Overseas Underwriting

The Council may from time to time prescribe conditions and requirements regarding the provision, or the procurement of the provision, by members of the Society of funds in respect of and incidental to the establishment and maintenance of overseas deposits.

Without prejudice to the generality of paragraph 1, any conditions and requirements prescribed under that paragraph –

 (a) may impose requirements which are absolute or which are to vary from time to time by reference to such factors as may be specified or determined in accordance with such conditions and requirements;

 (b) may make different provision for different cases or different classes of cases;

 (c) may include requirements that members of the Society provide, or procure the provision of, funds by way of loans to, or deposits with, the Society, any deposit company or any other person whether as a trustee or otherwise and whether out of members’ premiums trust funds or otherwise;

 (d) may include a requirement that underwriting agents exercise any powers which they have under any premiums trust deed to transfer funds to any central syndicate sub-fund held under that premiums trust deed;

 (e) may include requirements –

  (i) to complete applications, notices and other documents in such form as may be prescribed by the Council;

  (ii) to execute and deliver or otherwise become a party to any deed, trust deed, contract, assignment, undertaking, mandate, authority, power of attorney, or other document or instrument as may be prescribed by the Council;

 (f) may specify circumstances in which members of the Society are to be exempt from any such condition or requirement or may be excused from compliance with any such condition or requirement to such an extent as the Council may think fit;

 (g) may include requirements that –

  (i) members of the Society provide funds in different currencies;

  (ii) provide for the determination of the amount to be provided in accordance with a specified scale or other specified factor;

  (iii) may prescribe the manner and timing of the provision of funds;

  (iv) may, in the case of loans or deposits, provide that any such loan or deposit be made in a particular form and on particular terms and at any rate of interest (or without interest) and at any time or times and generally upon any terms whatsoever as to repayment; and

(h) may contain incidental, supplementary and transitional provisions.

The countries in which overseas deposits are to be made and the amounts of such overseas deposits and generally the manner in which such overseas deposits are to be dealt with and applied shall be in the absolute discretion of the Council, if such overseas deposits are held by the Society, or the directors of the deposit company, if such overseas deposits are held by the deposit company. Nothing contained in [Consolidated Requirements Part 2 > General Operational Matters > Overseas Underwriting] or in any condition or requirement made under [Consolidated Requirements Part 2 > General Operational Matters > Overseas Underwriting] shall be construed or operate as in any manner limiting such discretion or as giving any member of the Society any right, title or interest to require any such overseas deposit or any part of such overseas deposit to be deposited, dealt with or applied in any particular manner or in any particular country.

1. The Council may take any steps and give any undertakings required by or under the laws or regulations of any country applicable to members of the Society in order to secure authorisation for members of the Society to transact insurance business in or emanating from that country.

2. The Council may from time to time prescribe conditions and requirements or issue directions to be complied with by all or some of the members of the Society or underwriting agents in relation to overseas insurance business. Such conditions and requirements or directions may include the requirement for all or some members of the Society (whether or not underwriting members) or for any underwriting agent to -

(a) pay directly or reimburse the Society in respect of any fines, costs or awards levied by any court, regulator or any other relevant authority of any country in which such members or underwriting agents transact overseas insurance business;

(b) deal with any matter arising in any particular country in a particular way, including cooperating with any Lloyd’s general representative or attorney in fact in such country or any Lloyd’s agent appointed to accept service of suit under an overseas jurisdiction clause in an insurance policy.

1. The Council may from time to time prescribe conditions and requirements requiring members of the Society who underwrite or who propose to underwrite or who have underwritten overseas insurance business to pay to the Society or, as the Council may determine, any deposit company, fees and/or levies for the purpose of financing, or reimbursing any expenses incurred at any time in connection with the underwriting of overseas insurance business.

2. The amount of any fee or levy made under paragraph 6, the manner of calculating such fee and/or levy and the date or dates on which any such levy shall be payable shall be such as the Council may from time to time prescribe in any conditions and requirements made under paragraph [1.] above.

