To: The Authority
Dear Sirs
Agreement dated [ ] entered into between [ ] Limited (the "Contractor") and [ ] (the "Authority")
(the "Agreement")
We refer to the Agreement. Unless the context otherwise requires, terms defined in the Agreement shall have the same meaning in this letter.
We act as insurance broker to the Contractor in respect of the Required Insurances and in that capacity we confirm that the Required Insurances which are required to be procured pursuant to clause [ ] and schedule [ ] of the Agreement:
• where appropriate name you and such other persons as are required to be named pursuant to the Agreement for their respective interests;
• are, in our reasonable opinion as insurance brokers, as at today's date, in full force and effect in respect of all the matters specified in the Agreement; and that all premiums due to date in respect of the Required Insurances are paid and the Required Insurances are, to the best of our knowledge and belief, placed with insurers which, as at the time of placement, are reputable and financially sound. We do not, however, make any representations regarding such insurers' current or future solvency or ability to pay claims; and that
• the endorsements set out in Part 3 to Schedule [ ] of the Agreement are as at today's date in full force and effect in respect of the Required Insurances.
We further confirm that the attached cover notes confirm this position.
Pursuant to instructions received from the Contractor and in consideration of your approving our appointment [or continuing appointment] as brokers in connection with the Required Insurances, we hereby undertake in respect of the interests of the Authority in relation to the Required Insurances:
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686 The wording in this Part 4 of Annex 3 is recommended drafting. If agreement to this wording is not in practice achievable, then the parties should agree the best terms reasonably available in the market at the time.