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LLD 25.3 Interpretation

LLD 25.3.1R

For the purpose of this Chapter LLD 25 and the application of SUP App 2 to the Society:

  1. (1)

    "capital resources", as the context requires:

    1. (a)

      in relation to the Society's own capital resources, means its own capital resources calculated in accordance with PRU 2.2.12 R;

    2. (b)

      in relation to a member's capital resources, means the member's capital resources calculated in accordance with LLD 19.3.10 R;

    3. (c)

      in relation to the aggregate capital resources of the Society and the members supporting the insurance business of the members, means the aggregate of the capital resources in (1)(a) and (b) but excluding the Society's callable contributions.

  2. (2)

    "guarantee fund":

    1. (a)

      in relation to the general insurance business carried on by members, means the amount of capital resources required in order to comply with PRU 2.2.18 R, LLD 19.3.4 R and LLD 19.3.14 R; and the "member's share of the guarantee fund" for general insurance business means the result of the calculation set out in LLD 19.3.15 R;

    2. (b)

      in relation to the long-term insurance business carried on by members, means the amount of capital resources required in order to comply with PRU 2.2.17 R and LLD 19.3.4 R; and the "member's share of the guarantee fund" for long-term insurance business means the result of the calculation set out in LLD 19.3.13 R;

  3. (3)

    "required margin of solvency":

    1. (a)

      in relation to the general insurance business carried on by members, means the higher of the Society GICR and the general insurance capital requirement for the members in aggregate; and

    2. (b)

      in relation to the long-term insurance business carried on by members, means the long-term insurance capital requirement for the members in aggregate.

LLD 25.3.2G

The calculations of the base capital resources requirement, the long-term insurance capital requirement and the general insurance capital requirement for members and for the members in aggregate are set out in PRU 2.1 and in LLD 19. LLD 19.2.13 R requires the Society to calculate the Society GICR. PRU 2.2.17 R and PRU 2.2.18 R, as applied to Lloyd's and modified by LLD 19.3.4 R and LLD 19.3.13 R to LLD 19.3.15 R, contain requirements for the calculation of the guarantee fund and the member's share of the guarantee fund.