Question

Explain the basic characteristics of Lloyd's Corporation.

Answer 1

Technically Lloyd's corporation is not an insurance company, but is the world's leading insurance market that provides services and physical facilities for its members to write specialized lines of insurance.

A society of members who underwrite insurance in syndicates ,  insurance is written by various syndicates, and members receive profits or bear losses in proportion to their share in the syndicate; new individual members now have limited legal liability; corporations with limited legal liaibility can also join Lloyd's of London .

Lloyd's is licensed only in a small number of jurisdictions in the United States. In the other states, Lloyd's must operate as a nonadmitted insurer .