Further to Lloyd’s updated arrangements for international complaints handling which were released in market bulletin Y4961, Lloyd’s has now set out the processes for handling complaints from the USA. As of the 1 January 2017, renewed Binding Authority or placement in the US should adopt these new arrangements.
The process to be followed reflects amendments to the non-UK complaints procedure intended to accommodate US regulatory and legal requirements and local market practice. The processes apply only to written complaints and are limited in application (i.e. to personal lines, some commercial policies with less than 10 employees and certain revenue/balance sheet/income/asset value limits for charities and trustees).
Managing Agents should act in accordance with relevant US laws and regulations and maintain best practice timescales except there the complaint originates from the Department of Insurance or an equivalent body (“DOI”) in which case the Managing Agent should follow the procedures set out by that body.
When responding to a complaint the Managing Agent must include details of the DOI and explain to the complainant their right to escalate the complaint if they remain unsatisfied. Direct complaints may be resolved verbally within 3 days and details of all complaints should be sent to Lloyds by completing the Lloyds Complaint Notification Template
A guidance note and model complaints handling clauses for endorsing Binding Authority Agreements in the USA have been produced (LMA5268 and LMA5269) and their use is recommended.
Full details can be found in Lloyd’s Market Bulletin Ref:Y5019 ( read Market Bulletin here )