Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm; and
2. (2) in accordance with General Application 3, the Society.
3. (3) in accordance with General Application 3, managing agents, for the purposes of 7.

1.2

In this part, the following definitions shall apply:

assessable mutual

means a mutual whose articles of association, rules or bye-laws provide for the calling of additional contributions from members.

Lloyd’s templates

means the:

1. (1) annual solvency return;
2. (2) quarterly solvency return;
3. (3) annual asset data; and
4. (4) quarterly asset data

reporting templates that the Society has made available to managing agents to enable the Society to collect information from syndicates in order to complete the Society’s reporting under this Part.

material pooling agreement

means an arrangement in which:

1. (1) insurance or reinsurance undertakings only are members;
2. (2) the members have assumed joint liability between themselves for a portfolio of insurance or reinsurance obligations in defined proportions (which are adjustable should one of the members default to ensure that any claim is fully met);
3. (3) the members have the capacity to accept pooled insurance risks with a gross exposure to any one loss exceeding USD 1 Billion.

mixed commercial package

means contracts of insurance (other than treaty reinsurance contracts) against more than one of:

1. (1) loss or damage to property;
2. (2) risks to the person insured incurring liabilities to third parties;
3. (3) risks of loss to the persons insured arising from the failure of debtors of theirs to pay their debts when due;
4. (4) risks of loss to the persons insured attributable to interruptions of business carried on by them;
5. (5) risks of loss to the persons insured attributable to their incurring unforeseen expenses; or
6. (6) any other risk of loss to a commercial operation;

where the risks and losses covered in the contract are rated on a single package basis and no separately identifiable premium is charged or recorded for internal management purposes for any one group of risks or losses specified in the contract.

professional indemnity

means contracts of insurance (other than treaty reinsurance contracts), including directors’ and officers’ liability and error and omissions liability, against the risks of the persons insured incurring liabilities to third parties arising from wrongful acts (such as breach of duty, breach of trust, negligence, error or omissions) by professionals, named individuals or businesses occurring in the course of the insured’s professional activities.

public and products liability

means contracts of insurance (other than treaty reinsurance contracts) against the risks of persons insured incurring liabilities to third parties for damage to property, injury, illness or death, arising in the course of the insured’s business.