of risk country location of risk country sub division for example state province US classification year of account transaction type s
8. the coverholder This information can be provided in either the Premium g y commission and the brokerage bordereau or in an accompanying document from expressed in the original currency the London broker 39 Type of Field Description Conditions Information Where the London broker has received premium in the original currency and needs to convert this to a settlement currency the settlement currency This must be one of the following currencies AUD Australian Dollar CAD Canadian Dollar DKK Danish Krone EUR Euro Required for all transactions where the London Final HKD Hong Kong Dollar broker is settling in a different currency to that Net which the coverholder paid them P i Settlement Currency NZD New Zealand Dollar remium f This information can be provided in either the continued BOR Norwegian Krone bordereau or in an accompanying document from GBP Pound Sterling ZAR Rand SGD Singapore Dollar SEK Swedish Krona CHF Swiss Franc USD US Dollar JPY Yen It is recommended that the currency code be used the London broker 40 Type of Field Description Conditions Information Picasa AA cei Required for all transactions where the London 9 y broker is settling in a different currency to that Rate of Exchange For example if the original currency was Which the coverholderpaidithem Se a gna This information can be provided in either the ring Pog bordereau or in an accompanying d
9. PREMIUM REPORTING A STANDARD FOR COVERHOLDERS USER GUIDE 28 OCTOBER 2010 LLOYDS Introduction The purpose of this document Why have coverholder premium reporting standards What does this mean for me as a coverholder What should do next Providing information to London Providing information to Lloyd s local offices Providing information to local tax authorities Background Why is information on premiums needed in London What is the standard Recommended layout Header Fields Coverholder Contract Reporting period Type and class of business Lloyd s references TRANSACTIONS References Insured or reinsured if reinsurance Risk details Location of the risk Transaction type Transaction in the original currency Transaction settlement currency Instalments US Surplus lines broker details Taxes levies and para fiscal fees Other fees and deductions Other intermediaries Notes Trailers and Totals Detail to be added by the broker in London Brokerage Final net premium Field content and conditions for completion Details to be added by the broker in London Premium reporting standard recommended layout all fields A HRA HK WWWWWW Ww DODD D OD oO OONNNN e ee ee SS es ks wWOwww od0o oO 14 14 14 15 39 43 INTRODUCTION The purpose of this document This document provides guidance for each of the fields required the expected content and the circumstances under which field
10. T or Australian ATIA then this needs to be shown as a separate transaction for example on a separate row on the spreadsheet For example Gross premium paid this time is 100 of which 20 is TRIA This would be shown as two separate transactions one for 80 and one for 20 Class of business and or risk code fields should be used to identify the type of transaction For further information on terrorism premiums please see section 4 10 on terrorism in Lloyd s risk code guidance notes http Awww lloyds com The Market Operating at Lloyds Resources Risk codes If you are unable to separate terrorism premium as a separate transaction row then the gross and net premium columns should include the terrorism amount and in addition the terrorism amount should be shown in the terrorism premium column Mandatory for all transactions 21 Type of Information Field Description Conditions If you are unable to provide the terrorism premium such as UK Pool Re US TRIA French GAREAT or Australian ATIA To contain terrorism premium such as UK Pool Re US TRIA Terrorism Premium terr ar adi Jsa h Gair transaction then this French GAREAT or Australian ATIA when this cannot be FOTS Spar displayed as a separate transaction should instead be shown in this column The commission taken by the coverholder expressed as a rena eae of the gross premium in the original currency This may n Gommission include commis
11. any additions or deductions made to these is needed to ensure that the correct monies move between coverholders brokers and Lloyd s syndicates Lloyd s has a responsibility to report to various regulators and tax authorities around the world and to pay taxes on behalf of the Lloyd s market To ensure this is done correctly Lloyd s is reliant on market participants including coverholders to provide key details on premium transactions taxes and risks What is the standard The standard is the minimum information required from coverholders when reporting premiums being paid into the Lloyd s market The standard includes a series of mandatory fields these must always be reported In the recommended layout below these are shown in red The standard includes a series of conditional fields which are mandatory under certain conditions Whether or not these are mandatory will usually be dependent on the territory and or class of business however there may be other factors to consider In the recommended layout below these are shown in yellow The following fields are mandatory e Coverholder name e A reference for the binder contract e The reporting period e The class of business e Type of insurance direct reinsurance etc e Certificate reference e Re insured name and country e Risk inception and expiry date e Location of risk country e Type of transaction e Original currency e Gross premium paid this time e Commission e
12. ce and reinsurance worldwide so it is important to consider this when defining risk location e What class of business is being written For direct insurance different classes of business may have different regulatory risk locations e Where is the insured reinsured located The location of the insured or reinsured can dictate regulatory risk location for certain classes of business e What is the physical location of the insured risk The geographical location of the risk dictates regulatory risk location for certain classes of business Lloyd s risk locator tool can be used to help determine the risk location http www lloyds com The Market Operating at Lloyds Resources Risk_ locator Lloyd s tax and regulatory tool Crystal can be used to determine the level of detail needed http www lloyds com The Market T ools and Resources Tools E Services Crystal Transaction type The type of transaction such as original premium additional premium or return premium must be stated Transaction in the original currency Information about the premium transaction is vital to the report to ensure that the correct monies are moved between parties and reported to the various regulators to ensure the correct taxes and levies are paid and to ensure correct trust funding The following information must always be provided e The currency in which the transaction was originally paid by the insured or reinsured e The gross premium which has bee
