No Cover Note or binder or any other document(s) which give details of coverage (Documents) can be prepared when there is at least one Major Subjectivity, but Documents may be prepared and sent when there are minor subjectivities but these must be clearly shown in the Document.
However, Documents can be prepared and sent to the Client if Insurers specifically agree for PSC to issue Documents notwithstanding the Major Subjectivity provided the Major Subjectivity is (are if plural) clearly shown in the Documents.
See Appendix 5 for a list of people who are authorised to sign Cover Notes. A copy must be saved in the placing file and the original must be sent to the Client. One of the signatures to be the person responsible for the account and this person should sign first in order to check that the Documents reflects the placement and all the terms and conditions of the coverage. The second signature must be someone who had no involvement with the account (can be a Director or Vice President or higher) and should check that the placement has been handled in accordance with the Client’s instructions and PSC’s Compliance and Procedure Manual, especially matters such as full disclosure to Insurers of material underwriting information and PSC’s remuneration.
The Documents must show the proportion of the risk underwritten by each Insurer who must all be shown using their full legal names.
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