It is appropriate here to note that Lloyd’s underwriters
do not, and cannot, work in partnership. It is well-known
that they form themselves into syndicates as a matter of convenience,
but a Lloyd’s syndicate, although it has some of the
marks of a partnership, is not recognised by law as such.
There are two main features which distinguish a Lloyd’s
syndicate from a partnership. The first is that the day-to-day
affairs of the syndicate are usually in the hands of an underwriting
agent, the members of the syndicate, or ‘names’,
being concerned almost solely with the provision of financial
backing. The second is that, although the liability of each
member of a syndicate is unlimited so far as his own share
is concerned, no member has any liability for the debts of
any other member of the syndicate.
It follows that a Lloyd’s syndicate as such can neither
sue nor be sued, and in theory a person with a right of action
against a syndicate must sue each member of the syndicate
individually. However, in practice, and this applies not only
to Lloyd’s syndicates but to all unincorporated associations,
the Rules of the Supreme Court provide that a person may,
on obtaining a ‘representation order’, sue a representative
or representatives of the syndicate, and the decision of the
court will be binding on all of them.
See also:
Commercial
Insurance underwriters
Insurance Brokers
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