13. ct insurance risks filed in the US 26 Type of Information Field Description Conditions The name of the intermediary who has filed details of the insured risk with a US state insurance department or authority Nam Mandatory for all risks filed in the US which are classified as ame If taxes and filings are made in more than one state that the US surplus lines details of all surplus lines brokers must be given on different rows for each state The surplus lines licence number of the intermediary who ences F a Licence No has filed details of the insured risk with a US state insurance Mandatory Tor all risks filed in the US which are classified as US surplus lines department or authority The unique transaction number issued by the New Jersey Surplus New Jersey SLA No surplus lines broker Mandatory for all transactions for risks filed in the US in the Lines This should be a unique number which is 14 characters state of New Jersey which are classified as US surplus lines Broker long Preferred for all risks filed in the US which are classified as Address The address at which the surplus lines broker is located US surplus lines Mandatory for all risks filed in the US which are classified as State The state in which the surplus lines broker is located US surplus lines f Preferred for all risks filed in the US which are classified as Zip Code The zip code at which the surplus lines broker is
14. ction is an instalment and one ina series of premium payments 28 Type of Information Field Description Conditions The fiscal code allocated to an organisation or individual by re oe f the Italian tax authority for the enterprise or individual who Ihe mavoun policyholder S a code is required where the is insured or teins red insured is located in Italy for insurance premiums paid on personal accident and life risks Fiscal Code or i Further details can be found here be pe POES r company registration http www1 agenziaentrate it inglese glossary index_glossa The individual or company policyholder s fiscal code IS code Py Hime required where the insured is located in Italy for insurance fy ns contracts except third party liability and assistance contracts In other territories the company registration number should ma aes the company registration code is Insured pe given l or Reinsured Further The full address for the insured or for reinsurance the full Details address of the reinsured This should be where the Address insured reinsured is resident if they are a private individual or has its main operating address if it is a corporate body Used for reporting fire brigade charges in Spain Also required in Italy and South Africa Mandatory for insured or reinsured where the country of origin is Italy South Africa or Spain Postcode Zip Code or Similar The post code zip c
15. cy If appropriate this must also be stated in the currency in which the amounts are being settled to the Lloyd s syndicate If this is different to the original currency then the rate of exchange and the final net premium to the Lloyd s syndicate in the settlement currency must be given If Lloyd s is not receiving 100 of the final net premium then the proportion of the final net premium which is for Lloyd s should be stated Where the London broker receives a premium bordereau and settlement in the original currency and needs to covert this to a settlement currency then the broker should also provide the settlement currency and rate of exchange 14 FIELD CONTENT AND CONDITIONS FOR COMPLETION Type of Information Field Description Conditions Coverholder Binder and Report Details Coverholder Name The name of the coverholder who has created the submission Mandatory for all transactions Coverholder PIN The unique identifier for the coverholder branch which has been allocated by Lloyd s This can be found in Lloyd s Atlas system The coverholder PIN is a 9 digit number Further information on Atlas can be found here http www lloyds com The Market T ools and Resources Tools E Services Atlas Should be stated if known Unique Market Reference UMR The unique reference for the binding authority contract allocated by the Lloyd s market All UMRs start with B followed by the
16. d Quebec Mandatory in Canada for automobile business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories 32 Type of Information Field Description Conditions The total amount of the sum insured expressed in the sum insured currency This should be the sum insured which is Mandatory where the risk or insured reinsured is located in most applicable to this binder Australia Papua New Guinea Switzerland This is required for Mandatory for motor business in Hong Kong Terrorism reporting obligations in Australia Motor business in Hong Kong Mandatory for home owner business in Kentucky and _ As part of the Policy Register that Lloyd s are required preferred for other policies where the risk is located in to maintain to meet Papua New Guinea Legislative Kentucky Sum requirements Insured Sum Insured Amount Where the risk or insured are located in Switzerland Mandatory for Ontario liability business earthquake coverage continued Requirea In Kentucky for determination ot mine in British Columbia and Quebec Mandatory in Canada for subsidence on homeowner policies Required in Canada for Ontario liability business and for earthquake coverage in British Columbia and Quebec Also required in Canada for automobile business for the following provinces Alberta New B
17. domiciled in different countries it is necessary to designate the country most appropriate in the circumstances as the country of origin It is recommended that the ISO 3166 2 letter country codes are used Further details can be found here http www iso org iso country_codes iso_ 3166 code lists e nglish_country names and code elements htm Mandatory for all transactions Type of Information Field Description Conditions If this is a renewal that has previously been placed under a Lloyd s binding authority then this should be marked as a renewal If this is new business either completely new to you or you Type of Business nave not placed this business under a Lloyd s binding Mandatory for all transactions where the risk or the insured authority previously then this should be marked as new i New or Renewal are located in Ireland Recommended content New Risk Renewal Details Risk Inception Date The inception date of the risk the date on which coverage starts Mandatory for all transactions Where the period of coverage cannot be expressed as dates details should be provided in the Period of Cover Narrative field Risk Expiry Date The expiry date of the risk the date on which coverage ends Mandatory for all transactions Where the period of coverage cannot be expressed as dates details should be provided in the Period of Cover Narrative field
