Voluntary agreement among insurers to establish cost saving practices. Insurers enter into claims agreements to avoid expensive arguments about liability or quantum when each insurer insures a party involved in the same accident. The agreements work best when each insurer writes a similar account so that, overall, the net amount that one insurer would owe another under normal legal processes is insignificant compared with the savings gained. See MEMORANDUM OF UNDERSTANDING.
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An agreement between all the underwriters in a certain section of the Lloyd’s market.