Common use of Correspondents Clause in Contracts

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is free to establish – whilst acting within the limits of its national law ( e.g. prohibition of accrediting loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents established in the country for which it is competent. It follows on from this principle that each Bureau shall produce a document accessible on request to all candidates for the position of correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications required to perform this function. Nonetheless, since the Green Card System was established by the insurers, it is important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents’ charter 2) a model handling and payment agreement and 3) rules for outsourcing. These documents can be adapted by the Bureaux to their own specific situation. The above documents approved by the General Assembly can be consulted on the Council of Bureaux extranet. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a non-profit making basis by the Bureau. In the document laying down the conditions for correspondents, the Bureaux shall also address the matter of the withdrawal of the approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a withdrawal judged to be unfair. While each Bureau is free to unilaterally establish the conditions for granting or withdrawing such approval, the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon conditions bilaterally or multilaterally when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 The guidelines apply to outsourcing by Bureaux, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelines.

Appears in 1 contract

Samples: Internal Regulations

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Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is free to establish – whilst acting within the limits of its national law ( e.g. prohibition of accrediting loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents established in the country for which it is competent. 20 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 It follows on from this principle that each Bureau shall produce a document accessible on request to all candidates for the position of correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications required to perform this function. Nonetheless, since the Green Card System was established by the insurers, it is important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents’ charter 2) a model handling and payment agreement and 3) rules for outsourcing. These documents can be adapted by the Bureaux to their own specific situation. The above documents approved by the General Assembly can be consulted on the Council of Bureaux extranet. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a non-profit making basis by the Bureau. In the document laying down the conditions for correspondents, the Bureaux shall also address the matter of the withdrawal of the approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a withdrawal judged to be unfair. While each Bureau is free to unilaterally establish the conditions for granting or withdrawing such approval, the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon conditions bilaterally or multilaterally when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 system.21 The guidelines apply to outsourcing by Bureaux, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelines.

Appears in 1 contract

Samples: Internal Regulations

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is free f ree to establish – whilst acting within the limits of its national law ( e.g. prohibition of accrediting loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents established in the country for which it is competent. It follows on from f rom this principle that each Bureau shall produce a document accessible on request to all candidates for the position of correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications qualif ications required to perform this function. Nonetheless, since the Green Card System was established by the insurers, it is important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents' charter 2) a model handling and payment agreement and 3) rules for outsourcing. These documents can be adapted by the Bureaux to their own specific situation. The above documents approved by the General Assembly can be consulted on the Council of Bureaux extranet. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a non-profit making basis by the Bureau. In the document laying down the conditions for correspondents, the Bureaux shall also address the matter of the withdrawal of the approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial f inancial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a withdrawal judged to be unfair. While each Bureau is free f ree to unilaterally establish the conditions for granting or withdrawing such approval, the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon conditions bilaterally or multilaterally when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 system.27 The guidelines apply to outsourcing by Bureaux, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelines. 4.1 addresses a restriction of the autonomy of every Bureau in so far as any legally recognised establishment of a foreign insurer (e.g. a related undertaking) actually transacting motor insurance in accordance with the law in the country where the approval is requested shall be approved. An establishment can also be realised within the meaning of EU legislation which foresees that insurance undertakings may operate motor insurance in other countries than their home Member State under the Freedom of Establishment (FoE – a branch office or agency) or the Freedom to Provide Services (FoS). 27 2015 – General Assembly, Decision No 5-2 – Entry into force: 1st July 2015 Experience has shown that an establishment of an insurance undertaking will not necessarily actually transact MTPL business. Consequently, the automatic approval of an establishment as correspondent of the mother company - as foreseen previously in the Internal Regulations - does not seem to be appropriate. The establishment will only be approved as correspondent – without necessarily having to undergo the same examinations as other entities wishing to become correspondents – if it really exercises MTPL business in the country of the Bureau receiving the request.28 In order to facilitate the daily practice of requesting the approval of correspondents, a model wording has been prepared that must be used by a Bureau when requesting the approval of the nomination of a correspondent in another country. The model wording can be included by the Bureaux in the format of their choice (it is a model wording; not a model letter) and is available on the CoB website29.

Appears in 1 contract

Samples: Internal Regulations

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is free to establish – whilst acting within the limits of its national law ( e.g. prohibition of accrediting loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents established in the country for which it is competent. 20 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 It follows on from this principle that each Bureau shall produce a document accessible on request to all candidates for the position of correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications required to perform this function. Nonetheless, since the Green Card System was established by the insurers, it is important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents’ charter 2) a model handling and payment agreement and 3) rules for outsourcing. These documents can be adapted by the Bureaux to their own specific situation. The above documents approved by the General Assembly can be consulted on the Council of Bureaux extranet. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a non-profit making basis by the Bureau. In the document laying down the conditions for correspondents, the Bureaux shall also address the matter of the withdrawal of the approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a withdrawal judged to be unfair. While each Bureau is free to unilaterally establish the conditions for granting or withdrawing such approval, the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon conditions bilaterally or multilaterally when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 system.21 The guidelines apply to outsourcing by BureauxXxxxxxx, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelines.

