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.
Latin for from the beginning.
The calendar or accounting year in which a loss occurs.
The process by which a firm may obtain registration as a Lloyd’s broker.
Accredited Lloyd's broker
A Lloyd’s broker.
The individual at the underwriting box with principal authority to accept insurance and reinsurance risk on behalf of the members of a syndicate.
Actual Total Loss
This term derives from section 57 of the Marine Insurance Act 1906 (MIA) and refers to situations in marine insurance where:
(a) the subject matter of the insurance is destroyed
(b) the subject matter of the insurance is so damaged as to be no longer be capable of still being described as the thing insured; or
(c) the insured is deprived of the subject matter of the insurance forever. Section 58 of the MIA adds that where there is no news of a missing ship then after a reasonable period an actual loss may be presumed.
See loss adjuster
An additional or return premium that is payable in relation to a deposit premium depending on the performance of an insurance or reinsurance contract.
Someone who acts for another person (the principal) usually for reward.
There are four main classes of agent that may be involved in the underwriting of insurance and reinsurance risks by Lloyd’s underwriters: members’ agents, managing agents, brokers and coverholders. In addition, there are Lloyd’s agents which are independent businesses that provide surveys and loss adjusting services to managing agents, insurance companies and others on a worldwide basis. Further in some situations one underwriter may act as the agent of other underwriters (see general underwriters’ agreement).
Total (limit of indemnity, premium, retention etc).
Aggregate excess of loss reinsurance
A form of excess of loss reinsurance in which the excess and the limit of liability are expressed as annual aggregate amounts.
Agreed business plan
A syndicate business plan that has been approved by or on behalf of Lloyd’s Franchise Board. No managing agent may underwrite for a syndicate without an agreed syndicate business plan. Agreed syndicate business plans may be amended with the agreement of the Franchise Board or someone acting on its behalf.
Agreed value policy
An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without any adjustment for depreciation or appreciation.
A corporate member of a syndicate that is directly or indirectly owned by the same firm that owns the managing agent of the syndicate.
A property insurance which covers any accidental loss or damage that is not specifically excluded under the policy.
This may refer to a member’s allocated capacity or syndicate allocated capacity.
The reporting of syndicate results on a calendar year basis, with profit taking being restricted to earned premiums.
This term refers to the reconstitution of a syndicate as an annual business venture where insurance and reinsurance business is written on a year of account basis.
In the context of property insurance an increase in value of the property insured.
An individual who has been approved by the Financial Services Authority (FSA) to perform a FSA controlled function for an authorised person.