18. e tax amounts etc as relevant by e Binding authority contract agreement number or UMR e Type of insurance direct or type of reinsurance e __Lloyd s risk code e Settlement currency e Original currency e Location of risk country e Location of risk country sub division for example state province e US classification e Year of account e Transaction type e Surplus lines broker e NAIC code e Tax levy fee type e Year of account 13 DETAIL TO BE ADDED BY THE BROKER IN LONDON The following information will typically be provided by the broker in London Such information does not need to be added to the bordereaux and will often be included in an accompanying London Premium Advice Note LPAN but columns have been provided The broker and the coverholder may agree that this is also completed by the coverholder in which case the broker will typically need to provide the coverholder with this information in advance In some cases the information may be able to be deduced from information already provided and so does not need to be supplied again Brokerage The broker in London will need to specify the brokerage being charged as a percentage of the gross premium paid by the insured and as an amount Final net premium The broker must state the final premium net of any deductions made by the coverholder and their own brokerage that is the net premium to London minus any brokerage This must be stated in the original curren
19. e gross premium Mandatory for all t ti Currency London andatory for all transactions continued If you are unable to separate terrorism premium as a separate transaction row then the gross and net premium columns should include the terrorism amount and in addition the terrorism amount should be shown in the terrorism premium column If this transaction is an instalment this should be the net amount of this instalment 23 Type of Information Field Description Conditions The currency in which the coverholder is paying premiums to London This may be the same or different to the original currency This will typically be one of Lloyd s settlement currencies AUD Australian Dollar CAD Canadian Dollar DKK Danish Krone EUR Euro HKD Hong Kong Dollar NZD New Zealand Dollar NOK Norwegian Krone Transaction Settlement Settlement Currency GBP Pound Sterling Mandatory for all transactions Currency ZAR Rand SGD Singapore Dollar SEK Swedish Krona CHF Swiss Franc USD US Dollar JPY Yen It is recommended that the ISO 4217 3 letter currency code be used More details can be found here http www iso org iso support fags fags widely used stand ards widely used standards other currency codes currenc codes list 1 htm 24 Type of Information Field Description Conditions The rate of exchange between the original and settlement currency Rate of Exchange For example if the o
20. e shown Required for all taxes levies and Para fiscal charges If the tax or levy is a percentage then the percentage rate at which the tax is applied Required for all taxes levies and Para fiscal charges where the tax is a percentage If the tax or levy is a fixed rate then the fixed rate at which Required for all taxes levies and Para fiscal charges where Fixed Rate the tax is applied the tax is a fixed rate or a multiple of a fixed rate The number of items to which the fixed rate has been Multiplier applied For example if this is the number of vehicles and Required for all taxes levies and Para fiscal charges where p the number of vehicles is 5 then the multiplier is 5 the tax is a multiple of a fixed rate The total tax liability for a specific tax against the premium Amount amount being reported The amount should be expressed Required for all taxes levies and Para fiscal charges in the original currency of the premium Administered By The party responsible for settling the tax with the relevant tax authorities Required for all taxes levies and Para fiscal charges Payable By The party bearing the economic cost of the tax Required for all taxes levies and Para fiscal charges 36 Type of Information Field Description Conditions A description of the fee or other deduction or addition being Description made to the premium Required for any fee transaction Oth
21. e with the London broker and Lloyd s syndicate the means via which they will provide information and which if any of the conditional fields need to be reported Providing information to Lloyd s local offices In some territories there is a requirement for the coverholder to report directly to the local Lloyd s office Such reporting is often not specific to premium information but may incorporate information on risks and claims or require the provision of certificates or other documents Where coverholders are reporting direct to the local Lloyd s office they are encouraged to discuss information requirements with such offices Providing information to local tax authorities In some jurisdictions there is a requirement for the local coverholder to report and pay taxes direct to authorities coverholders are expected to contact the local tax authorities and agree any such reporting and payment with them BACKGROUND Coverholders are delegated authority to write risks on behalf of Lloyd s syndicates via binding authority contracts Part of the contractual agreement is that the coverholder regularly reports the premiums they have collected to the Lloyd s syndicate Why is information on premiums needed in London Brokers and Lloyd s syndicates require certain information so they can keep track of risks written and ensure these are within the terms of the binding authority agreement Information on premium transactions together with
22. ecify the risk code for this transaction http www lloyds com The Market Operating at Lloyds Resources Risk_ codes Coverholder Binder and The type of insurance or re insurance R Detail Direct eport etalls Type of Insurance Facultative Reinsurance Mandatory for all transactions continued Treaty Reinsurance Excess of Loss London Broker Ref The unique reference for the broker in London which has been assigned by Lloyd s It is not mandatory for the coverholder to provide this information however it must be provided by the broker if it cannot be deduced from the UMR This information can be provided in either the bordereau or in an accompanying document from the London broker If this information is known by the coverholder it is recommended that it is provided Year of Account Lloyd s year of account in which the binding authority was incepted It is not mandatory for the coverholder to provide this information however it must be provided by the broker if it cannot be deduced from the UMR This information can be provided in either the bordereau or in an accompanying document from the London broker If this information is known by the coverholder it is recommended that it is provided Type of Information Field Description Conditions Reference Certificate Ref The unique reference for the risk usually the certificate number Mandatory for all transactions
