A binding authority that does not permit the coverholder to underwrite risks on behalf of a Lloyd’s syndicate without prior agreement or confirmation by the syndicate.

Reinsurance where the cover provided is more limited than cover under the primary policy. Example: a hull is insured ‘named perils’ including partial loss under the primary policy but reinsured ‘total loss only’. LCR safeguards the reinsured’s treaty programme from a major loss by redirecting the total loss claim to LCR, normally arranged facultatively.

A life policy under which the premium is payable for a limited period only and not the full duration of the policy term; e.g., a whole life policy may be written with premiums terminating at age 65 while the policy remains in force.

Means the London Insurance Market Network, a computerised network. It merged under WISE (World Insurance E-Commerce) with two other leading electronic networks in 1999.

UK: (1) individual class or type of insurance business; (2) in reinsurance, an amount equal to the ceding company’s retention (a proportional treaty may have a total capacity expressed as X lines of which a reinsurer’s share may be Y lines).
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UK: 1.The proportion of risk accepted by a (re)insurer. In reinsurance the cedant’s retention is a ‘line’ and the capacity of a surplus treaty is a multiple of the ‘line’. A £50,000 retention and a ten-line surplus treaty creates reinsurance capacity of £500,000 enabling a risk of £550,000 to be accepted. 2. The amount accepted by an underwriter when signing a slip is called the ‘written line. 3. Term describing a category of insurance as in ‘personal lines’, i.e. insurances by individuals in their private capacity (e.g. household, private car, etc.).
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A general term that can be used in various ways. This term can be used to refer to a specific kind of insurance; for example, the property insurance line. This term can also be used to group all the policies written for the same insured. Lastly, this can also mean the amount of coverage written for a certain property; for example, a $50,000 line of property insurance.
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A term used to describe a type or class or kind of insurance in relation to the line of insurance appearing in the annual statement (e.g., inland marine, auto liability, fidelity).
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REINSURANCE: Either the limit of insurance to be written which an insurer has set for itself on a class of risk (line limit), or the actual amount which it has accepted on a single risk or other unit. A class of type of insurance (fire, marine or casualty, among others), also known as Line of Business.
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The proportion of an insurance or reinsurance risk that is accepted by an underwriter or which an underwriter is willing to accept. When it refers to a line that is entered on a slip it is commonly expressed as a percentage of the limit of indemnity.

A method of risk financing involving the agreement of a bank to provide finance to fund losses as they occur. Contingency funds arranged in this way may reduce a firm’s borrowing capacity and restrict its investment potential but may be advantageous for firms with a good credit rating. The lender charges for guaranteeing the standby line of credit. If not used there will be no additional charge. See CONTINGENT CAPITAL.

A condition whereby a broker secures an underwriter’s commitment on the monetary amount of his acceptance, even though on closing, this line may represent an increased percentage of a reduced limit. This will happen if the placement is not completed and allows the broker to place 100 per cent of a smaller amount not exceeding the monetary amount with the underwriter. This happens when the broker has doubts about the availability of the capacity for full placement.

another term for chain ladder.