|Underwriter at Lloyd’s|
A member of the Corporation of Lloyd‘s concerned mainly with marine insurance, but also with car insurance, etc. Members have unlimited liability and come under the heading of tariff offices. The name originates from the fact that when a contract of insurance for a marine adventure is required, various persons agree to take liability for a certain proportion of the total insurance required. They will write their name under the details of the contract in question on what is known as a slip. As an example: A wishes to insure two ships for £6,000,000, and applies to Lloyd’s, where B signs for £200,000, C for £50,000, etc. Losses would be apportioned accordingly. Although theoretically sole traders, the underwriters tend to work in syndicates.
|Reference: The Penguin Business Dictionary, 3rd edt.|