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

LLD 24.6 Internal-contagion risk

Application of PRU 7.6

LLD 24.6.1R

PRU 7.6 applies to managing agents and to the Society in accordance with:

  1. (1)

    for managing agents, LLD 16.3.3 R; and

  2. (2)

    for the Society, LLD 16.3.1 R.

Restriction of business to insurance

LLD 24.6.2R

The Society and managing agents must take all reasonable steps to ensure that:

  1. (1)

    a corporate member does not carry on any commercial business other than insurance business and activities arising directly from that business; and

  2. (2)

    individual members do not, in their capacity as underwriting members, carry on any commercial business other than insurance business and activities arising directly from that business.

Syndicates not to carry on both general and long-term business

LLD 24.6.3R

A managing agent must not permit both general insurance business and long-term insurance business to be carried on together through any syndicate managed by it.

LLD 24.6.4G

PRU 7.6.17 G contains guidance setting out the FSA policy (reflecting requirements of the Insurance Directives) in relation to the carrying on together of general and long-term insurance business.