Last Updated: 7th September 2023

Clearing House Services Terms

1. General

1.1 Where a Participant has elected to use the Clearing House Services, these Clearing House Services Terms form part of, and are incorporated within, the Participant Services Agreement and set out the terms on which AkinovA will provide, and the Participant will receive, the Clearing House Services. AkinovA reserves the right to amend the terms of these Clearing House Services Terms from time to time.

1.2 Capitalised terms within these Clearing House Services Terms have the meaning given to them in the Participant Services Agreement unless defined below.

1.3 In these Clearing House Services Terms, the following definitions have the following meanings:

Claims Management Services means the services set out in clause 4;

Collateral Release Services means the services set out in clause 5;

Custodian Bank means a bank which holds collateral received from a Capacity Provider Participant on trust for a Cover Buyer Participant pursuant to a Trust Agreement;

Participant Services Agreement means the agreement of that name entered into between AkinovA and a Participant;

Reinsurance Contract means a contract for insurance, reinsurance or other form of protection or transfer of risk to be entered into between the Cover Buyer Participant and the Transformer to reflect the terms of the Transaction;

Reporting Services means the services set out in clause 3;

Separate Account means a separate account of the Transformer;

Subscription Instrument means the application agreements between the Transformer and Capacity Provider Participants pursuant to which Capacity Provider Participants make an investment via the Separate Account in the reinsurance/insurance market using the AkinovA Marketplace and any other documents supplemental to such initial or subsequent application including but not limited to additional subscription forms, tax forms, transfer documents, and such other documents as may be required pursuant  to any AML/ATF Procedures, from time to time.;

Transaction means a transaction between Participants on the AkinovA Marketplace based upon a particular Protection Instrument;

Transformer means a third party engaged by AkinovA, on behalf of the Participant, to provide the Participant with certain back office services which contractually implement the Transaction;

Transformer Services means the services set out in clause 2; and

Trust Agreement means an agreement to be entered into between the Transformer, the Cover Buyer Participant and a Custodian Bank under which the Custodian Bank will hold collateral received from the Capacity Provider Participants on trust for the Cover Buyer Participant.

2. Transformer Services

2.1 Where a Transaction has been completed on the AkinovA Marketplace, AkinovA will in a timely manner, provide the Transformer with:

(a) the names of the Participants to that Transaction; and

(b) a copy of the Protection Instrument which was the subject of the Transaction

(c) details of the selected trustee; and

(d) Capacity Provider Participant/Cover Buyer Participant contact details.

together the “Transaction Data”.

Reinsurance Contract and Trust Agreement

2.2 Where the Participant is a Cover Buyer Participant or a Broker Participant, AkinovA will:

(a) in a timely manner, request from the Transformer a Reinsurance Contract and Trust Agreement which accurately reflect the terms of the Transaction;

(b) on receipt of that Reinsurance Contract and Trust Agreement from the Transformer, provide the same to the Participant; and

(c) assist in enabling communication between those Participants and the Transformer as required in order to finalise the terms of that Reinsurance Contract and Trust Agreement.

Subscription Instruments

2.3 Where the Participant is a Capacity Provider Participant, AkinovA will:

(a) in a timely manner, request from the Transformer a Subscription Instrument which accurately reflects the terms of the Transaction;

(b) request that the Transformer establish all necessary Separate Account(s) in the names of the Participant;

(c) notify the Capacity Provider Participant of the account details for the Separate Account(s);

(d) on receipt of the Subscription Instrument from the Transformer, provide the same to the Participant; and

(e) provide the Transformer with a list of all Capacity Provider Participants and their respective allocations; and

(f) assist in enabling communication between those Capacity Provider Participants and the Transformer as required in order to finalise the terms of those Subscription Instruments.

 Transfer of Funds

2.4 On execution of the Reinsurance Contract, the Subscription Instrument(s) and the Trust Agreement, AkinovA will request the Transformer to provide details of the remittances required in order to give effect to those agreements including (without limitation):

(a) the amount of collateral to be paid by Capacity Provider Participants into the Separate Account(s); and

(b) the amount of premium to be paid by the Cover Buyer Participant to the Transformer and held in the relevant Separate Account(s).

2.5 On receipt of the information at clause 4, AkinovA will assist in enabling communication with and between the Participants to advise of required remittances.

3. Reporting Services

3.1 Within the necessary timeframe, AkinovA will provide the Participants with the statutory reports in respect of the Separate Accounts.

3.2 Where a Participant has any queries in relation to a report, AkinovA will provide those to the Transformer and liaise with the Transformer and the Participant as necessary to resolve them.

3.3 Where AkinovA receives any ad hoc requests from Participants, it will provide those to the Transformer and assist in enabling communication between the Transformer and the Participants as necessary to enable the Transformer and the Participants to resolve them.

4. Claims Management Services

4.1 Where the Participant is a Cover Buyer Participant or a Broker Participant, and AkinovA receives notification from that Broker Participant or Cover Buyer Participant of a claims event, AkinovA will notify the Transformer in writing.

4.2 On receipt of the notification in paragraph 4.1, the Transformer will:

(a) review and assess the accuracy of the claim in accordance with the terms of the Reinsurance Contract; and

(b) notify AkinovA of its comments and recommendations.

4.3 AkinovA shall communicate and liaise with the relevant Participants in relation to such comments and recommendations.

4.4 Dispute resolution shall follow the terms of the Reinsurance Contract.

4.5 Where AkinovA has received clear written instructions from the relevant Participant, AkinovA will notify the Transformer, on behalf of the Cover Buyer Participant or Broker Participant to instruct the Custodian Bank to release the collateral held pursuant to the terms of the Reinsurance Contract and the Trust Agreement to the Cover Buyer Participant and/or the Broker Participant.

5. Collateral Release Services

5.1 Where AkinovA receives notification from a Capacity Provider Participant of a release event, AkinovA will notify the Transformer in writing and AkinovA shall procure that the Transformer manages the release of collateral per the terms of the Reinsurance Contract and the Trust Agreement and will process collateral release requests promptly.

5.2 AkinovA shall communicate and liaise with the relevant Participants in relation to the outcome of the release event.

5.3 Dispute resolution shall follow the terms of the Reinsurance Contract, Trust Agreement and Subscription Agreement.

5.4 Where AkinovA has received clear written instructions from the relevant Participant, AkinovA will notify the Transformer, on behalf of the Cover Buyer Participant or Broker Participant to instruct the Custodian Bank to release the collateral held pursuant to the Trust Agreement (subject to Cover Buyer consent) to the Capacity Provider Participant.