ITIC circular: ITIC 2022 Rules
Circular to all members and brokers
As a result of the Russia-Ukraine conflict the ITIC board of directors have reviewed the provisions within the ITIC rules regarding both sanctions and the ability to terminate a member’s entry with ITIC.
ITIC’s current Rule 13.32 provides that there would be no cover if ITIC is at risk of breaching the sanctions described in that rule, which are limited to the EU, UK and USA. A number of other countries have their own sanctions regimes. Accordingly, it was felt that the sanctions clause needed to be widened. There is a further widening of Rule 13.32 to allow ITIC to suspend or terminate cover if ITIC is exposed to or at risk of being exposed to sanctions, prohibitions or adverse actions.
In addition it was felt that new provisions should be included within the ITIC Rules which would allow ITIC to suspend or terminate cover in the event that a situation arises which the Directors believe could cause reputational damage to ITIC.
Finally, a new automatic cesser of insurance has been added if a member becomes subject to sanctions, prohibitions or restrictions of the UK, USA, EU or UN.
In summary changes to the Rules include:
- An alteration to the wording of Rule 13.32.
- Current Rule 18.2 is amended to include parts (a) and (b). (a) is the current Rule 18.2. (b) is a new discretionary cesser in relation to Rule 13.32 and/or circumstances regarding sanctions, wars, invasions, conflicts which the directors consider alter the nature of the risk insured.
- The inclusion of an automatic cesser of cover for sanctioned members at Rule 18.1(e).
- A discretionary cesser or suspension of cover for reputational damage has been added as Rule 18.4.
- Current Rule 18.4 is amended to 18.5. This has been changed from “cesser for any other reason” to “consequences of cesser or suspension”.
- Current Rule 18.5 is amended to 18.6.
The above changes are the only amendments being made to the expiring Rules (2021).
Please contact your account executive if you require any clarification.