Chapter 5- Structure of LM

Question 1

The 3 parts of lloyd

Answer 1

cooperation- management and international relations, structure
Council- 18 members, management, bylaws
Franchise board- risk and profits, new members

Question 2

Members of the council

Answer 2

6 external- capital provider
6 nominated- non society but provides capital e.g. director
6 working- broker or MA

Question 3

Syndicates

Answer 3

Private individuals and investors
Name indicates manageing agent, appoints underwriter
Exists for year, 2 years to close, reinsurance to close
Reinsurance of previous syndicate

Question 4

Equitas

Answer 4

Reconstruction and renewal

Question 5

Members agents

Answer 5

Bridge between managing agent and members (capital providers)

Question 6

Difference between company market and Lloyds

Answer 6

Closest equivalent is the London underwriting centre
PRA regulates solvency, FCA regulates conduct
Individual companies need own international regulations

Question 7

4 types of companies

Answer 7

Limited liability
Mutual indemnity companies- groups pool together
Mutual companies- owned by policyholder, specific interest
Captive insurers- insurer from sister company in same group

Question 8

Service company

Answer 8

Syndicate authorises company to write business on its behalf

Question 9

Legislative reform order 2008

Answer 9

Removed that only Lloyd’s brokers can place through Lloyd’s

Question 10

Lloyds market association

Answer 10

Representation, information and technical services to businesses
5 COB specific business form it
All managing and members agents

Question 11

International underwriting association of London

Answer 11

Linked to London underwriting centre
Protect and strengthen market
Merger of institute of London underwriters and London insurance and reinsurance market association
Efficiency and business attraction

Question 12

Association of British insurers

Answer 12

Research and stats to government
General, life pensions, finances, taxation, investment

Question 13

British insurance brokers association

Answer 13

Promoting
Influencing
Maintaining
Supporting

Question 14

London market regional committee

Answer 14

Lobbying role to represent the sector to regulators and stakeholders

Question 15

London and international insurance brokers association (LIIBA)

Answer 15

Independent trade body
Promotes London by transforming market process
Modernisation
Strengthens relationships
Represents to government

Question 16

X changing insure services

Answer 16

Slip submitting to accounting and settlement
Record risk and premium
Transfer money
Broker must notify agreement parties upon claim
Circulated to those on risk by X changing

Question 17

Franchise board

Answer 17

Market supervision
Adding and removing participants
Guidelines for participants
Approving annual plan and budget
Executive appointments