Following Year Underwriting

1. A managing agent may not make a relevant contract on behalf of a provisional insurer unless: 

 (a) the provisional insurer is a member of a provisional syndicate; and 

 (b) his name and the amount of his overall premium limit allocated to the provisional syndicate appear on a provisional syndicate stamp prepared for the provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 3(1)}

2. In [1.(b) above], the reference to ‘‘overall premium limit’’ means the overall premium limit applicable to the year of account to which are to be allocated the liabilities under relevant contracts made on behalf of the provisional insurer.

^{Following Year Underwriting Regulation, paragraph 3(2)}

3. A provisional insurer who is for the time being subject to a direction of administrative suspension or otherwise suspended from underwriting at Lloyd’s may not be a member of a provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 3(3)}

4. In the case of a new syndicate, a managing agent shall make relevant contracts only on behalf of a provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 3(4)}

5. In the case of a syndicate which is not a new syndicate, a managing agent shall, during the qualifying period, make relevant contracts only on behalf of a provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 3(5)}

1. A managing agent may not make relevant contracts on behalf of a provisional syndicate unless the managing agent has prepared a provisional syndicate stamp for that provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 4(1)}

2. A provisional syndicate stamp shall: 

(a) bear the date of its preparation; 

(b) be signed on behalf of the managing agent of the provisional syndicate; and 

(c) be available for inspection at all reasonable times by: 

 (i) the syndicate auditor appointed to report on the year of account of the syndicate to which the liabilities of the provisional syndicate have been, or are intended to be, transferred and the syndicate auditor of such a syndicate appointed in the year preceding that year of account; 

 (ii) the assured (or his agent or representative) under a contract of insurance made by the members of the provisional syndicate; 

 (iii) an employee of the Society authorised for the purpose of this sub-paragraph by the Director, Regulatory Services of the Society or by such other person as he may from time to time appoint to exercise in his absence the power conferred on him by this sub-paragraph; and 

 (iv) such other person or persons as the Council may from time to time specify in writing.

^{Following Year Underwriting Regulation, paragraph 4(2)}

3. A managing agent shall, not later than 1st November in every year, in respect of each syndicate on behalf of which insurance business is to be underwritten by the managing agent in the following year; 

(a) form a provisional syndicate; and 

(b) prepare a provisional syndicate stamp for the provisional syndicate.

^{Following Year Underwriting Regulation, paragraph 4(3)}

4. If a provisional insurer is already a member of a provisional syndicate when he becomes subject to a direction of administrative suspension or otherwise suspended from underwriting at Lloyd’s, the managing agent shall, as soon as practicable after receiving notice of such direction or suspension, prepare a new provisional syndicate stamp which omits that provisional insurer.

^{Following Year Underwriting Regulation, paragraph 4(4)}

5. The managing agent shall make such contracts of novation of the type referred to in clauses 8.3 and 8.3A of the standard managing agent’s agreement as may be necessary fully to carry those clauses into effect.

^{Following Year Underwriting Regulation, paragraph 5}

In this regulation, unless the context otherwise requires: 

‘‘direction of administrative suspension’’ has the meaning given to it in the Administrative Suspension Byelaw (No. 7 of 1987); 

‘‘managing agent’’ means an underwriting agent which is listed as a managing agent on the register of underwriting agents maintained under the Underwriting Agents Byelaw (No. 4 of 1984); 

‘‘new syndicate’’ means a syndicate where the year of account to which liabilities under relevant contracts are to be allocated is the first year of account of the syndicate; 

‘‘overall premium limit’’ has the meaning given to it in the Membership Byelaw (No. 17 of 1993); 

‘‘provisional insurer’’ has the meaning given to it in clause 8.2 of the standard managing agent’s agreement; 

‘‘provisional syndicate’’ means a syndicate that comprises only provisional insurers; 

‘‘provisional syndicate stamp’’ means a document setting out the names of the members of the provisional syndicate and the amount of each such member’s overall premium limit allocated to the provisional syndicate; 

‘‘qualifying period’’ means  

(a) in relation to 1989, from 1 November until 31 December inclusive; and 

(b) in relation to 1990 and a subsequent year, from 1 September until 31 December inclusive; 

(c) in relation to 1997 and a subsequent year, from 1 October until 31 December inclusive. 

‘‘syndicate’’ means an underwriting member or group of underwriting members of Lloyd’s underwriting insurance business at Lloyd’s through the agency of a Lloyd’s underwriting agent to which member or group a particular syndicate number is assigned by the Council; 

‘‘syndicate auditor’’ has the meaning given to it in the Syndicate Audit Arrangements Byelaw (No. 10 of 1984) and

‘‘year’’ means a calendar year, except when used to refer to a year of account.

^{Following Year Underwriting Regulation}