Members' agent's agreement

A standard form of contract between a member and his member's agent, which sets out the services, duties, powers and remuneration of the member's agent and obligations of the member. The terms of the contract with the exception of the amount of the members’ agent’s remuneration are set by the Council of Lloyd’s. A copy of the current versions of the members' agent's agreement is annexed to the Agency Agreements Byelaw.

Member’s allocated capacity

That part of overall premium limit of a member that is allotted to a particular syndicate for a given year of account. It represents the amount of premium that the Member may accept in respect of that syndicate for that year of account.

Minimum premium

The minimum amount that is payable to an insurer or reinsurer as a premium in respect of a insurance or, more commonly, reinsurance contract which provides for a deposit premium. The minimum premium may be the same as the deposit premium or a different figure.

Misrepresentation (of risk)

A misstatement of fact that is made by the insured or his broker to an underwriter during the negotiation of the placement, amendment or renewal of cover which causes the underwriter to grant, amend or renew cover on an incorrect basis of fact. If the misrepresentation is material the underwriter may avoid the contract on the basis that the insured has breached his duty of utmost good faith. Compare duty of disclosure.

Mixed syndicate

A syndicate which is made up of Names and/or MAPAs and corporate members.

Moral hazard

Those personal characteristics of a prospective insured or its employees or associates that may increase the probability or size of an insurance loss.