Appears in 1 contract

Samples: Internal Regulations

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Correspondents. 4.1 The provision first paragraph of this sub-article describes the basic principle governing the approval of correspondentsCorrespondents: i.e. each Bureau is free to establish – whilst acting within the limits of its national law ( e.g. (for example, prohibition of accrediting of loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents Correspondents established in the country for which it is competent. It follows on from this principle that each Bureau shall produce a document accessible able to be accessed (for reasons of transparency it would be desirable to display it on request to the website of each Bureau) by all candidates for the position of correspondent Correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications required to perform this function. Nonetheless, since It is not the responsibility of the Council of Bureaux to prescribe the contents of such a document. You may be well advised to remember that the “Green Card System System” was established by the insurers, insurers and that it is therefore important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents’ correspondents charter 2) a A model handling and payment agreement and 3) rules Rules for outsourcingOutsourcing. These documents can be adapted by changed according to the Bureaux to their own specific situationsituation of each Bureau. The above documents approved by the General Assembly can be consulted They are on the Council of Bureaux extranetwebsite. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. for example, surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondentsCorrespondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a nonnon profit-profit making basis by the Bureau. In the this document laying down the conditions for correspondents, the Bureaux each Bureau shall also address the matter of the withdrawal of the this approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a any withdrawal judged to be unfair. While each Bureau is free to unilaterally establish the conditions for granting or withdrawing such approval, approval the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon common conditions bilaterally or multilaterally multilaterally. 4.1 addresses a restriction of the independence of every Bureau in so far as any legally recognised establishment of a foreign insurer approved to transact motor insurance in accordance with the law in the country where the approval is requested shall be automatically approved. Specific rules applicable when this is warranted the insurance undertaking operates motor insurance under freedom of establishment or freedom to provide services, as foreseen by the case(sEU legislation: Insurance undertakings can operate in other countries than their Home Member State under freedom of establishment (through a branch office) concernedor freedom to provide services (FOS). In 2015both options the insurance undertaking is required to join the Bureau of the Member State where insurance activities are performed. Neither the branch office, nor the activity under FOS constitutes a legal entity in that country. The legal entity is the insurance undertaking. It follows that only the insurance undertaking can require the nomination of a correspondent. In the interest of transparency for victims, any one insurer should only be able to nominate one correspondent in another country. The Bureau of the country of the nominated correspondent is in the best position to identify that an insurance undertaking proposes to nominate more than one correspondent and to take action. It is also in its interest to take action in view of the position of victims of accidents in its territory. It will in such a situation refuse the nomination of the second correspondent and inform the Bureau which requested this nomination. That Bureau will then contact its member and invite it to harmonize the nomination of its correspondents in its own organization. The following procedure shall apply if the nomination of a correspondent is requested: If it comes to the knowledge of the Bureau which has to approve the nomination of a correspondent that the insurance undertaking, either for its activities in the Home Member State or for its branch office or under freedom of services, has already nominated another correspondent in the same country, it shall refuse the later nomination and it shall inform the Bureau which requested this nomination accordingly. The Bureau thus informed shall then invite its member to decide on the nomination of a single correspondent for all its activities in the said country17. In order to facilitate the daily application of this rule, a model wording has been prepared that must be used by a National Bureau when requesting the approval of the nomination of a correspondent in another country. The model wording can be included by the Bureaux in the format of their choice (it is a model wording; not a model letter) and is available on the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 The guidelines apply to outsourcing by Bureaux, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelineswebsite18.

Appears in 1 contract

Samples: Internal Regulations

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is free to establish – whilst acting within the limits of its national law ( e.g. prohibition of accrediting loss adjusters) – the conditions under which it grants, denies or withdraws approval to correspondents established in the country for which it is competent. It follows on from this principle that each Bureau shall produce a document accessible on request to all candidates for the position of correspondent established in its country. This is without prejudice to those conditions that are laid down by national law. (For reasons of transparency, it is recommended to display the document on the website of each Bureau.) This document describes all the qualifications required to perform this function. Nonetheless, since the Green Card System was established by the insurers, it is important for the Bureaux to respond to their wishes whilst abiding by their national law. The General Assembly of the Council of Bureaux (2009) has approved the use of the following three documents by 25 2017 – General Assembly, Decision No 4-1 - Entry into force: 1st January 2018 Bureaux: 1) a model correspondents’ charter 2) a model handling and payment agreement and 3) rules for outsourcing. These documents can be adapted by the Bureaux to their own specific situation. The above documents approved by the General Assembly can be consulted on the Council of Bureaux extranet. In this regard it should be noted that each Bureau must abide by the principle of non-discrimination i.e. it cannot impose, without justification, on certain correspondents alone, conditions or charges (e.g. surety deposits) which would not be imposed on others. Furthermore, should a Bureau require the payment of certain amounts by correspondents, the same criterion of non-discrimination shall apply and the amounts charged shall be related to services actually provided on a non-profit making basis by the Bureau. In the document laying down the conditions for correspondents, the Bureaux shall also address the matter of the withdrawal of the approval. This is a sensitive matter which should be approached with caution as any withdrawal might result in financial consequences for the entity concerned. Each Bureau shall accept responsibility for the consequences of any litigation ensuing from a withdrawal judged to be unfair. While each Bureau is free to unilaterally establish the conditions for granting or withdrawing such approval, the Internal Regulations also provide the Bureaux with an option to exceptionally agree upon conditions bilaterally or multilaterally when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card system.26 The guidelines apply to outsourcing by BureauxXxxxxxx, insurers and correspondents. When setting the conditions of outsourcing for correspondents, the Bureaux also have to take into account these guidelines.

Appears in 1 contract

Samples: Internal Regulations

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