LLD 24.6 Internal-contagion risk

PRU 7.6 applies to managing agents and to the Society in accordance with:

1. (1)

   for managing agents, LLD 16.3.3 R; and

2. (2)

   for the Society, LLD 16.3.1 R.

The Society and managing agents must take all reasonable steps to ensure that:

1. (1)

   a corporate member does not carry on any commercial business other than insurance business and activities arising directly from that business; and

2. (2)

   individual members do not, in their capacity as underwriting members, carry on any commercial business other than insurance business and activities arising directly from that business.

A managing agent must not permit both general insurance business and long-term insurance business to be carried on together through any syndicate managed by it.