{
  "id": "clause-premium-payment-warranty",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-premium-payment-warranty",
      "lang": "en",
      "type": "clause",
      "title": "Premium Payment Warranty (LSW3000/3001)",
      "shortDefinition": "The premium payment warranty requires the policyholder or cedent to pay the premium within a fixed period; if the deadline is missed the contract can terminate automatically or be cancelled by the insurer.",
      "synonyms": [
        "LSW3000",
        "LSW3001"
      ],
      "linesOfBusiness": [
        "International programmes",
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "London Market",
        "Premium"
      ],
      "relations": {
        "relatedTerms": [
          "term-einloesungsklausel",
          "term-musterbedingungen"
        ],
        "partOf": [],
        "appliesTo": [
          "cov-property-all-risks"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "warranty",
        "origin": "london-market",
        "favours": "insurer",
        "negotiability": "standard",
        "standardWordings": [
          "LSW3000",
          "LSW3001"
        ]
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.2.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/clause/premium-payment-warranty-lsw3000-3001/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/premium-payment-warranty-lsw3000-3001/",
      "body": "## Purpose\n\nIn the London market, premium is often collected via a broker with a time lag rather than at inception. The premium payment warranty (LSW3000 for direct, LSW3001 for reinsurance contracts) secures the insurer a binding payment deadline, usually 30 to 45 days from inception, and makes compliance with that deadline a condition of the contract's validity (a \"warranty\") rather than a mere ancillary duty.\n\n## Effect and limits\n\nIf premium is not paid on time, the contract does not lapse immediately; instead the insurer gains the right to cancel it after a further notice period stated in the clause (commonly 15 days), and if payment is made within that grace period the cancellation is treated as revoked. On cancellation, premium remains due pro rata for the period the insurer was on risk, and a loss that otherwise would have been covered and occurred before the deadline generally remains insured.\n\n## Negotiation and practice\n\nProgramme leaders and cedents should design internal payment processes so that deadlines are met even where payment flows through several tiers via a broker, since a warranty — unlike an ordinary contractual duty — is construed strictly. For instalment premiums, it must be checked whether each instalment is separately subject to the warranty or only the first payment."
    },
    "de": {
      "id": "clause-premium-payment-warranty",
      "lang": "de",
      "type": "clause",
      "title": "Premium Payment Warranty (LSW3000/3001)",
      "shortDefinition": "Die Premium Payment Warranty verpflichtet den Versicherungsnehmer oder Zedenten, die Prämie innerhalb einer festen Frist zu zahlen; bei Fristversäumnis kann der Vertrag automatisch enden oder durch den Versicherer gekündigt werden.",
      "synonyms": [
        "Premium Payment Warranty",
        "LSW3000",
        "LSW3001"
      ],
      "linesOfBusiness": [
        "Internationale Programme",
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "London Market",
        "Prämie"
      ],
      "relations": {
        "relatedTerms": [
          "term-einloesungsklausel",
          "term-musterbedingungen"
        ],
        "partOf": [],
        "appliesTo": [
          "cov-property-all-risks"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "warranty",
        "origin": "london-market",
        "favours": "insurer",
        "negotiability": "standard",
        "standardWordings": [
          "LSW3000",
          "LSW3001"
        ]
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.2.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/klausel/premium-payment-warranty-lsw3000-3001/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/premium-payment-warranty-lsw3000-3001/",
      "body": "## Zweck\n\nIm London Market wird die Prämie häufig nicht bei Vertragsbeginn, sondern über einen Broker mit zeitlichem Verzug inkassiert. Die Premium Payment Warranty (LSW3000 für Erst-, LSW3001 für Rückversicherungsverträge) sichert dem Versicherer eine verbindliche Zahlungsfrist, meist 30 bis 45 Tage ab Beginn, und macht die Einhaltung dieser Frist zur Wirksamkeitsvoraussetzung («warranty») des Vertrags statt zu einer blossen Nebenpflicht.\n\n## Wirkung und Grenzen\n\nWird die Prämie nicht fristgerecht gezahlt, erlischt der Vertrag nicht sofort, sondern der Versicherer erhält das Recht, ihn mit einer weiteren, in der Klausel festgelegten Kündigungsfrist (häufig 15 Tage) zu beenden; erfolgt die Zahlung innerhalb dieser Nachfrist, gilt die Kündigung als zurückgenommen. Im Kündigungsfall bleibt die Prämie anteilig für die Zeit des tatsächlichen Risikoeinschlusses geschuldet, und ein vor Fristablauf eingetretener, sonst gedeckter Schaden bleibt regelmässig versichert.\n\n## Verhandlung und Praxis\n\nProgrammführer und Zedenten sollten interne Zahlungsprozesse so gestalten, dass Fristen selbst bei mehrstufigen Zahlungswegen über Broker eingehalten werden, da eine Warranty – anders als eine gewöhnliche vertragliche Nebenpflicht – strikt auszulegen ist. Bei Ratenzahlungen ist zu prüfen, ob jede Rate gesondert der Warranty unterliegt oder nur die erste Zahlung."
    }
  }
}