Sunset clause

A clause which restricts cover to claims notified during the period from the inception of a (re) insurance contract to a specified date after the expiry of that contract.

Surplus lines insurance

These are insurance risks that have been certified by a local broker has having been declined by a prescribed number (usually three or four) of licensed insurers in a given state in the United States of America and which therefore be underwritten as “surplus lines”.

Surplus lines insurer

An insurer that underwrites surplus lines insurance in the USA. Lloyd’s underwriters are surplus lines insurers in all jurisdictions of the USA except Kentucky and the US Virgin Islands.

Surplus treaty or surplus lines treaty

A type of reinsurance under which bands of cover known as lines are granted above a given retention which is referred to as the cedant’s line. Each line is of equivalent size and the capacity of the treaty is expressed as a multiple of the cedant’s line so that with a retention of £2 million, a three line treaty would provide reinsurance cover of £6 million (£2 million X 3) excess of £2 million. The reinsurer receives an equivalent proportion of the full risk premium.
A surplus treaty is a form of proportional reinsurance.

Surrender

The termination of a life insurance policy while the life assured is still alive in return for a cash sum.

Syndicate [*]

A single corporate member or a group of members to which a unique identifying number has been assigned by the Council of Lloyd’s and which underwrites insurance and/or reinsurance at Lloyd’s through the agency of a managing agent.
The constitution of a syndicate may vary from year either in terms of the number of its members or the levels of their respective participation in it.

Syndicate allocated capacity [*]

The aggregate of the premium income limits of each of the members of the syndicate for a given year of account, stated in pounds sterling. It represents the amount of premium that the members of a syndicate may accept in that year of account without the benefit of a qualifying quota share reinsurance contract.

Syndicate business forecast

A statement of the expected range of results of each open year of account of a syndicate that is submitted to Lloyd’s by its managing agent in mid year together with the managing agent’s expectations for the next year of account.

Syndicate business plan

A plan of the underwriting of a given syndicate for a given year of account that is prepared by the managing agent of a syndicate and submitted to Lloyd’s for approval in advance of the commencement of underwriting for that year of account.

Syndicate number

The unique identifying number has been assigned to a syndicate by the Council of Lloyd’s

Syndicate pseudonym

A series of letters used to identify a syndicate which together with its number are contained in the underwriting stamp of the syndicate.

Syndicate reinsurance

The reinsurance of a syndicate by one or more reinsurers. Such reinsurance can only be arranged by a Lloyd’s broker.

Syndicate stamp

This term may refer to –
(a) a document which lists the names of the members of a syndicate for a given year of account and the amount of each member’s overall premium limit that is allocated to that syndicate;
(b) the syndicate allocated capacity of a syndicate; or
(c) the underwriting stamp of a syndicate.