Required minimum margin of solvency for a Lloyd’s member calculated in accordance with FSA rules for general business and longterm business. See ANNUAL SOLVENCY TEST; MEMBERS’ ANNUAL SOLVENCY TEST; REQUIRED MINIMUM MARGIN.

Member’s regular payment to the pension scheme as set out in the scheme’s rules.

Allows Lloyd’s members to participate in more syndicates than normally possible. The members’ agents pool underwriting capacity and the members spread their risk by taking smaller lines across more syndicates. A minimum of five members’ agents must participate in each MAPA with no more than 10 per cent of MAPA capacity being allocated to any one syndicate. Corporate members wishing to participate must appoint a member’s agent in order to do so.

Each Lloyd’s member must have sufficient assets to meet liabilities plus a prescribed margin (see required minimum margin (general business) and required minimum margin (longterm business). If there is a shortfall the member must provide additional assets. The members’ Funds at Lloyd’s usually covers the deficiency. Ultimately Lloyd’s must show the FSA that it has sufficient assets to cover any aggregate shortfall of all members after the prescribed surplus tests.

Voluntary associations of individuals. They must sue or be sued in the names of the members of the committee, or the officers, on behalf of themselves and all other members. Members are liable only to the extent of their subscriptions. Public liability insurances cover add the personal liability of members as well as member to member liability.

In addition to members’ Funds at Lloyd’s, members must prove that they have sufficient net eligible means (at least £350,000 in 2002) to commence or continue underwriting. This wealth is called upon if the premium trust funds and Funds at Lloyd’s prove insufficient.

Discontinuance of membership in an organisation or group. Terminates membership eligibility under a group policy or employee benefit scheme due to end of employment or other change in circumstances. Under group life policies the departing member may benefit from a continuation option.

Document lodged at Companies House setting out the objects and the powers of a company incorporated under the Companies Act. Any acts outside the objects clause are ultra vires and therefore invalid. Directors making contracts’ that are ultra vires may be personally liable. See DIRECTORS’ AND OFFICERS’ LIABILITY.
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The document that sets out the constitution of a company and states its objects. It is complemented by by-laws, referred to as Articles of association.

Voluntary agreement between motor insurers replacing the knock for knock agreement. Insurers, whose respective insureds have been involved in a collision, agree, when liability attaches to their insured, to pay the other insurer’s accidental damage claim without contesting the amount claimed. This saving in administrative costs is a part of the reduction in paper work exchange.

Framework for the relati ship between the FSA and the Financial Ombudsman Service (FOS). It reflects the fact that whilst each is operationally independent, they need to cooperate and communicate constructively with each other in order to carry out their respective functions effectively. A similar undertaking links the FSA and the Financial Services Compensation Scheme.