23. er Fee Deduction or Addition The total amount being added or deducted Amount Required for any fee transaction 37 Type of Information Field Description Conditions Any of the following intermediaries who are involved in the Role The role of the intermediary transaction should be specified Open market correspondents producing brokers or local brokers Any of the following intermediaries who are involved in the Name The name of the intermediary transaction should be specified Open market correspondents producing brokers or local brokers Any reference numberaliocated to the intermediary for Any of the following intermediaries who are involved in the Reference No iets lathe open market correspondent number y transaction should be specified Open market l d P p P correspondents producing brokers or local brokers ntermediary NB This Any of the following intermediaries who are involved in the information Address The address of the intermediary transaction should be specified Open market should be correspondents producing brokers or local brokers repeated State province The state province territory or canton in which the RATER E Sh aera aoe inthe Tor gach territory canton etc fntermediary is located correspondents dia brokers a local brokers intermediary i l Postcode Zip Code or The postcode or zip code at which the intermediary is Any of the following intermediaries who a
24. es need to be reported on http www lloyds com The Market Tools and Resources Tools E Services Crystal 11 Reporting taxes It should be noted that it is possible for a number of taxes in the same or different jurisdictions to be applicable to a premium As it is difficult to show many taxes against one premium transaction in a spreadsheet format it is suggested that either the tax columns are repeated for each tax or that each tax is shown on a separate row in the spreadsheet Where separate rows are used care must be taken to ensure it is clear that different taxes are being shown and to avoid double counting of the original premium The following information needs to be provided for each tax The jurisdiction for example UK The type of tax for example premium tax The amount of premium which is taxable The means by which the tax has been calculated for example any fixed rates or multipliers The amount of tax Whose responsibility it is to administer and to pay the tax For taxation headings the term payable by refers to the party bearing the economic cost of the tax The term administered by refers to the party responsible for settling the tax with the relevant tax authorities In the recommended layout shown below the tax levy or para fiscal charges block of columns should be repeated for each applicable tax 12 Other fees and deductions Where fees have been charged or deductions made from the ori
25. for Ontario liability business earthquake coverage in British Columbia and Quebec Mandatory in Canada for automobile business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories 34 Type of Information Field Description Conditions The aeductiole or xe OES OE the policy Required where the risk or the insured or reinsured are This is required where the risk or insured are located in Ocatea Im AUSIrANE Australia to meet NCPD reporting obligations to APRA and Rees f also for Lloyd s syndicates to complete reports relating to Required for Ontario liability business earthquake coverage terrorism in British Columbia and Quebec Mandatory in Canada for automobile business for the following provinces Alberta New Deductible Amount Required in Canada for Ontario liability business and for Brunswick Newfoundland Nova Scotia Ontario Prince earthquake coverage in British Columbia and Quebec Also Edward Island and Quebec and for the following territories required in Canada for automobile business for the following Yukon Nunavut and the Northwest Territories provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories Deductible The basis on which losses wou
26. ginal premium collected which are not commission or formal taxes or levies then these must be reported A description and the amount of the fee should be given It is recommended such transactions are shown as separate transactions on different rows on a spreadsheet Other intermediaries Where other intermediaries for example open market correspondents producing brokers and local brokers have been involved in the transaction this may mean that additional taxes or regulations apply The details of intermediaries should be provided where necessary including their e Role e Name e Any reference numbers or licence numbers e The address including the state province territory etc where appropriate the post zip code and the country The details of the coverholder and the London broker do not need to be provided as these are already known in London Further details of open market correspondents in Canada can be found here http www lloyds com The Market Directories Open Market Correspondents directory letter a Notes An additional column has been included in the recommended layout for any additional information you wish to provide Trailers and Totals For clarity it is suggested that the following information is included in the submission e Arownumber on each record transaction as a unique identifier should a query arise e The total number of records transactions e Totals for gross premium net premium commission brokerag
27. group of risks under one policy please provide the policy or group reference in addition to the individual certificate number Insured or reinsured if reinsurance We need to know the name of the insured or for reinsurance the details of the reinsured This may be the name and address of a firm practice sponsoring employer company life assured or policyholder We also need to the know the country in which the insured is resident if they are a private individual or has its main operating address if it is a corporate body The country of origin is e For a reinsurance contract the country in which the ceding insurer s office i e the reinsured is situated e For a global or multi national policy the country in which the insured s head or main office is situated e Fora master policy the country in which the master policyholder is situated If there are multiple parties with an interest in the risk domiciled in different countries it is necessary to designate the country most appropriate in the circumstances as the country of origin For different territories and classes of business different levels of detail are needed however the country is always required The appropriate level of detail should be provided as advised within Lloyd s tax and regulatory tool Crystal http Awww lloyds com The Market Tools and Resources T ools E Services Crystal Risk details Lloyd s has a responsibility to report to a number of reg
