Lloyds of London/Reinsurance Terms Flashcards
Box
Each syndicate has a box in the underwriting room at Lloyd’s from which business may be transacted with Lloyd’s brokers. Most boxes have computer terminals as well as access to other information technology.
Bordereaux
A list of premiums payable and claims paid or due which is prepared by a coverholder for a managing agent or by a reassured for its reinsurer. They breakdown block premium payments that are made to underwriters and detail claim payments made on behalf of or due from underwriters.
Broker (Lloyds)
Act as the agent of the insured or reinsured to arrange insurance or reinsurance with Lloyd’s syndicates
Cedant
A syndicate or company that transfers a risk exposure under a reinsurance contract.
Cession
A particular risk exposure that is transferred under a reinsurance treaty.
European Union
A political and economic market union made up of 27 Member States: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Facultative Insurance
A reinsurance risk that is placed by means of separately negotiated contract as opposed to one that is ceded under a reinsurance treaty.
Funds at Lloyds
Funds of an approved form that are lodged and held in trust at Lloyd’s as security for a member’s underwriting activities
Hard Market
When availability of some or all classes of insurance or reinsurances is limited relative to demand for such insurance or reinsurance resulting in increased premiums and coverage restrictions.
Lloyd’s 3 Definitions
1.) The society of individual and corporate underwriting members that insure and reinsure risks as members of one or more syndicates.
2.) The underwriting room in the Lloyd’s Building in which managing agents underwrite insurance and reinsurance on behalf of their syndicate members. In this sense, Lloyd’s should be understood as a market place
3.) The Corporation of Lloyd’s which regulates and provides support services to the Lloyd’s market.
Lloyd’s is not an insurance company T or F?
True
Lloyd’s Agent
A firm that is appointed to conduct or arrange surveys of ships and cargoes for Lloyd’s underwriters, other insurers and commercial interests throughout the world.
Lloyd’s Market
This term may refer to the place where business is transacted between managing agents and Lloyd’s brokers, or to the syndicates that provide cover at Lloyd’s.
Name
An individual member underwriting with unlimited liability. Since 6 March 2003 no person has been admitted as a new member to underwrite on an unlimited liability basis.
Nameco
A company that is a corporate member whose members consist of a single individual or a group of connected individuals or their nominees
Open Market Business
Insurance business that may be offered to and placed with any managing agent that is willing to underwrite it on behalf of its managed syndicate. Excludes business that is underwritten pursuant to a binding authority.
Quantam
Latin for amount. Where an insured or reassured makes a claim it must first be established whether the insurer or reinsurer is legally liable to pay the claim (ie it must be shown the relevant loss is covered under the insurance or reinsurance)
Retrocedant
A reinsurer that is reinsured under a retrocession.
Retrocession
A reinsurance of a reinsurer by another reinsurer. It serves to ‘lay-off’ risk.
Retrocessionaire
The reinsurer under a retrocession.
Subrogation
The right of an insurer which has paid a claim under a policy to step into the shoes of the insured so as to exercise in his name all rights he might have with regard to the recovery of the loss which was the subject of the relevant claim paid under the policy up to the amount of that paid claim.
Treaty
A reinsurance contract under which the reassured agrees to offer and the reinsurer agrees to accept all risks of certain size within a defined class.
War and civil war risks exclusion agreement
An agreement between Lloyd’s underwriters and non-marine insurance companies that they will not cover certain war and civil war risks on land.
Xchanging
An outsource provider of policy, premium and claims processing services to the Lloyd’s market and others. These services are delivered via its operating subsidiaries, Ins-Sure Services and Xchanging claims services.