1. Without prejudice to the generality of the Council’s powers under [Consolidated Requirements Part 2 > General Operational Matters > Overseas Underwriting] to prescribe conditions and requirements applicable to any member of the Society, the provision of funds or the procurement of the provision of funds, compliance with overseas laws and regulations and the payment of fees and levies in accordance with any conditions and requirements made under [Consolidated Requirements Part 2 > General Operational Matters > Overseas Underwriting] shall be a condition relating to permission to underwrite insurance business at Lloyd’s and the provisions of the [Membership sections within parts 1, 2 and 3 of the Consolidated Requirements] shall apply accordingly where any member of the Society fails to comply with such condition.

Lloyd's Japan

1. Lloyd’s Japan Inc may charge, pursuant to any agency agreement or other agreement or arrangement between it and any member of the Society (whether or not an underwriting member) or any managing agent of any such member, any commission, profit commission, fee or other remuneration or any advance payment or reimbursement of expenses incurred by it in the performance of its functions in connection with the underwriting business of that member. 

2. Any levy under this paragraph [2.] should be made by service on the member or on the member’s managing agent of a notice specifying the amount payable and the date or dates on which it is payable.

3. A member of the Society (whether or not an underwriting member) shall not in the course of his underwriting business at Lloyd’s accept Japanese local insurance business directly from any proposer or non-Lloyd’s broker in Japan otherwise than through Lloyd’s Japan Inc and unless he has appointed Lloyd’s Japan Inc as General Agent (as defined in article 219 of the Insurance Business Law (Law No. 105 of 1995) of Japan).

Canada

[Requirement to use Scheme Canada]

1. It shall be a condition and requirement of permission to underwrite Canadian Business that where any member of the Society (whether or not an underwriting member) uses or purports to use the system known as Scheme Canada that member shall comply with the provisions of the Scheme Canada Rules (as amended from time to time) contained in the schedule 1 to these conditions and requirements and for these purposes – 

“Act” means the Insurance Companies Act S.C. 1991 C.47 including any amendments or regulations made pursuant thereto. 

“Canadian Business” means such part of a member's underwriting business at Lloyd's (being general business) as constitutes either:

(a) contracts or policies of insurance (other than contracts or policies of marine insurance) to the extent to which such contracts or policies insure risks which are or will be ordinarily in Canada including all policies in Canada as defined in the Act; 

(b) contracts or policies of reinsurance underwritten by the member of any general business (other than contracts or policies of marine insurance) underwritten by a company (not being a member of Lloyd's) incorporated in Canada and licensed to underwrite insurance business under the laws of Canada or any province or territory thereof; 

(c) contracts or policies of reinsurance underwritten by the member of general business (other than contracts or policies of marine insurance) underwritten in Canada by a company (not being a member of Lloyd's) incorporated elsewhere than in Canada and licensed to underwrite insurance business under the laws of Canada or any province or territory thereof; 

(d) any contract of reinsurance to close of any year of account underwritten by the member to the extent only to which the member is liable under such contract in respect of. 

 (i) contracts or policies of insurance (other than contracts or policies of marine insurance) underwritten by other members to the extent to which such contracts or policies insure risks which are or will be ordinarily in Canada including all policies in Canada as defined in the Act; or 

 (ii) contracts or policies of reinsurance underwritten by other members of general business (other than marine insurance) underwritten by a company (not being a member of Lloyd's) incorporated in Canada and licensed to underwrite insurance business under the laws of Canada or any province or territory thereof ; 

 (iii) contracts or policies of reinsurance underwritten by other members of general business (other than contracts or policies of marine insurance) underwritten in Canada by a company (not being a member of Lloyd's) incorporated elsewhere than in Canada and licensed to underwrite insurance business under the laws of Canada or any province or territory thereof.

General

No set off

1. Any sum required by the Council by conditions and requirements made under this byelaw to be provided by or at the procurement of a member of the Society shall be paid free and clear from any set-off, counterclaim or deduction on any account whatsoever, and shall, if the Council so specifies, if not paid on the due date for payment, bear interest from the due date until the date payment (as well after as before judgment) at the rate prescribed from time to time by the Council and the member’s obligation to provide or procure the provision of such sum, together with any interest shall be enforceable by the Society in any court of competent jurisdiction.