UK: same as closed line (see also written line).
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The underwriter’s participation in a risk after the lines have been reduced, as necessary, to total 100% of the actual amount at risk.
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This refers to the amount of a given risk that an underwriter has agreed to accept. It may be the same as the underwriter’s written line or, if there is signing down, a lower amount. The amount of a syndicate’s signed line should be shown in a table in the policy, where one is issued.
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UK: Underwriter’s participation in a risk after the lines have been shortclosed from the written line (on the slip) to 100 per cent of the amount at risk.
Tag: UK
Significant influence
The influence that an approved person has over any of the controlled functions (1 to 20 in the FSA’s table of controlled functions). Persons with significant influence must: (a) take reasonable steps to ensure that the firm’s regulated business is so organised that it can be controlled effectively; (b) exercise due skill, care and diligence in managing that business; and (c) take reasonable steps to ensure that the business complies with relevant regulatory requirements. (Visit www.fsa.gov.uk).
Signing down
UK: See: SHORT CLOSING.
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The process of reducing. Pro-rata, the proportion of risk that each co-insurer has accepted for a given risk where the slip has been more than 100% subscribed.
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Where a risk is oversubscribed, which is to say that the underwriters’ written lines exceed 100% then, absent some contrary instruction, those lines will be proportionally reduced (‘signed down’) by the broker until they total 100%. An underwriter may insist on preserving his written line in which event the written lines of the other underwriters will be proportionally reduced until they total 100% when added to the preserved written line of the other underwriter.