Crystal provides general information only and does not constitute solicitation of business. Whilst all care has been taken to ensure the accuracy of the information Lloyd’s does not accept any responsibility for any errors or omissions. Lloyd’s is not responsible or liable for any alleged damage arising from reliance upon the information provided.
Lloyd’s in the US
Before using the US content on Crystal, it is important to understand the unique nature of Lloyd’s and how it operates in the US.
Lloyd’s is an insurance market, not an insurance company. It consists of a number of separate businesses (syndicates) which underwrite risks on a shared but competitive basis. Business is brought to these syndicates by a worldwide network of brokers working with Lloyd’s brokers. All US business underwritten at Lloyd’s must be placed in accordance with US regulatory requirements. Coverage must comply with local law.
Underwriters at Lloyd’s are licensed only in Kentucky, Illinois and the US Virgin Islands (“USVI”) and are eligible surplus lines insurers in all US jurisdictions except Kentucky and the USVI. Lloyd’s underwriters are also accredited reinsurers in all States. Insurance policies issued by underwriters are not protected or guaranteed by State insurance guaranty associations or insolvency funds, except in States where licensed.
New insurance enquiries from US residents should be directed to a surplus lines insurance agent or broker licensed to conduct business in the relevant state. Details can be found on the NAPSLO website.
Surplus Lines
Surplus Lines information was prepared by outside US counsel for use by the Lloyd’s market. The information is not intended for use by person(s) and/or entities other than Lloyd’s. The information is not a substitute for legal advice and detailed questions should be addressed to the user’s own counsel.
The information is, by necessity, a summary and does not replace the need for competent legal and regulatory advice on specific products or situations. Failure to obtain advice when needed could result in violations of US “doing business laws”, and the consequences of a proven violation could be serious, including but not limited to significant financial penalties or other financial loss, and loss of trading rights.
The following surveys were updated and are correct as at August 2005:
- Surplus Lines Exemptions, including Industrial Insured Exemptions and Independently Procured Exemptions
- Automatically Exportable Surplus Business Class List
- Surplus Lines Statutes Prohibiting Heath Insurance Coverage.
The cancellation and non-renewal information is correct as at January 2007.
US Sanctions Survey
The memorandum and sanctions advice (“the Paper”) has been prepared by outside US Counsel for use the Lloyd’s market.
The Paper does not seek to prescribe an all-encompassing response to the operating difficulties that US sanctions create for the Lloyd’s market, as no single solution exists. Rather, the Paper is intended to help identify business activities that are most likely to implicate various sanctions regimes and will provide some indication of possible steps to reduce risks. This Paper cannot and should not be a substitute for legal advice in respect of any business decisions that underwriters may take that are affected by international sanctions regimes.
The Paper is correct as at May 2006. It will be reviewed and amended from time to time. However, you should check the US Treasury Department’s Office of Foreign Assets Control website and the Bank of England website.
