CII LM3 case studies
CII LM3 · Put your knowledge to work in context.
LM3 is the London Market Insurance unit at Level 3 of the CII qualifications framework - the module most people take when they move into, or alongside, the London subscription market and need to understand how it actually works. It suits brokers, underwriters' assistants, claims technicians, coverholders' staff, reinsurance and compliance teams, and anyone in operations, accounting or IT who supports market business and is tired of hearing terms like 'slip', 'line', 'binding authority' and 'market reform' without a working grasp of them. The CII LM3 case studies are 5 cases and about 4,034 words.
1The slip that came back short
On 14 November a London wholesale broker presents a combined property and business interruption risk for a Norwegian salmon-processing group to a Lloyd's syndicate. The slip shows total insured value of £180m and requests a 100% placement.
833 words, about 4 min2Flood aggregate versus a hungry broker
A Lloyd's syndicate's property underwriter has a personal line authority of £3m and a class aggregate for UK flood of £25m for the underwriting year. It is 5 December and £22.8m of the flood aggregate is already committed.
715 words, about 4 min3The notification that arrived twice
A UK engineering consultancy held a claims-made professional indemnity policy for 2019/20 with a £5m limit, costs inclusive, a £250,000 deductible and a retroactive date of 1 January 2015. The insured notified the insurer in March 2021 of 'circumstances which may give rise to a claim' arising from a 2018 foundation design for a warehouse.
907 words, about 5 min4Follow the settlement, or follow the claims control clause?
A Lloyd's syndicate writes a £10m excess-of-£5m facultative reinsurance layer for a Caribbean hurricane-exposed resort portfolio. The reinsurance contains a 'follow the settlements' clause and a claims control clause requiring the reinsurer's prior written approval for any settlement above £2m.
770 words, about 4 min5The renewal with three red flags
A London broker is renewing a £2.4m marine hull and machinery programme for a shipowner whose ultimate beneficial owner is a former minister in a country subject to UK sanctions. The broker's sanctions screening tool returns a 92% name match against a designated individual, but the date of birth and nationality do not match.
809 words, about 4 min