28. iption Conditions Policy or Group Ref The unique identifier for the group of risks or certificates Mandatory for all transactions where a series of certificates y P such as the policy or group reference have been written under a group or policy reference Name or Registration Mandatory for all aircraft Mandatory for Spanish vehicles No of Aircraft Vehicle The name of the ship the registration number of the aircraft May be requested by the underwriter for other territories and Vessel etc registration number of the vehicle etc classes Risk 7 Further Period of Cover Where the period of cover cannot be defined by specific Required where the period of cover cannot be expressed as Details Narrative dates a narrative description of the cover dates Number of Policies The number of different policies which are covered by this transaction Mandatory where the risk or the insured are located in Spain Number of Vehicles The number of different vehicles which are covered by this transaction Mandatory where the risk or the insured are located in Spain Wet Marine Indicator Please refer to Lloyd s Crystal tool for latest information http www lloyds com The Market T ools and Resources Tools E Services Crystal Please refer to Lloyd s Crystal tool for latest information http www loyds com The Market T ools anda Resources Tools E Services Crystal 31 Type of Information Field Descri
29. ld be paid Suggested values continued e Any one accident or occurrence Deductible Basis e In aggregate e Any one claim e Any one event e Any one interest e Any one loss e Any one person passenger or patient e Combines single limit any one loss e Combined single limit e Each and every loss e Each and every interest Required where the risk or the insured or reinsured are located in Australia Required for Ontario liability business earthquake coverage in British Columbia and Quebec Mandatory in Canada for automobile business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories 35 Type of Information Field Description Conditions Jurisdiction The jurisdiction to which the tax is payable This might be a Required for all taxes levies and Para fiscal charges country state province county or parish for example Tax Type The tax which is applicable to the premium being reported Required for all taxes levies and Para fiscal charges Tax Levy Fee or Para Fiscal Charge Information to be repeated for each tax Taxable Amount The amount of premium and fees if appropriate to which the tax applies If this amount needs to be deducted from the original premium to give the net then it is recommended that a minus sign should b
30. le please contact CoverholderReportingStandard lloyds com e f you are using Lloyd s Canadian coverholder system Lineage then you do not need to use the standard as well e f any changes are needed agree a sensible target date with your broker in London and your system vendors Providing information to London Coverholders typically provide premium information as a monthly submission known as a bordereau The information will usually be provided to the London broker as a statement of what is being paid Information is often provided as a spreadsheet This guide provides a recommended spreadsheet format However the information requirements may already be being met in a satisfactory manner by an existing format If the recommended spreadsheet format is used then where conditional fields are not required it is recommended such columns are hidden Some coverholders are now able to provide XML and this is an acceptable format It is the intention that a standard XML schema be created in 2011 In the past information has sometimes been provided on paper in faxes in word processing formats or in PDF formats however brokers syndicates and their strategic partners in London need to be able to map the information given to other details and to perform calculations Paper fax word processing and PDF formats are not appropriate as they mean that parties in London can spend unnecessary time re keying information It is recommended that coverholders agre
31. n paid The gross premium must be expressed in the original currency e The commission which has been taken by the coverholder this may include local commission paid to retail agents or introducers of business e The amount of commission taken by the coverholder This must be expressed in the original currency e The amount being paid to the broker in London This must be expressed in the original currency The following information may need to be provided dependent on the territory class of business and any additions or deductions which have been made e For any changes cancellations or endorsements the date from which these are effective and where appropriate when these expire e Terrorism premium such as UK Pool Re US TRIA French GAREAT or Australian ATIA should be shown on a separate row as a separate transaction and should not be included in the gross premium transaction e Any additions or deductions being made such as taxes fees levies or the acessori must be stated see details below e Any other fees additions or deductions should be shown as separate rows transactions Transaction settlement currency The currency in which monies are being paid settled to London must be given If the currency in which monies are being settled is different to the original currency then the rate of exchange must be stated together with the net amount being paid to London expressed in the settlement currency that is the currency in
32. ndatory for all transactions Endorsement Effective Date The date from which this transaction applies For example If this is an endorsement then the date of the endorsement Mandatory for all transactions for which the risk inception date is not the start date for example the endorsement start date Endorsement Expiry Date The date the transaction ends For example if this is an endorsement which only applies for one month then the end date of the period for which it applies Mandatory for all transactions where the end expiry date is known and this is not the same as the risk expiry date for example the endorsement end date for a fixed period endorsement 20 Type of Information Field Description Conditions Transaction Original Currency Original Currency The original currency in which the premium was paid It is recommended that the ISO 4217 3 letter alphanumeric currency codes are used More details can be found here http www iso org iso support fags fags widely used stand ards widely used standards other currency codes currenc codes list 1 htm Mandatory for all transactions Gross Premium Paid this Time The premium paid in this transaction before any deductions If this transaction is an instalment this should be the gross amount of this instalment Where an element of the premium is for terrorism premium such as UK Pool Re US TRIA French GAREA
