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RE: Lloyd's of London Electromagnetic Fields Exclusions
RE: Lloyd's of London Electromagnetic Fields Exclusions
RE: Lloyd's of London Electromagnetic Fields Exclusions
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Sent: April 8, 2015 7:59 AM
To: 'Dennis and Sharon Noble'
Subject: RE: Lloyd's exclusion re. Electromagnetic Fields. (ref 1733/2015)
Dear Mr/Mrs Noble
Thank you again for your email.
Further to our last exchange, I have included below some further comments directly from CFC Underwriting.
Additionally, these same comments have also been supplied to Cody MacGreagor of Special Risk Insurance
Managers, and (I understand) are in turn being passed to Kelly Reynolds of UIB:
Hello Cody,
As far as we are aware, the electromagnetic field exclusion is a standard London market exclusion. Naturally I cannot
speak for every single insurer and syndicate in London because some may be willing to remove the exclusion which is
their prerogative, but the insured might want to double check their CGL wording given the misunderstanding here.
In response to the email below, and at the risk of repeating myself, the electromagnetic exclusion has always been in CFC
policies and formed part of the terms and conditions offered to the insured prior to binding. Indeed the broker asked
questions about the exclusion prior to binding, and we responded explaining the exclusion has always been in our
wording, certainly since 2008 (copy email attached) so the broker was definitely aware of the exclusion at the quotation
stage, and then proceeded to bind the account, so if the insured was unaware of this exclusion and has concerns they
need to raise this with their broker, not CFC.
Secondly, as I mentioned yesterday, the insured have complained directly about this issue to Lloyds of London. In reply
(and as per the attached), the Lloyds complaints office have defended our response and stance, before going on to
explain to the insured it is not reasonable for Underwriters to divulge their reasoning behind any terms and conditions,
as these are business decisions.. Accordingly and acting on the advice of the Lloyds complaints office, we are unwilling
to provide definitions of undefined terms; to provide interpretations or explanations of any of our policy terms, conditions
or exclusions; or to provide answers to hypothetical scenarios, because in doing so we may prejudice our position in the
event of a claim.
In summary we are not willing to elaborate any further on the points raised below. As per the email from Mike Daniels
attached, although he can see no reason to ask CFC to look at the matter any further, the Insured are welcome to invoke
stage 2 of the Lloyds of London formal complaints process, and in doing so the insured will need to explain why they feel
our position is unjustified.
Your questions have been repeated on numerous occasion, so I will again reiterate that I do not think it reasonable for
underwriters to explain meaning behind each and every exclusion within a policy, as these are business decisions. As I
have said before, Business decisions concerning whether or not to underwrite, renew or cancel particular insurances and
the terms, conditions and premiums that apply are made by representatives for the individual Lloyd's underwriters.
Those underwriters, like any other insurer, are at liberty to underwrite risks, or not, at whatever premium and terms
they deem appropriate in the circumstances. If your acquaintance is concerned that the exclusion was not highlighted
at renewal in a proper manner, then I am afraid that this matter should be taken forward with the retail broker.
Regards
Michael Daniels
Case Officer
Complaints
Lloyd's
Telephone
+44 (0)1634 39 2003
www.lloyds.com
SAVE PAPER - THINK BEFORE YOU PRINT
Mr. Daniels, if you are unable to provide the answer to these questions, could you please direct my
inquiries to the appropriate person?
Thank you.
Regards,
Sharon Noble