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Lloyd's of London is not itself and insurer. The
Corporation of Lloyd's provides the premises and services necessary for
members to conduct business (such as centralised accounting, policy
checking and signing, claims settlement and risk information). The
members of Lloyd's form themselves into underwriting syndicates and
accept business, of all kinds, only from Lloyd's brokers. Any person who
wishes to become a Lloyd's member is subject to strict requirements, not
least of which is their financial standing. The amount of premium income
each member is allowed to obtain is based on his assets and the amount
deposited in trust with the Corporation. All premiums must be paid into
a trust fund from which all claims and expenses are paid. However;
Lloyd's members are personally liable for their own assets if at any
time the funds of the syndicate are insufficient to meet claims. |