Insurance Cut-Off Dates & Signer Capacity — What Do They Really Mean?

A practical Q&A with Mr. Old Man

Intro

In trade finance, insurance documents often come with wording that looks simple but can cause uncertainty at the time of document examination. Priya recently wrote to ask about two common issues:

1. the meaning of an insurance “attaching after” cut-off date, and
2. whether the signer’s capacity must be explicitly identified.

Let’s take a look.

Question

Dear Mr. Old Man,

Hope this email finds you well.

Requesting you to please clarify the below query.

I came across an insurance certificate which stated:

“This certificate is not valid in respect of insurances attaching after xx.xx.2026.”

Does this refer to (1) the expiry date of the insurance certificate, or (2) the expiry date for claims under this insurance certificate? (Since a claims-expiry clause is not allowed as per ISBP.)

Also, the insurance states: “(Name) authorized by underwriters at Lloyd’s to sign and issue on their behalf.”

However, the capacity of the signer is not identified (i.e., whether as agent or proxy).

Is this correct?

Regards,

Priya

________

Answer

Dear Priya,

Thank you for your question. Here is my response.

1. Meaning of the clause: “This certificate is not valid in respect of insurances attaching after, say, 20 December 2026.”

The key term is “insurances attaching”, which refers to the date when the insurer first comes on risk for a specific shipment. This is normally when the goods first move and become exposed to transit risk.

Therefore, the clause means:

The insurer will not cover any new shipment whose risk commences after 20 December 2026.

This is:

• a cut-off date for new risks,
• not the expiry date of the certificate, and
• not a claims expiry date (which is not acceptable under ISBP rules).

Shipments attaching on or before that date remain covered, and claims may still be submitted later according to policy terms.

2. Must the insurance certificate state the signer’s capacity?

According to ISBP 821 para. K2(a), an insurance document must appear to have been issued and signed by:

• an insurance company or underwriter, or
• their authorized agent or proxy.

The wording on your document: “authorized by underwriters at Lloyd’s to sign and issue on their behalf” demonstrates clear authority to sign.

It is not necessary for the certificate to specify whether the person signs as an agent, proxy, attorney-in-fact, or any other capacity.

Apparent authorization is sufficient under ISBP 821.

I hope this clarifies your questions.

Best regards,

Mr. Old Man