In the property and casualty market, Lloyd's is best described as:
Explanation
Lloyd's is not an insurance company but an organized marketplace in which syndicates, backed by their members, underwrite risks brought to them by brokers; the liability sits with the members of each syndicate rather than with Lloyd's itself. It is often used for unusual or hard-to-place exposures. A rating bureau does something different, gathering loss data and filing loss costs that insurers may use.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A contractor must show proof of property coverage today, although the policy itself will not be issued for three weeks. A binder issued by the producer:
- The structural difference between a stock insurer and a mutual insurer is that the mutual insurer:
- A group of subscribers agree to exchange insurance among themselves, and the arrangement is managed for them by an attorney-in-fact. This insurer is:
- A commercial account with a difficult exposure is placed through surplus lines. Compared with an admitted insurer, the surplus lines insurer:
- A residual market mechanism such as an assigned-risk plan exists in order to:
- A primary insurer signs an agreement under which the reinsurer must take an agreed share of every commercial property risk in a defined class. This is:
Last reviewed: · editorial process