Permission granted by a Lloyd’s broker to a nonLloyd’s broker who uses the name, pseudonym, etc., of the Lloyd’s broker to place business with or on behalf of The underwriting members. Lloyd’s broker must intend becoming a Lloyd’s registered broker within three years and confine the arrangement to one Lloyd’s broker. The non-Lloyd’s broker must undertake to submit to all Lloyd’s bye-laws and regulations. The Lloyd’s broker is responsible for premiums due to the underwriting members.
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An arrangement between a Lloyd’s broker and a non-Lloyd’s broker whereby business is transacted at Lloyd’s by the non-Lloyd’s broker using the Lloyd’s broker’s slips. Also known colloquially as a piggy-back or flag of convenience arrangement.

A broker operating in the Room at Lloyd’s under an umbrella arrangement.

Liability policy with high limits covering over the top of underlying, primary, liability insurances subject to a self-insured retention. Cover is usually broader than the primary cover and may have a drop down provision.
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A policy designed to provide protection against catastrophic losses. It generally is written over various primary liability policies, such as the business auto policy (BAP), commercial general liability (CGL) policy, watercraft and aircraft liability policies, and employers liability coverage. The umbrella policy serves three purposes it provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims it drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims and it provides protection against some claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention (SIR).

Lloyd’s syndicate member who has no connection with the controller of the managing agent of that syndicate.
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A member that is either (a) not affiliated to the managing agent of a particular syndicate; or (b) not affiliated to any managing agent.

Pension scheme assets that have not yet been used to provide pension benefits.

Occupational pension scheme that is not approved by the Inland Revenue. It forgoes the tax advantages of approved schemes.

Occurs when the amount of insurance is less than the full value of the property insured and means that the insured pays a smaller premium than that required as the rate is fixed on the basis of full values being insured. It leads to partial loss claims being scaled down by average. See FIRST LOSS POLICIES.
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the situation where the sums insured represent less than the total value of the property at risk.

Occurs where defined benefit scheme’s assets are less than its accrued liabilities. Under the minimum funding requirement the employer and the trustees must agree a schedule to eliminate the deficit over a five-year period. Extra contributions from the employer may correct the position.

The basic or primary layer of coverage, the initial policy that will respond to the covered loss. Only when the limits of the underlying policy have been exhausted will the other respective layers of insurance respond, as with the case of an excess or umbrella policy in liability insurance.