33. ocument from Pound 1 divided by 0 82 1 22 so the the London broker rate of exchange would be 1 22 Required where the brokerage is being settled in a E een The amount being deducted as different currency to the original currency Final Settlement Currency a expressed inthe settlement This information can be provided in either the Net y bordereau or in an accompanying document from Premium the London broker continued Required where the premium is being settled in a Final net premium settlement currency The final net premium amount that is the gross premium after all deductions and additions including the coverholder commission and the brokerage expressed in the settlement currency different currency to the original currency This information can be provided in either the bordereau or in an accompanying document from the London broker for Lloyd s The proportion of the final net premium which is for the Lloyd s market expressed as a percentage Required where 100 of the final net premium is not for the Lloyd s market but the submission is being made for the Lloyd s market This information can be provided in either the bordereau or in an accompanying document from the London broker 41 42 PREMIUM REPORTING STANDARD RECOMMENDED LAYOUT ALL FIELDS The following layout is the recommended layout e Mandatory fields are shown in red e Fields shown in yellow are conditional and are
34. ode or similar for the insured or reinsured This is should be where the insured reinsured is resident if they are a private individual or has its main operating address if it is a corporate body Used for reporting fire brigade charges in Spain Also required for Australia Italy and South Africa Mandatory for insured or reinsured where the country of origin is Australia Italy South Africa or Spain 29 Type of Information Field Description Conditions Location of Risk Further Details Address The full address of the risk Used for reporting of fire brigade charges in Spain Also required for taxable risks in Italy and for French legislation details Lloyd s risk locator tool can be used to help confirm the location of the risk http Awww lloyds com The Market Operating at Lloyds Resources Risk_ locator Required for risks located in France Italy and Spain County If the risk is located in a country with counties then the county in which the risk is located Preferred for risks located in countries with counties Postcode Zip Code or similar The postcode of the risk Used for reporting of fire brigade charges in Spain Also required for taxable risks in Italy and for French legislation details and for risks located in Australia Required for risks located in Australia France Italy and Spain 30 Type of Information Field Descr
35. ption Conditions The currency in which the sum insured is expressed This is required for Terrorism reporting obligations in Australia Motor business in Hong Kong ____ Mandatory where the risk or insured reinsured is located in As part of the Policy Register that Lloyd s are required Australia Papua New Guinea or Switzerland to maintain to meet Papua New Guinea Legislative requirements Mandatory for motor business in Hong Kong Where the risk or insured are located in Switzerland Required in Kentucky for determination of mine Mandatory for home owner business in Kentucky and subsidence on homeowner policies preferred for other policies where the risk is located in _ Required in Canada for Ontario liability business and Kentucky Sum for earthquake coverage in British Columbia and Sum Insured Currency Quebec Al ired in Canada f amobil Insured EES ASO TEQUES IMvanaca Or atime Mandatory for Ontario liability business earthquake coverage business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories It is recommended that the ISO 4217 3 letter alphanumeric currency codes are used More details can be found here http www iso org iso support fags fags widely used stand ards widely used standards other currency codes currenc codes list 1 htm in British Columbia an
36. ral sales tax and stamp duty This is charged on a range of transactions and may be due on insurance e Income and corporation tax This may be charged on insurer s operations depending on how they are organised e Withholding tax This is withheld from a payment and paid to tax authorities by a person making a payment It can be due on non admitted insurance e Other fiscal charges e g fire brigade charges natural catastrophe levies These can require detailed record keeping by insurer What factors influence where and what taxes are due e The nature of the business i e is it reinsurance or insurance e Where the insured is established or property located e The nature of the risk and the class of insurance it falls under e How the risk is written is it via a coverholder local broker or direct and what countries are involved in the intermediary chain How are taxes managed for Lloyd s e Lloyd s centrally prepares and renders tax returns on behalf of the Lloyd s market based on information provided by Lloyd s syndicates e Coverholders should ensure tax is correctly noted on their reports Tax information found to be missing or incorrect will lead to the policy being rejected and delays in the premium being paid to underwriters and taxes being paid to the tax authorities How can find out more Lloyd s tax and regulatory tool Crystal and the accompanying guidance tool Crystal Assist can be used to determine which tax
37. re involved in the S transaction should be specified Open market similar located correspondents producing brokers or local brokers The country where the intermediary is located It is recommended that the ISO 3166 2 letter country codes Any of the following intermediaries who are involved in the Country are used Further details can be found here transaction should be specified Open market http www iso org iso country codes iso_ 3166 code lists e correspondents producing brokers or local brokers nglish_ country names and code elements htm Notes Notes Any notes or extra comments As required 38 Details to be added by the broker in London Type of Field Description Conditions Information The amount being deducted as This information can be provided in either the Brokerage of gross premium brokerage expressed as a percentage of bordereau or in an accompanying document from the gross premium paid by the insured the London broker Brokerage Required where the brokerage is being settled in the original currency Brokerage Amount brokerage expressed in the orci Original Currency 9 P 9 This information can be provided in either the currency bordereau or in an accompanying document from the London broker The final net premium amount that is Required for all transactions Final Final Net Premium the gross premium after all deductions Net Original Currency and additions including
