Read the text and write whether the statements after the text agree with the information given in the text. Write

True if the statement is true according to the passage

False if the statement is false according to the passage

Not given if the information is not given in the passage

Wealthy people who become members of Lloyd's expose their wealth to huge risks because there are no limits to the liability of members if losses occur Members can lose all their money However, normally premium income is in excess of the money paid out to meet claims and the profits are shared by the members. There are about 24,000 underwriting members of Lloyd's, and they are grouped into about 400 syndicates of various sizes. Most of these members, or underwriters, do not actually work at Lloyd's. Each syndicate has an underwriting agent, who does work there and accepts risks on behalf of the other members of his syndicate, or 'names' as they are called. To become a 'name', it is necessary to show that you have at least ₤100,000 of readily available assets, half of which must be deposited with Lloyd's. A member with ₤100,000 would be allowed to accept premiums of up to ₤200,000. This means that for each syndicate there is a maximum amount of premiums that it can accept. For this reason, the insurance risk of, say, a very expensive oil tanker, is shared by several syndicates, each one taking a percentage of the risk. In the late seventies and early eighties a few underwriting agents stole large amounts of money from members of their syndicates. They were expelled from Lloyd's and changes were made in the regulations and working practices.

Shipowners and others who are seeking insurance cannot approach underwriters directly, but must go through another kind of Lloyd's member - a Lloyd's broker - who, for a commission, will arrange insurance with the underwriters. The broker has a slip of paper, describing the risk, which the underwriter signs, indicating the percentage of risk he or she is prepared to accept. A broker may have to approach many underwriters before the risk is completely covered, and some underwriters may refuse the risk entirely, but a broker, with his or her expert knowledge of the market will know the most suitable ones to approach. A Lloyd's broker may also place business with insurance companies, which are not part of Lloyd's.

1. Lloyd’s is a limited liability company whose members are not afraid to expose their wealth to huge risks.
2. .All the members of about 400 syndicates work at Lloyd’s.
3. “Names accept premiums of up to ₤200.000.
4. Lloyd’s brokers can insure risks with Lloyd’s syndicates but not with other insurers.
5. Lloyd’s agents provide information about shipping movements and report on damaged vessels.

Дата добавления: 2015-10-21