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LLD 5.1 Application and purpose

Application

LLD 5.1.1 R

This chapter applies to the Society.

LLD 5.1.2 R

A contravention of the rules in this chapter does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.

Purpose

LLD 5.1.3 G

The rules and guidance in this chapter are intended to promote confidence in the market at Lloyd's and to protect certain consumers of services provided by the Society in carrying on or in connection with or for the purposes of its regulated activities by:

  1. (1)

    protecting policyholders against the risk that former underwriting members may not be able to meet any liabilities to carry out contracts of insurance that they underwrote at Lloyd's; and

  2. (2)

    enabling the FSA to impose requirements under section 320(3) of the Act (Former underwriting members) if it considers this appropriate to protect policyholders.

LLD 5.2 Requirements relating to former underwriting members

LLD 5.2.1 R

The Society must draw sections 320 to 322 of the Act (Former underwriting members, Requirements imposed under section 320, Rules applicable to former underwriting members) to the attention of any person ceasing to be an underwriting member on or after commencement.

LLD 5.2.2 R

The Society must require any person, other than a body corporate, ceasing to be an underwriting member on or after commencement to:

  1. (1)

    notify the Society of any change in his address within one month of the change; and

  2. (2)

    in the case of a natural person, to make arrangements for the Society to be notified in the event of his death.

LLD 5.2.3 G

The Society should make and retain records of the notifications made to it under the requirements referred to in LLD 5.2.2 R. It should give the FSA access to these records if the FSA requests this.