38. riginal currency was Euros and the Mandatory where payment to London is being made ina 9 settlement currency is Pounds Sterling and 1 Euros 0 82 different currency to the original currency of the premium Pound 1 divided by 0 82 1 22 so the rate of exchange would be 1 22 Transaction Settlement Currency continued The amount of premium being paid to the broker in London Net Premium to London That is the premium paid in this transaction All deductions and additions should be listed in the appropriate tax or levy coverholder commission or acessori field The amount should be expressed in the settlement currency This should exclude any UK Pool Re US TRIA French GAREAT or Australian ATIA terrorism premium or fees which are being shown as separate transactions see comments re gross premium Mandatory where payment to the broker in London is being made in a different currency to the original currency of the premium 25 Type of Information Field Description Conditions US US Classification The US classification of the risk US Surplus Lines US Reinsurance Illinois Licensed Kentucky Licensed USVI Licensed US Virgin Islands Non Regulated Exempt Mandatory for all risks where the country of origin is the US or the original currency of premium is US dollars State of Filing The US state in which the transaction was filed Mandatory for all dire
39. runswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories automobile business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories 33 Type of Information Field Description Conditions Deductible Deductible Currency The currency in which the deductible is expressed This is required where the risk or insured are located in Australia to meet NCPD reporting obligations to APRA and also for Lloyd s syndicates to complete reports relating to terrorism Required in Canada for Ontario liability business and for earthquake coverage in British Columbia and Quebec Also required in Canada for automobile business for the following provinces Alberta New Brunswick Newfoundland Nova Scotia Ontario Prince Edward Island and Quebec and for the following territories Yukon Nunavut and the Northwest Territories It is recommended that the ISO 4217 3 letter alphanumeric currency codes are used More details can be found here http www iso org iso support faqs fags widely used stand ards widely used standards other currency codes currenc ly codes list 1 htm Required where the risk or the insured or reinsured are located in Australia Required
40. s should be completed Why have coverholder premium reporting standards To make it easier for coverholders to do business with the Lloyd s market by e Replacing many differing requests from syndicates and brokers with one agreed set of premium information requirements e Giving a clear statement of the information that is needed by Lloyd s syndicates brokers and Lloyd s itself e Enabling reduction of keystrokes automation and straight through processing by standardising information flows whilst allowing coverholders to choose their own technologies and systems e To ensure the correct movement of monies between market participants e To ensure Lloyd s is able to meet tax and regulatory reporting obligations and maintain its licences around the world What does this mean for me as a coverholder What should do next e Talk to your broker in London about the standard and how it compares to your current submissions you may not need to take any action yet e f you manually create spreadsheets each month or currently submit on paper or word processing documents consider using the spreadsheet template for premium reporting being provided by Lloyd s this can be found at www lloyds com acord e f you have a system which you use for reporting premiums talk to your system vendor about the ease of changing systems to meet the standard Let Lloyd s know which system you use so they can talk to vendors on behalf of the market as a who
41. sion to retail brokers or introducers Mangatorytora l tansactions Transaction The commission taken by the coverholder expressed as an babes saree amount in the original currency This may include Original Commission Amount Gonimiesion ta retail brokers or i trod cers Mandatory for all transactions Currency continued Acessori The amount of any acessori deducted by the coverholder in Italy Mandatory for Italian transactions if no acessori has been deducted then state zero Total Taxes and Levies The sum of any taxes levies or Para fiscal fees which have been added or deducted from the gross premium Expressed in the original currency If this amount needs to be deducted from the original premium to give the net then it is recommended that a minus sign should be shown Mandatory if taxes have been added or deducted from the gross premium being declared 22 Type of Information Field Description Conditions The premium being paid to the broker in London That is the premium paid in this transaction All deductions and additions should be listed in the appropriate tax or levy coverholder commission or acessori field The amount should be expressed in the original currency This should exclude any terrorism premium such as UK Transaction Pool Re US TRIA French GAREAT or Australian ATIA or Original fees which are being shown as separate transactions see rigina Net Premium to comments r
42. sk is not necessarily the territory where the risk itself is geographically located nor is it necessarily the territory in which the insured resides e Location of risk is the country state or territory in which an insured risk is deemed to be located for regulatory and tax purposes e An insurance policy may cover several risks located in multiple territories This is called a global contract and may give rise to regulatory obligations and tax liabilities in different territories e tis also possible for a risk to be located in more than one territory for regulatory purposes How is location of risk determined e The definition of a local risk is often detailed in each territory s insurance legislation Local risks are those whose insurance is governed by the territory s insurance laws and are subject to its premium taxes or other fiscal charges e n addition to the territory s local risk definition there may be specific rules that apply to each class of business to help to determine the risk location e The Lloyd s Risk Locator provides guidance on class specific rules for determining risk location This guidance should be used in conjunction with the information in Crystal to determine in which territory the risk is located and whether or not it is covered by local laws The key questions to ask about an insurance contract are e Is it insurance or reinsurance Lloyd s holds separate authorisations for insuran
