The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-09-29


! society, each of whom carries on hi,
business for his own account and risk
either himself or through an author.
lied underwriting agent the general
practice being for several members. in
association but not in partnership. to
carry on their business through q sin.
gle agent who UNDERWRITERS and acts
for the whole group.
Managed by Elected Committee.
The corporation affairs of the soci-
ETY., as distinguished from the individ-
ual underwriting businesses of the
members, are managed by the commit
tee Of Lloyd's, which is elected from
and by the general body of members.
New members are chosen by the COM
mittee, which inquiries into the status
and financial responsibility Of every
person nominated as a candidate for
election. Every member is legally liza
bic to the full extent of his means
In other words, his liability is unlim-
tied. The following statement de-
scribes the financial responsibility of
members, as given out by one Of the
officials of Lloyds:
"All candidates for admission to un-
derwriting membership have to depos-
1t with the committee such security
for their underwriting liabilities as
the committee, in it's discretion, may
think fit to require. The security,
which is always in the custody of the
committee, consists Of approved first
class investments. These investments
amount, at the present time, to up
ward of f4,OOO,O0O approximately
$2O,OO0000) and are supplemented
by guarantees in accordance with the
requirements Of the government
board of trade. The investments are
held by trustees, of whom the society
itself is one, and are subject to trust
deeds which make them exclusively
available for the discharge of under
writing liabilities - contracted at
Lloyd's.
In addition to a members own
means and to the security which he
has furnished, holders of Lloyd's poll
cies are further protected by the fact
that every member of Lloyd's must
furnish annually to the committee a
certificate by public accountant ap-
proved by the committee Gin form ap-
proved by the board of trade) that his
underwriting assets and security are
sufficient to meet his liabilities, and
that his premiums are placed in trust,
IN accordance with the provisions of a
trust deed approved By the board of
trade. Since 1910 these obligations
have been imposed by the assurance
companies act 1909, upon all members
who transact any fire or accident in
surance business, but they were in
force at Lloy6's before the passing of
that act. The form of audit certif-
cate is set out in the rules made by
the board of trade under the assur-
ance companies act, 1909.
Until July 1, 1910, when the as
surance companies act came into
force, the legislature had imposed no
statutory restrictions or conditions to
the carrying on of fire or accident in
surance business. Life assurance and
employers liability insurance business
had been subject to such restrictions
and conditions, the former since 1870
and the latter since 1907; the require
ments being briefly the furnishing of
security in the form of an invested de.
post, the publications Of accounts and
the like.
What Assurance Companies Act Did.
THE assurance companies act of 1909
repealed the previous acts and consoli-
dated all the regulations in one act.
1t provided that underwriters engaged
In fire, accident and other non-marine
business should furnish the following
securities in respect to each separate
years business:
II. Unlimited personal liability of
the underwater.
y. A sum of money secured by a
trust deed and certified by indepen-
dent auditors at the end of each year,
sufficient, in the light Of experience,
to satisfy the liabilities undertaken by
the underwater in that year.
%. A separate guaranty or cash de-
post for an amount equal to the az.
gregate amount Of the premiums re-
ceived in that year on fire and other
non-marine business to be available
for the payment of claims thereon
should the above trust funds and all
other assets Of the underwriters be-
come exhausted. This guaranty is not
a running guaranty for each year. The
guarantors are Lloyd's underwriters,
who are jointly and severally liable up
to the full amount of their subscrip-
tons, the amount of each guarantors
subscriptions being limited by regula-
tons of the committee"