Glossary

Syndicate [*]

A member or group of members underwriting insurance business at Lloyd’s through the agency of a managing agent or a substitute agent to which a syndicate number is assigned by the Council. Except where it is expressly otherwise provided the several groups of members to which in different years a particular syndicate number is assigned by or under the authority of the Council shall be treated as the same syndicate, notwithstanding that they may not comprise the same members with the same individual participations.

Syndicate allocated capacity [*]

In relation to a syndicate, the aggregate of the member’s syndicate premium limits of all the members for the time being of the syndicate.

Syndicate business forecast

A statement of the expected range of results of each open year of account of a syndicate that is submitted to Lloyd’s by its managing agent in mid year together with the managing agent’s expectations for the next year of account.

Syndicate business plan

A plan of the underwriting of a given syndicate for a given year of account that is prepared by the managing agent of a syndicate and submitted to Lloyd’s for approval in advance of the commencement of underwriting for that year of account.

Syndicate number

The unique identifying number assigned to a syndicate by the Council of Lloyd’s.

Syndicate pseudonym

A series of letters used to identify a syndicate which together with its number are contained in the underwriting stamp of the syndicate.

Syndicate reinsurance

The reinsurance of a syndicate by one or more reinsurers. Such reinsurance can only be arranged by a Lloyd’s broker.

Syndicate stamp

This term may refer to – (a) a document which lists the names of the members of a syndicate for a given year of account and the amount of each member’s overall premium limit that is allocated to that syndicate; (b) the syndicate allocated capacity of a syndicate; or (c) the underwriting stamp of a syndicate.

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.

Uberrima fides

Latin for utmost good faith.

Unaligned member

A member that is either (a) not affiliated to the managing agent of a particular syndicate; or (b) not affiliated to any managing agent.

Under insurance

Where the sum insured does not represent the true value of the property insured. See average for an explanation of the consequences of under insurance.

Underwrite

This term may refer to (a) The process of evaluating, defining and pricing insurance and reinsurance risks including where appropriate the rejection of such risks. (b) The acceptance of the obligation to pay or indemnify the insured or reassured under a contract of insurance or reinsurance.

Underwriter

Depending on the context this term may refer to: (a) the individual who is responsible for underwriting a particular insurance or reinsurance contract and who is either an employee of a managing agent, an insurance company or reinsurance company or an employee of a coverholder or any similar underwriting agent. (b) an individual member or company that insures or reinsures a risk.