A company that is a corporate member whose members consist of a single individual or a group of connected individuals or their nominees. Many Namecos were formed by Names who wished to cease underwriting on an unlimited liability basis.
Insurance Encyclopedia
Lloyd’s of London
US: An association of independent underwriters operating in England. It is not an insurance company; rather, it operates as a marketplace for large and/or unusual insurance exposures where brokers representing insurance applicants are able to contract with underwriters offering coverage.
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An association of individuals, called names, or groups of individuals who write insurance for their own accounts. Lloyd’s had its beginning in 17th century London in Edward Lloyd’s coffeehouse.
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Lloyd’s of London is a facility under which separate insurers can accept or reject to insure the risks presented to them by a broker. Many important precedents for the insurance industry are set by Lloyd’s.
Lloyd’s One Outlet Rule
A rule at Lloyd’s that a Broker must not be unduly dependent on one insurer in placing his business.
Lloyd’s One Source Rule
A rule at Lloyd’s that a Broker must not be unduly dependent on one predominant source of business.
Lloyd’s Policy Signing Office Ltd
Lloyd’s Policy Signing Office used to be part of the Corporation of Lloyd’s. Following its incorporation it is now part of the Xchanging group of companies.
Lloyd’s Register of Shipping
It is an organization independent of the corporation of Lloyd’s and publishes ‘Register of Ships’ together with other ancillary publications. The Register of shipping’ published annually contains particulars of all known ocean-going merchant ships of 100 tons gross and upwards. the Register is kept up-to-date by means of cumulative monthly supplements containing changes of name, ownership, flag, tonnage, etc., for all ships together with a cumulative list of new ships not recorded in the Register itself.
Lloyd’s Regulatory Board
The committee of the Council of Lloyd’s that was formerly responsible for the regulation of the Lloyd’s market. It was abolished in 2002 in anticipation of the transfer of its responsibilities to Lloyd’s Franchise Board.
Lloyd’s Slip
There are two types of underwriting slip: a placing slip and a signing slip. A placing slip is a document created by a broker that contains a summary of the terms of a proposed insurance or reinsurance contract which is then presented by the broker to selected underwriters for their consideration. Underwriters may delete, amend or add terms on a slip as they consider appropriate for the purpose of providing an indication or a quotation. A signing slip is a document that is created by a Lloyd’s broker after a quotation has been accepted for the purpose of processing premiums under the contract that is evidenced by the placing slip. It is a cleaned up version of the final placing slip and shows underwriters’ stamps, signed lines and underwriting references, these details being inserted by each underwriter at the request of the broker. Provided that it shows the underwriters’ stamps, signed lines and underwriting references a placing slip may be used as a signing slip.
Lloyd’s Solvency Test
A test that is undertaken annually to ensure that members of the Society have sufficient eligible assets to meet their underwriting liabilities. The test is undertaken at member level and also on an aggregate basis for all members taking in account the centrally held assets of the Society such as the New Central Fund. Any member that fails the solvency test at member level will be required to provide additional funds or cease underwriting. The centrally held assets of the Society must be sufficient to cover any shortfall of assets at member level.
Lloyd’s syndicate
A group of individuals at Lloyd’s of London who have entrusted their assets to a team of underwriters who underwrite on behalf of the group.
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A member or group of members underwriting insurance business at Lloyd’s through the agency of a managing agent or a substitute agent to which a syndicate number is assigned by the Council. Except where it is expressly otherwise provided the several groups of members to which in different years a particular syndicate number is assigned by or under the authority of the Council shall be treated as the same syndicate, notwithstanding that they may not comprise the same members with the same individual participations. [*] = Syndicate allocated capacity = In relation to a syndicate, the aggregate of the member’s syndicate premium limits of all the members for the time being of the syndicate.
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A group of Lloyd’s underwriters, with one person accepting or rejecting risks on the group’s behalf.
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UK: Group of underwriting members whose syndicate is run by a managing agent whose active underwriter accepts risks on behalf of the syndicate. Each syndicate member takes an agreed share of the risk strictly for his own account. Each syndicate is given its own number and is allowed to underwrite up to an allocated premium limit in any given year. At present a syndicate is formed for an underwriting year as an annual venture, now being phased out.