Glossary

Glossary of insurance related terms used by Lloyd's and market participants. The following definitions are intended for general guidance. They do not override or qualify any definition that appears in any Lloyd’s byelaw or regulation, in any contract or in any other document.

An asterisk indicates that there is a legal definition of the relevant term in the Lloyd’s Definitions Byelaw. It should be noted that other byelaws may have legal definitions of terms that do not appear in the Definitions Byelaw. Copies of Lloyd’s byelaws may be found here. 

Tenderer

A member that seeks to sell some or all of his underwriting capacity in a capacity auction.

Term life insurance

A life insurance policy that pays the sum insured only if the life assured dies within the period of the policy which is for a fixed period.

Terms of business agreement TOBA

Each Lloyd’s broker that wishes to do business with a managing agent must enter into an agreement with the managing agent which records the general terms and conditions on which business will be conducted between them.

Third party

Someone other than the insured or his insurer who has suffered injury or loss.

Third party liability

The liability that an insured has to a third party.

Total loss

Where the subject matter of an insurance is lost, destroyed or damaged beyond repair.

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.

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