OVERSEAS UNDERWRITING BYELAW_________________________________
PurposeThe purpose of this Byelaw is to amend and consolidate the existing byelaws relating to overseas
underwriting into a single byelaw.
The byelaw revokes
Membership (Overseas Deposits) Byelaw (No. 2 of 1992)
Lloyd’s Japan Inc Byelaw (No. 2 of 1997)
Lloyd’s Asia Byelaw (No. 17 of 1999)
Words and terms shown in italics have the meaning set out in the Definitions Byelaw.
This Byelaw was made by the Council on 4 February 2004 in exercise of its powers under sections
6(2) and 8(3) of, and paragraphs (1), (4), (20), (41), and (42) of schedule 2 to, Lloyd’s Act 1982 andmay be referred to as the Overseas Underwriting Byelaw (No. 2 of 2004).
The headings and these notes are for guidance only and do not form part of the Overseas
Underwriting Byelaw (No. 2 of 2004).

1

Contents______________________________________Part A Overseas Deposits
Provision of overseas deposits
Part B Compliance
Compliance with overseas laws and regulations
Part C Payment of Fees and Levies
Payment of fees and levies
Part D Underwriting
Conditions of underwriting
Part E General
No set offCommencement
The Franchise Board
Revocation and transitional provisions

2Part A - Overseas deposits

Provision of overseas deposits
1.

The Franchise Board may from time to time prescribe conditions and requirements
regarding the provision, or the procurement of the provision, by members of theSociety of funds in respect of and incidental to the establishment and maintenanceof overseas deposits.

2.

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

(b)
(c)

(d)

(e)

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 inaccordance with such conditions and requirements;
may make different provision for different cases or different classes of cases;
may include requirements that members of the Society provide, or procure theprovision 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 andwhether out of members’ premiums trust funds or otherwise;
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;
may include requirements –
(i)
(ii)

(f)

(g)

to complete applications, notices and other documents in such form as
may be prescribed by the Franchise Board;
to execute and deliver or otherwise become a party to any deed, trustdeed, contract, assignment, undertaking, mandate, authority, power ofattorney, or other document or instrument as may be prescribed by theFranchise Board;

may specify circumstances in which members of the Society are to be exempt
from any such condition or requirement or may be excused from compliancewith any such condition or requirement to such an extent as the Franchise
Board may think fit;
may include requirements that –3

(i)
(ii)

members of the Society provide funds in different currencies;
provide for the determination of the amount to be provided inaccordance 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 ordeposit 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 andgenerally upon any terms whatsoever as to repayment; and(h)3.

may contain incidental, supplementary and transitional provisions.

The countries in which overseas deposits are to be made and the amounts of suchoverseas 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 Franchise Board,
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 this Byelaw or in any condition or requirement made under this
Byelaw 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 suchoverseas deposit or any part of such overseas deposit to be deposited, dealt with orapplied in any particular manner or in any particular country.

4Part B - Compliance

Compliance with overseas laws and regulations
4.

The Franchise Board may take any steps and give any undertakings required by orunder the laws or regulations of any country applicable to members of the Society inorder to secure authorisation for members of the Society to transact insurance
business in or emanating from that country.

5.

The Franchise Board 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 conditionsand requirements or directions may include the requirement for all or somemembers of the Society (whether or not underwriting members) or for any
underwriting agent to (a)(b)

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 inwhich such members or underwriting agents transact overseas insurance
business;deal with any matter arising in any particular country in a particular way,
including cooperating with any Lloyd’s general representative or attorney infact in such country or any Lloyd’s agent appointed to accept service of suitunder an overseas jurisdiction clause in an insurance policy.

5Part C – Payment of Fees and Levies

Payment of fees and levies
6.

The Franchise Board 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 theFranchise Board may determine, any deposit company, fees and/or levies for thepurpose of financing, or reimbursing any expenses incurred at any time inconnection with the underwriting of overseas insurance business.

7.

The amount of any fee or levy made under paragraph 6, the manner of calculatingsuch fee and/or levy and the date or dates on which any such levy shall be payable
shall be such as the Franchise Board may from time to time prescribe in any
conditions and requirements made under paragraph 6 above.

6Part D – Underwriting

Conditions of underwriting
8.

Without prejudice to the generality of the Franchise Board’s powers under thisbyelaw to prescribe conditions and requirements applicable to any member of theSociety, 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 this Byelaw shallbe a condition relating to permission to underwrite insurance business at Lloyd’s
and the provisions of the Membership Byelaw shall apply accordingly where any
member of the Society fails to comply with such condition.

7Part E – General

No set off
9.

Any sum required by the Franchise Board by conditions and requirements madeunder this byelaw to be provided by or at the procurement of a member of theSociety shall be paid free and clear from any set-off, counterclaim or deduction on
any account whatsoever, and shall, if the Franchise Board so specifies, if not paidon 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 theFranchise Board and the member’s obligation to provide or procure the provisionof such sum, together with any interest shall be enforceable by the Society in any
court of competent jurisdiction.

Commencement
10. This byelaw shall come into force on 1 March 2004.

The Franchise Board
11. All references in this byelaw to the Franchise Board shall be deemed also to bereferences to the Council. The Franchise Board may exercise all of the powers,
discretions and functions set out in this byelaw as the agent of the Council.

Revocation and transitional provision
12. The following byelaws are revoked with effect from 1 March 2004:
(a)
(b)
(c)

Membership (Overseas Deposits) Byelaw (No. 2 of 1992);
Lloyd’s Japan Inc Byelaw (No. 2 of 1997); andLloyd’s Asia Byelaw (No. 17 of 1999);

save that nothing in this byelaw shall affect the validity of any conditions andrequirements made pursuant to the byelaws above or any other byelaw in respect of8

overseas insurance business and such conditions and requirements shall be deemed
to have been made pursuant to this Byelaw with effect from 1 March 2004.

9