WITH SOLUTIONS GRADED A+2025/2026
✔✔What's the brief history of the Lloyd's market? - ✔✔Ed started the marine risk list
then underwriters took it Royal once working in syndicates run by managing agents.
1.2.3.4. - In London, Ed Lloyd loved coffee and helping merchants trade on marine
risks.
5.6. - His idea became the Lloyd's list with data from merchant ships worldwide and
then underwriters moved into the Royal Exchange.
7.8. - Underwriters took over for more and more risk merchants and began working for
syndicates.
9.10. - Syndicates are groups hiring underwriters and are run by managing agents.
✔✔How does the Lloyd's market generally operate? - ✔✔Insurance requests are made
to the market and are accepted by underwriters for individual members or member
groups called syndicates run by managing agents.
1.2.3. - It's a market with members who provide capital.
4.5.6.7. - Individual or business members form groups called syndicates which employ
underwriters who select risks.
8.9.10. - Underwriters with each syndicate run by a managing agent take risks from
clients, brokers, and agents to be covered by appropriate members.
11.Syndicate profits are earned by competing with other syndicates for whole risks or
re-insuring each others risks.
12.13.14.15. Managing agents hire the underwriters and only manage one or more
syndicates.
✔✔How are an insurer's claims and underwriting departments typically divided between
head and branch offices and what other departments do head offices usually have? -
✔✔Head's got underwriting (FoRCe) and Oversees claims (PAlSIED) while branches
may handle claims (TAJ wINS) and have Techs to help with Regional underwriting. The
BMAFIA is in head too.
Underwriting
Head-Formulation, Research (market trends, past experiences, statistics), Class
division,
Branches-Regional underwriting, Technical divisions
Claims
Head-Oversight, Protocol, Admin., SIU, Excessive claims, Division of labour
Branches-Training, Adjusting, Jurisdictional, Investigation, Negotiation, Settlement
Head Departments
Branch operations
Marketing, agency, production
Actuarial
Finance
Investments
Accounting
, ✔✔How do agency/brokerage agreements affect the relationship between the insurer
and the insured? - ✔✔by not SLuRring the CORD and adding CICADa!
-Conditions, Obligations, Responsibilities, Documentation
-no Standard, no product Limitations, no exclusivity Restrictions
Claims handling
Incentives
Commissions
Agency policy issuance
Direct billing
✔✔What are the basics included in agency/brokerage agreements? - ✔✔CaRP BOAT!
Classes of insurance, Remuneration, Premium collection and credit terms, Binding
authority, Other addenda, Agreement, Termination
✔✔Compare and contrast 'express' contracts and 'implied' contracts. - ✔✔Express-
written or oral, specific, clear and desirable
Implied- implied by actions and understood but disputable
Both-acceptable and legally valid
✔✔List the Advantages and Disadvantages of 3 forms of brokerage/agencies
businesses. - ✔✔Topics to address: RAGing CLaW!
Regulation, Accountability to peers, Growth potential, Capital, Liability, Workforce
✔✔What makes a successful broker? - ✔✔Those who PIC Business and Clients!
Personal-daily growth, brainstorming
Insurers-identify client needs, match needs to products, match products to client,
contracted, licensed, and reputable
Claims-handle efficiently, communicating with insurer
Business-good sense, knowing products, goal-oriented, realistic, proactive, always
ready, good on the clock
Clients-listening, exceeding, efficiently, renewing
✔✔Describe "common law." - ✔✔BoP CaPS!
Bound to past, Prior cases, Case-law, Precedent, Similiarities
✔✔Describe "Civil Code of Quebec." - ✔✔UnI PAC!
Unique to Quebec, Interpretations from past, Private law, Articles, Codified
✔✔What laws affect the business of insurance? - ✔✔COIn COP!
Contract law, Operations of insurance law, Insurance contract law, Civil law, legal
Obligations (Torts, Voluntary), Principal + agent law
✔✔What are the two main categories and fields of law? - ✔✔Procedural Law,
Substantive Law (Public & Private)