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 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 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 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 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 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 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.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.

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 f ree 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 f rom 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 qualif ications 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 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 f inancial 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 f ree 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 when this is warranted by the case(s) concerned. In 2015, the CoB has adopted new Guidelines on Outsourcing in the Green Card 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 guidelinesmultilaterally.

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is f ree 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 f rom 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 qualif ications 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 f inancial 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 f ree 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.27 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.

Correspondents. 4.1 The provision describes the basic principle governing the approval of correspondents: i.e. each Bureau is f ree 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 f rom 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 qualif ications 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 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 f inancial 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 f ree 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.27 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.