Lloyd’s Franchise Board

The committee of the Council of Lloyd’s which is responsible for developing and directing the implementation of the commercial policy of the Lloyd’s franchise and for directing and regulating the business at insurance of Lloyd’s with a view to the realisation of the franchise goal. Lloyd’s Franchise Board is answerable to the Council of Lloyd’s.

Lloyd’s market

This term may refer to the place where business is transacted between managing agents and Lloyd’s brokers (see underwriting room) or to the syndicates that provide cover at Lloyd’s.

Lloyd's Market Board

The committee of the Council of Lloyd’s that was formerly responsible for the development and growth of Lloyd's worldwide business. It was abolished in 2002 in anticipation of the transfer of its responsibilities to Lloyd’s Franchise Board.

Lloyd's Regulatory Board

The committee of the Council of Lloyd’s that was formerly responsible for the regulation of the Lloyd’s market. It was abolished in 2002 in anticipation of the transfer of its responsibilities to Lloyd’s Franchise Board

Lloyd’s Policy Signing Office Ltd

Lloyd’s Policy Signing Office used to be part of the Corporation of Lloyd’s. Following its incorporation it is now part of the Xchanging group of companies.

LMP slip

A standard form slip that managing agents must use to underwrite insurance at Lloyd’s except (a) if the insured requires some other slip to be used; or (b) the slip relates to motor business, personal lines including motor business or term life business and the slip will not be processed by LPSO Ltd. For further information visit www.lmp2001.com.

Lloyd’s solvency test

A test that is undertaken annually to ensure that members of the Society have sufficient eligible assets to meet their underwriting liabilities. The test is undertaken at member level and also on an aggregate basis for all members taking in account the centrally held assets of the Society such as the New Central Fund. Any member that fails the solvency test at member level will be required to provide additional funds or cease underwriting. The centrally held assets of the Society must be sufficient to cover any shortfall of assets at member level.

Lloyd’s underwriters

This term may variously refer to -
(a) the professional underwriters who are employed by managing agents to underwrite insurance and reinsurance business on behalf of the members of the syndicates that those agents manage.
(b) the members of one or more syndicates that underwrite a particular policy; or
(b) all members (of the Society) collectively.

Lloyd’s waiter

A liveried member of Lloyd’s staff

Long tail (risk)

This refers to a type of insurance where claims may be made many years after the period of the insurance has expired. Liability insurance is an example of long tail business. The opposite of long tail business is short tail business

Loss

This term generally refers to some injury, harm, damage or financial deteriment that a person sustains. Losses may be insured or uninsured. Whether a loss is covered by a policy or certificate of insurance depends on the terms of that document and local law.

Loss event

The event which causes a loss, for example a fire or hurricane.

Loss adjuster

A person who is appointed to investigate the circumstances of a claim under an insurance policy and to advise on the amount that is payable to the policyholder in order to settle that claim. Loss adjusters are generally appointed by underwriters but sometimes policyholders appoint their own loss adjusters to negotiate claims on their behalf.