The Lloyd's of London reference article from the English Wikipedia on 24-Apr-2004 (provided by Fixed Reference: snapshots of Wikipedia from wikipedia.org)

Lloyd's of London

Lloyd's of London is a British insurance firm best known today for its willingness to insure a wide variety of unusual items. Technically it is an insurance market, where multiple financial backers, traditionally known as "names", underwriters, and managers come together to pool and spread risk.

The business began in Edward Lloyd's coffeehouse around 1688 in London, England. While Lloyd was only the proprietor, his establishment was a popular place for sailors, merchants, and ship owners and Lloyd catered to them with reliable shipping news and a variety of services. The shipping industry community frequented the place to discuss insurance deals among themselves.

This arrangement carried on long after Lloyd's death in 1713 until 1774 when the participating members of the insurance arrangement formed a committee and moved to the Royal Exchange as The Society of Lloyd's. In 1871, The Lloyd's Act was passed in Parliament which gave the business a sound legal footing. By the early 1900s, the business became one of the pre-eminent insurance companies in the world. The Lloyd's Act of 1982 further redefined the corporate structure of the business.

Today, Lloyd's is best known for the unusual policies it has taken out, although their general company policy precludes life insurance. Some of the more unusual policies include:

• Silent film comedian Ben Turpin's eyes from uncrossing.
• Participating automobiles in the carpools involved in the Montgomery Bus Boycott.
• Brooke Sheilds and Tina Turner's legs

It has been increasingly known lately for its first ever failures to pay legitimate claims. In the late 1990's certain Lloyds "names" were unable, or unwilling to pay claims of risks that were underwritten on their behalf. Specifically many of these claims resulted from liability losses in the United States. The names clamed that the underwriting failed to consider the magnitude of the risks underwritten, or that the magnitude of the risk was known but not disclosed to them.

The present Lloyd's building was designed by architect Richard Rogers and was completed in 1984. It stands on the site of the old Roman forum.

External links

• official web site
• http://www.truthaboutlloyds.com/fraud/timeline.html

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