On the 21 March 2016, the LMA published a suite of 18 generic model clauses, together with supporting guidance, for the Lloyd’s market to use in connection with the Insurance Act 2015 (the Act).

The clauses provide managing agents, brokers and clients with the opportunity to update their existing policy wordings to ensure consistency with the Act before it comes into force this August.

The model clauses include wording for the duty of fair presentation under section 3 of the Act for use in proposal forms for non-consumer contracts, remedies for breach of the duty of fair presentation for contracts concluded before 12 August 2016 and a definition of the “insured’s organisation”, which can also be used for reinsurance contracts.

The LMA’s Wordings & Contracts Forum1 extensively reviewed the clauses prepared by an external law firm on behalf of the LMA.