{"id":18580,"date":"2017-06-29T12:06:20","date_gmt":"2017-06-29T09:06:20","guid":{"rendered":"http:\/\/colemont.lt\/?page_id=18580"},"modified":"2025-10-01T16:25:03","modified_gmt":"2025-10-01T13:25:03","slug":"about-lloyds","status":"publish","type":"page","link":"https:\/\/colemont.lt\/en\/about-lloyds\/","title":{"rendered":"About Lloyd’s"},"content":{"rendered":"

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\nLloyd\u2019s is proposing to transfer certain EEA insurance policies to Lloyd\u2019s Brussels. The proposed transfer will not change terms and conditions of any policy, except that Lloyd\u2019s Brussels will become the insurer and Data Controller in respect of the transferred policies. Further information about the proposal (including whether it could affect your pre-transfer position), which policies are transferring, your rights and what you need to do can be found at\u00a0lloyds.com\/brexittransfer<\/a><\/span><\/span>
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Lloyd’s financial strength has been confirmed by all global rating agencies.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text css=”.vc_custom_1498740100128{padding-bottom: 30px !important;padding-left: 28px !important;}”]<\/p>\n

What is a Coverholder?<\/h3>\n
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[\/vc_column_text][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1498740110564{padding-bottom: 30px !important;}”]\u201cCoverholder\u201d means a company or partnership authorised by a Lloyd\u2018s to enter into a contract or contracts of insurance to be in accordance with the terms of a Binding Authority.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text css=”.vc_custom_1498738861574{padding-bottom: 30px !important;padding-left: 28px !important;}”]<\/p>\n

What is a Binding Authority?<\/h3>\n
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[\/vc_column_text][vc_column_text css=”.vc_custom_1498803760872{padding-bottom: 30px !important;}”]A Binding Authority agreement gives a Coverholder the authority to issue insurance documents on behalf of Lloyd\u2019s syndicates. The Binding Authority agreement will also set out the Coverholder\u2019s other responsibilities, such as handling insurance monies or agreeing claims.<\/p>\n

The contract setting out the extent and terms of the Coverholder’s delegated authority is known as a Binding Authority.[\/vc_column_text][vc_column_text css=”.vc_custom_1498738952752{padding-bottom: 30px !important;padding-left: 28px !important;}”]<\/p>\n

The role of the Coverholder<\/h3>\n
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[\/vc_column_text][vc_column_text css=”.vc_custom_1498740144237{padding-bottom: 30px !important;}”]When a Lloyd\u2019s Managing Agent delegates its authority to an approved Coverholder under a Binding Authority, the approved Coverholder may enter into contracts of insurance and issue insurance documents as evidence that contracts of insurance have been accepted.<\/p>\n

An approved Coverholder will normally also be allowed to collect premiums, and may be allowed to\u00a0handle claims or perform other functions. The scope of its authority will be set out in the contract called the\u00a0Binding Authority agreement.<\/p>\n

To become a Coverholder at Lloyd’s the entity must be sponsored by a Managing Agent, and approved by Lloyd’s. Therefore the entity must meet certain standards to become an Approved Coverholder.[\/vc_column_text][vc_column_text css=”.vc_custom_1498739037881{padding-bottom: 30px !important;padding-left: 28px !important;}”]<\/p>\n

Benefits of Coverholder arrangements<\/h3>\n
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[\/vc_column_text][vc_column_text css=”.vc_custom_1581668827609{padding-bottom: 30px !important;}”]The Coverholder model is a proven and successful way of placing business with Lloyd\u2019s, providing benefits to each of the parties involved:<\/p>\n