Chapter 5- Structure of LM Flashcards

1
Q

The 3 parts of Lloyds

A

Corporation- management and international relations, structure
Council- 18 members, management, byelaws
Franchise board - risk and profits, new members

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2
Q

Members of the council

A

6 external- capital provider
6 nominated- non society but provides capital e.g. Director
6 working- broker or MA

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3
Q

Syndicates

A

Private individuals and investors
Name indicates managing agent, appoints underwriter
Exists for year, 2 years to close. Reinsurance to close.
Reinsurance of previous syndicate

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4
Q

Equitas

A

Reconstruction and renewal

All 1992 accounts reinsured into Equitas

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5
Q

Members agents

A

Bridge between managing agent and members (capital providers)

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6
Q

Difference between company market and Lloyds

A

Closest equivalent is the London underwriting centre
PRA regulates solvency, FCA regulates conduct
Individual companies need own international regulations

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7
Q

4 types of companies

A

Limited liability
Mutual indemnity companies- groups pool together
Mutual companies- owned by policyholder, specific interest
Captive insurers- insurer from sister company in same group

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8
Q

Service company

A

Syndicate authorises company to write business on its behalf

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9
Q

Legislative reform order 2008

A

Removed that only Lloyds brokers can place through Lloyds

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10
Q

Lloyds market association

A

Representation, information and technical services to businesses
5 COB specific business form it
All managing and members agents

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11
Q

International underwriting association of London

A

Linked to London underwriting centre
Protect and strengthen market
Merger of institute of London underwriters and London insurance and reinsurance market association
Efficiency and business attraction

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12
Q

Association of British insurers

A

Research and stats to government

General, life pensions, finances, taxation, investment

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13
Q

British insurance brokers association

A

Promoting
Influencing
Maintaining
Supporting

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14
Q

London market regional committee

A

Lobbying role to represent the sector to regulators and stakeholders

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15
Q

London and international insurance brokers association LIIBA

A
Independent trade body
Promotes London by transforming market process
Modernisation
Strengthens relationships
Represents to government
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16
Q

X changing insure services

A

Slip submitting to accounting and settlement
Record risk and premium
Transfer money
Broker must notify agreement parties upon claim
Circulated to those on risk by X changing

17
Q

Franchise board

A
Market supervision
Adding and removing participants
Guidelines for participants
Approving annual plan and budget
Executive appointments