ICOBS 8 Annex 1 Employers’ liability register

Part 1 In relation to information to be included in the employers’ liability register

1.1

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A firm must:

(1)

for each policy it enters into or renews on or after 1 April 2011, include, in relation to that policy, all the information required by the form in 1.2R, in accordance with the notes;

(2)

for each policy not falling in (1) and in relation to which a claim is made on or after 1 April 2011, include, in relation to that policy, all the information required by the form in 1.2R that the firm holds, in accordance with the notes; and

(3)

in relation to (1) and (2) include the notes set out in 1.2R.1

11.1A

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A firm is not required to include information required by 1.1R(1) and (2) to the extent that it relates to the firm's potential liability as a co-insurer, other than as the lead insurer, under a co-insurance arrangement satisfying the following conditions:

(1)

the risk is covered by a single contract at an overall premium and for the same period by two or more insurers each for its own part;

(2)

one of the insurers is the lead insurer who is treated as if it were the insurer covering the whole risk;

(3)

the lead insurer fully assumes the leader’s role in co-insurance practice and in particular determines the terms and conditions of insurance and rating;

(4)

the firm has entered into and maintains with the lead insurer up-to-date written agreements identifying the policies in relation to which the firm is a co-insurer of the lead insurer and the proportions of the risk for which the co-insurer is responsible; and

(5)

the firm is satisfied that the lead insurer complies with the requirements in 1.1R(1) and (2) in relation to the co-insured policies.

11.1B

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A firm is not required to include information required by 1.1R(1) and (2) to the extent that it relates solely to the firm's potential liability under an excess policy where another insurer has principal liability for the risk, and the following conditions are satisfied:

(1)

the principal insurer's maximum liability under the primary policy covering the risk is for no less than £5,000,000 in relation to a single event;

(2)

the firm has no liability to potential claimants until those claimants have exhausted their remedies against the principal insurer; and

(3)

the firm has adequate arrangements for identifying and recording the policies in relation to which the firm provides excess cover under an excess policy.

1.2

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FORM1

Part 2 In relation to information not required to be included

2.1

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A firm carrying out contracts of insurance, in relation to which information is not required to be included in the register under FSA rules, must, beneath the form in 1.2R, state the following, where applicable, tailored as necessary to the firm's circumstances:

“We have potential liability for policies under which UK commercial lines employers’ liability cover has been provided to employers and which commenced or were renewed before 1 April 2011 and in respect of which no claims were made on or after 1 April 2011. However, we are not required to make details of those policies available in this register under FSA rules. Enquiries may be made about these policies by individual claimants, their authorised representatives, or insurers or their insurance intermediaries, with potential claims, by contacting [insert contact details]”1

12.1A

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A firm with potential liability as a co-insurer and which satisfies the requirements of 1.1AR must tailor the statement in 2.1R to include reference to the following:

(1)

that the firm has potential liability for policies under which UK commercial lines employers’ liability cover has been provided to employers for which the firm was co-insurer, but not lead insurer, but that the firm is not required to make details of those policies available in the register under FSA rules; and

(2)

responsibility for making information available in relation to policies to which (1) applies is with the lead insurer.

12.1B

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A firm with potential liability under an excess policy and which satisfies the requirements of 1.1BR must tailor the statement in 2.1R to include reference to the following:

(1)

that the firm has potential liability for policies under which UK commercial lines employers’ liability cover has been provided to employers for which it provides cover only in excess of that provided by another insurer (and where the principal cover is for £5m or more) but that the firm is not required to make details of those policies available in the register under FSA rules; and

(2)

responsibility for making information available in relation to the policy providing the principal cover is with the principal insurer.

2.2

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The purpose of 2.1R, 2.1AR and 2.1BR1 is to inform users of the register that the firm may be potentially liable in relation to policies other than those on the register. However, a firm may include policies additional to those entered into, renewed, or in relation to which a claim was made, after April 2011, in the register. If it does, the statement in 2.1R, 2.1AR or 2.1BR1 may be amended as necessary to refer to the policies that are not included.