Chapter Five Flashcards
Insurance Market
What is the significance of the Market Reform Contract (MRC)?
The MRC is a document that outlines the terms and conditions of a risk to be placed in the market, ensuring clarity and standardisation.
What is the role of the council of Lloyds?
The council of Lloyds is responsible for the management and supervision of the Lloyds market.
How does the London market handle claims?
Claims are presented by brokers to the relevant insurers who the agree on the claims and facilitate payment.
What does ‘reinsurance to close’ ((RITC) mean?
RITC is a process where a syndicate reinsures its outstanding liabilities into the next year of account.
What does the term ‘syndicate’ refer to in the context of the Lloyds market?
A syndicate refers to a group of private individuals or corporate investors who provide financial backing of risks.
What is the purpose of the Lloyds market association (LMA)?
The LMA provides representation, information and technical services to underwriting businesses in the Lloyds market.
What is the role of members agents in the Lloyds market?
Members agents advise individual names or members on their investments in the Lloyds market.
What is the function of managing agents in the Lloyds market?
Managing agents are companies that manage the underwriting of one or more syndicates and appoint underwriters to accept risks.
Who are the main participants in the London market?
The main participants include insurance and reinsurance companies, Lloyds syndicates and protection and indemnity clubs.
How is the Lloyds market unique compared to other insurance markets?
The Lloyds market is unique as it focuses on placing unusual and complex risks from around the world.
