STOP LOSS TRAP AND DISPARITY OF RISK AT LLOYD'S

EDM number 803 in 1991-92, proposed by Peter Hain on 04/03/1992.

That this House notes that Lloyd's syndicate Gooda Walker 387 wrote only Lloyd's Names' personal 'stop loss' policies through the Lloyd's broker Kingsley Carritt, and that in 1988 and 1989 Lime Street Underwriting and Kingsley Underwriting contributed 70 per cent. of Names' premium capacity in that Syndicate which has reported a loss of ú72,000 for each ú10,000 premium line of its Names for 1989; and urges an inquiry into (a) whether Lime Street Names were therefore taking in their own washing and paying out losses for their own 'stop loss' policies in the Feltrim and Gooda Walker 'dustbin' syndicates into which they had been dumped by Robin Kingsley, a Director of Lime Street Underwriting agencies and (b) the disparity in premium patterns of inside and outside Names, hundreds of whom were dumped into 'dustbin' syndicates, including 540 Fagan, 298 Gooda Walker and 290 Gooda Walker suffering individual losses of as much as ú1 million, whilst Robin Kingsley reduced his premium in these 'dustbin' syndicates from ú140, 000 in 1988 to ú110,000 in 1989 and ú100,000 in 1990 and a fellow director Ms Camilla Kingsley had a premium of ú100,000 in just one profitable syndicate Janson Green 386 in 1989, at a time when external Names found it impossible to reduce their exposure or escape from 'dustbin' syndicates.

This motion has been signed by a total of 12 MPs.