View source for Definition:Placing slip

📝 '''Placing slip''' is the document used by a [[Definition:Placing broker | placing broker]] to present a risk to the [[Definition:Insurance market | insurance market]] and record each [[Definition:Underwriter | underwriter's]] agreement to participate. Long the foundational instrument of the [[Definition:London market | London market]] and other [[Definition:Subscription market | subscription markets]], the slip contains key details about the [[Definition:Insured | insured]], the [[Definition:Risk | risk]], proposed [[Definition:Policy terms and conditions | terms and conditions]], [[Definition:Premium | premium]], and [[Definition:Limit of liability | limits of liability]]. Underwriters indicate their acceptance by "scratching" a line — writing the percentage of the risk they are willing to take alongside their stamp — until the slip reaches full subscription.

⚙️ A typical placing slip follows a structured format, often aligned with the [[Definition:Market reform contract (MRC) | market reform contract (MRC)]] framework, which standardizes sections for risk details, security information, [[Definition:Exclusion | exclusions]], [[Definition:Subjectivity | subjectivities]], and claims provisions. The [[Definition:Lead underwriter | lead underwriter]] is approached first and sets the pricing and terms that [[Definition:Following underwriter | following underwriters]] will reference. As the broker circulates the slip, each subsequent underwriter may accept the lead's terms outright or negotiate minor modifications. In today's market, physical paper slips are increasingly being replaced by digital equivalents on platforms such as [[Definition:Placing platform limited (PPL) | PPL]], though the underlying logic of progressive subscription remains the same.

🏛️ The placing slip occupies a unique legal and practical position in insurance. Historically, a fully scratched slip was considered a binding contract even before formal [[Definition:Policy | policy]] documentation was issued — a principle tested in numerous court cases. The push for [[Definition:Contract certainty | contract certainty]] has added rigor to the process, requiring that agreed terms are documented clearly and promptly. For brokers, the slip is both a negotiation tool and an evidence trail; for underwriters, it is the primary mechanism through which they commit capital. Getting the slip right — in content, clarity, and compliance with market standards — remains one of the most important competencies in the [[Definition:Placing | placing]] process.

'''Related concepts:'''
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* [[Definition:Placing]]
* [[Definition:Placing document]]
* [[Definition:Market reform contract (MRC)]]
* [[Definition:Lead underwriter]]
* [[Definition:Subscription market]]
* [[Definition:Contract certainty]]
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