43. t is recommended the same logic is followed i e these may be included once at the top of the report Coverholder The name of the coverholder should always be given If the coverholder has multiple locations or branches then the branch should also be identified The coverholder PIN is a unique identifier which is allocated by Lloyd s when an organisation is approved as a Lloyd s coverholder Each branch is allocated a unique PIN Where the PIN is known this should be stated in addition to the name of the coverholder Contract We need to know which binding authority contract the report relates to The UMR or unique market reference is a reference assigned to the binding authority by the Lloyd s market The UMR includes a reference to the London broker The UMR should always be stated if known Where the UMR is not known the agreement number should be stated Reporting period We need to know the period the report relates to Ideally you should provide the start and end date of the period for which this is a report and where the report is for longer than a month such detail must always be given As a minimum for a monthly submission you should specify the month and year for which this is a report Type and class of business Type and class of business is a key criteria when reporting to regulators or performing analysis If the insurance is not direct but reinsurance then you should specify if this facultative treaty or excess of loss
44. ulators around the world and in some cases is also responsible for paying taxes Information is therefore needed so that premiums collected can be categorised for reporting and tax payments Lloyd s syndicates and brokers also want to know key data about the risks so they can check that they are within the terms of the binder The following information is always needed e The inception and expiry dates for the risk that is the dates when coverage starts and ends Where the period of cover cannot be described using dates a narrative description should be given for example a description of the voyage Further information may be needed dependent on the jurisdiction class of business and other factors Coverholders should refer to Crystal for the latest information on what is required http www lloyds com The Market Tools and Resources Tools E Services Crystal Location of the risk The location of the risk is a key factor when Lloyd s come to report to regulators and pay any taxes it has responsibility for The means of determining risk location may vary dependent on the type of business and country of origin In addition different levels of information will be required dependent on the location of the risk however the country in which the risk is located must always be provided Some risks may need to be split across a series of rows of detail where elements of the risk are located in more than one territory Location of ri
45. urplus lines broker NAIC code Tax levy fee type and year of account Mandatory Fields are shown in red Conditional Fields are shown in yellow these are mandatory under certain conditions These columns may either be completed on the first row as headers or on each row Coverholder Reporting Period Lloyd s Ref Insured or Reinsured if Reinsurance Risk Details Location of Risk Transaction Original Currency ge oh Surplus Lines Broker 43 Repeat the tax levy or para fiscal Repeat the intermediary columns as required London Broker to complete
46. uthority For most risks it will also have arranged payment of tax In most states either the SSN or FEIN number of the surplus lines broker or surplus lines agency is used as the surplus lines licence number If taxes and filings are due in more than one state territory then details must be provided of all the surplus lines brokers who pay taxes and make filings The licence number provided must be the surplus lines licence number for the state in which the filing is made For surplus lines transactions where the state of filing is New Jersey the unique transaction number issued by the surplus lines broker responsible for filing in New Jersey must be provided This is a unique number which is 14 characters long Further information can be found here http www lloyds com Lloyds Offices Americas US homepage Placing Risk How to access Lloyds surplus 10 Taxes levies and para fiscal fees Why is information on taxes important If taxes are not correctly identified at the earliest opportunity e Underwriters the insured and or the broker may be exposed to unexpected charges e The business will be rejected at the processing stage e It will be difficult to revisit tax calculations and collect taxes from the insured if the contract and premium has already been agreed What sort of taxes and levies may apply to insurance e Premium tax This is usually the insured s responsibility to pay but insurer s responsibility to administer Gene
47. which it is being paid Instalments Where the transaction is one in a series of instalments for the premium the gross and net premium fields should be completed with details of the amount being paid in this transaction The sum of all instalments being paid for the premium i e the total premium should also be given this should not include any endorsement premiums US If the original premium is in US dollars irrespective of risk location or the location of the insured or where the coverholder is domiciled in the US then the US classification must be reported e US surplus lines e US reinsurance e Illinois licensed e Kentucky licensed e USVI licensed USVI stands for US Virgin Islands e Non regulated e Exempt Exempt must be exempt from US state doing business and surplus lines laws The classification Exempt must not be used to identify surplus lines risks exempt from tax such risks must be classed as US surplus lines For direct business the state in which the transaction was filed must also be given Surplus lines broker details If the risk is classified as US Surplus Lines then you must provide the US surplus lines broker s name state and surplus lines licence number It is preferable that the full address details are given The surplus lines broker whose details are provided is the intermediary who has filed details of the insured risk with a US state insurance department or other a
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