Lloyds Corporation

Lloyds Corporation

Lloyd's, a corporation in the City of London, engaged in marine and other insurance. The insurance is effected by the underwriters who are members of Lloyd's and who are personally liable for claims made against policies they have underwritten. A company wishing to insure a ship secures the services of a broker who negotiates the amount of insurance required from the underwriters at the lowest possible cost. Several underwriters will usually be associated with the insurance of one vessel, thus spreading the risk. Once the required amount of insurance has been underwritten, a policy will be issued by Lloyd's bearing the stamps of the various underwriters.

Lloyd's dates back to 1689 when a coffee-house in Tower Street owned by Edward Lloyd was the meeting place of business men interested in shipping and in 'spreading the risk' of marine ventures. In 1871 an Act of Incorporation made Lloyd's a chartered body governed by the 'committee'.

Although famous for its marine insurance, Lloyd's premiums on nit and accident insurance in the early 2011's were half as much as those from marine insurance. Aviation insurance was also important, contributing about 7 per cent of total premium income. The annual premium income exceeded £300 million.

Loan, a transfer of purchasing power between economic units to give financial assistance to the borrower in return for interest (and sometimes other advantages) for the lender. Economic units in this sense may be countries or government s, industrial and commercial enterprises, and private individuals. The borrower usually deposits with the lender either security for the loan or a pledge or guarantee of repayment.

In loans between government s the advantage to the lender may be direct, as in financial assistance to an ally in war, or indirect, as when the loan is aimed at preventing the financial and economic collapse of a state which might undermine the stability of neighbouring states. Intergovernment al loans have taken many forms, ranging from direct loans of money by one country to another to Government loans floated in a foreign market with the guarantee of the foreign Government. Loans between government s have grown in importance in the present century; they played a prominent part in financing the allied efforts in both world wars, and since the Second World War have contributed significantly to the progress of under-developed countries.

Business loans are frequently granted by banks and other financial intermediaries to industrial and commercial firms as short-term finance for stockholding and to alleviate temporary shortages of liquid assets. In recent years banks and other financial institutions have provided loans for the expansion of companies; and the financing of take-overs has been partly based on loans.

Personal loans are usually made for consumption rather than production. Instalment purchases really involve loans with the article as security, from hire purchase of a car to the mortgage on a house. Frequently personal loans are granted to supply necessities in an emergency which makes extraordinary and unexpected demands on resources. A wide range of agencies provide personal loans, ranging from banking institutions at one extreme to pawnshops at the other.

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