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Simple English definitions for legal terms
American Lloyd's
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A quick definition of American Lloyd's:
American Lloyd's is a group of insurance underwriters who work together under a common name. They are not a company, but rather an association that operates through an attorney-in-fact who has the authority to make and issue insurance contracts on behalf of the underwriters. Each underwriter has a specific limit on the amount they can obligate themselves to pay on a contract. This association is also known as Lloyd's underwriters or Lloyd's association.
A more thorough explanation:
Definition: American Lloyd's is an unincorporated association of underwriters who engage in the insurance business through an attorney-in-fact. The underwriters operate under a common name and have the authority to obligate themselves within specified limits on insurance contracts that the attorney issues in the common name.
Examples: If a group of underwriters wants to insure a large commercial property, they can come together under the name American Lloyd's and appoint an attorney-in-fact to issue the insurance policy. The attorney-in-fact will have the authority to obligate each underwriter to pay a portion of the claim if the property is damaged or destroyed.
Explanation: American Lloyd's is a way for underwriters to pool their resources and share the risk of insuring large or complex risks. By operating under a common name, they can offer insurance policies that are backed by the financial strength of the entire group. The attorney-in-fact acts as the representative of the underwriters and has the authority to make decisions on their behalf. This allows the underwriters to participate in the insurance market without having to individually issue policies or manage claims.
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