Document that provides a general description of the responsibilities that are to be assumed by two or more parties in their pursuit of some goals. It is used when agencies enter into a joint project in which (1) they each contribute their own resources and the scope of work is broad and not specific to any one project or (2) there is no exchange of goods or services between the participating agencies.
Insurance Encyclopedia
Memorandum of Understanding (motor insurance)
Voluntary agreement between motor insurers replacing the knock for knock agreement. Insurers, whose respective insureds have been involved in a collision, agree, when liability attaches to their insured, to pay the other insurer’s accidental damage claim without contesting the amount claimed. This saving in administrative costs is a part of the reduction in paper work exchange.
Memorandum of Understanding (MoU)
Framework for the relati ship between the FSA and the Financial Ombudsman Service (FOS). It reflects the fact that whilst each is operationally independent, they need to cooperate and communicate constructively with each other in order to carry out their respective functions effectively. A similar undertaking links the FSA and the Financial Services Compensation Scheme.
Memorandum, The
Clause referring to particular average used in the discarded SG form. The object was to free underwriters from liability for particular average in respect of certain classes of goods that were particularly susceptible to damage by insured perils. In respect of other goods and the ship and the freight, it applied a franchise (a percentage of damage) which had to be reached before a particular average claim was payable by the insurer.