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Status: You are viewing the version of the handbook as on 2005-06-30.

LLD 16.2 Application

LLD 16.2.1R

This chapter applies to:

  1. (1)

    the Society; and

  2. (2)

    managing agents.

Purpose

LLD 16.2.2G

The purpose of this chapter is to:

  1. (1)

    set out specific requirements for the prudential management of the insurance business of Lloyd's members, including management of the assets supporting that business; and

  2. (2)

    clarify how PRU rules and guidance are to apply to the insurance business of Lloyd's members.

LLD 16.2.3G

Members bear the risk in respect of their insurance business and so it is their responsibility to hold financial resources to support that business. A member participates on a several basis, for its own account. In practice managing agents manage the business and the Society manages the market. Should a member hold insufficient financial resources, the Society's own assets may be used to support that member's business.