LLOYD'S, the centre of the marine insurance world, is the name of a society incorporated by special Act of Parliament in 1871, with the object of carrying on, by its members, the business of marine insurance. Incident ally to this object it undertakes the protection of the interests of its members in respect of shipping, and cargoes and freight ; and the collection, publication, and diffusion of intelligence and information m ith respect to shipping generally. The name is derived from an old London coffee-house, called Lloyd's Coffee-House, whereat, in the seventeenth century, a society of underwriters originally had its headquarters. That society was practically the same as the one now in existence, and it progressed to its present statutory incorporation by way of a deed of association in 1811. Its place of business was finally removed in 1773 to the upper part of the Royal Exchange, in Cornhill, the rooms being private to its members. The affairs of Lloyd's are managed by a committee, N% ith an annually elected chairman, and the members of the society are divided into underwriting, and subscribing. Applicants for admission to membership must be recommended by six members, and they are elected after ballot in committee. The under writing members arc those who " underwrite " the policies of insurance, and are consequently the marine insurers. They undertake, however, other insurance business—for example, life, fire, ana accident ; but in respect to such business the provisions of the Assurance Companies Act, 1909, must be complied i%ith. Members of the underwriting class carrying on marine insurance business not only pay a h'gher subscription than the other members of the society, but are also required to deposit with the committee securities of the highest to the value of at least ,P5000. Such a security is available in case the underwriter who has deposited it should fail to meet his liabilities. The committee have also a discretion to accept a guarantee policy of 135000 in lieu of the deposit. The other members of the society are either brokers or merchants. There is no one, in fact, engaged to any extent in the shipping business in London who is not either a member or subscriber, and thus the collective body represents the greater part of the mercantile wealth of this country. Apart from under
writing, the society has very important public functions to fulfil. It may be called upon to contribute towards the membership of a committee to assist the Board of Trade in making rules for LIFE-SAVING APPLIANCES (g.v.). It has its authorised agents in all the principal ports in the world, who forward regular accounts of the departure from, and arrivals at, their respective ports, as well as of losses and other casualties, and any other infor mation likely to be of importance to the body of subscribers. This intelli gence is supplied to the general news agencies, and is also, after being entered and indexed in Lloyd's List for the private use of members, again published for public use in the Shipping and Mercantile Gazette. In order that Lloyd's shall receive all necessary intelligence, the Merchant Shipping Act particu larly provides that information shall be promptly forwarded there of certain marine losses and wrecks. The principal shipping arrivals and losses are also conspicuously posted in certain books in the chief room, and the state ments contained therein are sufficient notice to the underwriters and other frequenters of Lloyd's of the matters referred to. In the captain's room, which is separated from the principal rooms of the society, the masters of vessels, shipbrokers, and others interested in shipping, mcet, in order to obtain and receive information, and negotiate the terms of freight and sale or hire of vessels, &c. The Assurance Companies Act, 1909, does not apply to a member of Lloyd's, or of any- other association of underw liters approvea by the Board of Trade, who carry on assurance business of any class, provided that he complies with the requirements set forth in the Eighth Schedule to that Act, and applicable to business of that class. The substance of this Schedule is set out in the article on LLOYD'S, in continuation of this article, in the Appendix to this volume.