In 1774 Lloyd's, under the guidance of John Julius Angerstein, perhaps the most outstanding personality who has appeared in its history, took up its abode in the Royal Exchange where it remained for more than a century and a half during a tenancy broken only by the period of rebuilding after the fire of 1838. The move to the Royal Exchange was signalized by a departure from the status of a proprietary coffee house, the "Masters" as they were called be coming tenants at will to the subscribers. The outbreak of the French war in 1793 led to a period of remarkable expansion during which Lloyd's advanced in wealth and importance although the underwriters were at times subjected to losses which strained their resources; in 1794-95 one underwriter, Robert Sheddon, paid out losses of £190,000. During 1793-1815 Lloyd's became an institu tion which exerted a salutary influence on the direction of naval operations in relation to sea-borne trade. It carried an insurance of over L600,000 on bullion and specie from Vera Cruz. It is found constantly influencing the Admiralty in regard to convoys. At a time when the State made no provision for war victims, Lloyd's inaugurated many subscriptions for that purpose, culminating in the "Patriotic Fund" established in 1803, which still exists and which received a great augmentation during the World War. Gifts of plate were made to Nelson and to the captains at Trafalgar. A portion of the Nelson plate and a Trafalgar cup designed by Flax man are now in the possession of Lloyd's.
In 1811 under the influence of Joseph Marryat, M.P., father of the novelist, and himself a man of unusual ability, Lloyd's pre pared the way for incorporation by the curious expedient of in ducing the subscribers to sign a trust deed vesting the corporate funds in the "committee of treasury" and imposing by-laws on the subscribers. It was moreover at this period that the system of Lloyd's agencies was initiated, and the duties defined.
Incorporation, 1871.—After the destruction by fire of the Royal Exchange, and the return to improved premises, business was continued under the old system until 187o when the control of the society over its members was found wanting. This led to the
Act of Incorporation (Lloyd's Act 1871) which formed the con stitution of Lloyd's as it exists to-day. The society was given power to make its own by-laws, to acquire real and personal prop erty, and to do all acts in its corporate name. By the Act of In corporation the society was restricted to marine insurance but by Lloyd's Act 1911 power was given to carry on insurance of every description excepting life. Although individual initiative is still a striking characteristic of Lloyd's the powers and activities of the corporate body have increased. The measures designed to make the security of a Lloyd's policy unquestionable have been taken almost entirely since the Act of 1871. Under the Assurance Companies Act 1909 special provisions are included with which Lloyd's underwriters comply.
There is no more striking illustration of the practical conserv atism characteristic of Lloyd's, than the Lloyd's policy of marine insurance. Its germ is found in a Florentine policy of 1523. Its substance goes back to the century, when a common printed form was gradually evolved. One of the first acts of Lloyd's, as a society, was to revise this form, with a view to resisting certain at tempted innovations, and the policy "revised and confirmed" on Jan. 12, 1779, is still in use, with practically no alterations and only three additions, the "Waiver Clause" (1874), the clause ex cluding War Risks (1898) and the "Frustration Clause" In many respects the old form is inadequate to the requirements of modern commerce; but almost every phrase has been judicially interpreted and it is felt that revision would lead to much liti gation.
Its inadequacy has been rectified by the use of clauses devised to meet the special requirements of each class of insurance, which are printed separately and then affixed to the policy.
See Chas. Wright and C. Ernest Fayle, History of Lloyd's (1928), the leading authority ; and F. Martin, History of Lloyd's and Marine Insurance (C. W.)