IIIIURAIICERE~ OFFICE OF INSURANCE REGULATION · 2016-03-09 · WHEREFORE, the agreement between...

FILED MAR 0 7 2016

OFFICE OF INSURANCE REGULATION

OFFICE OF IIIIURAIICERE~

~~--~~~~----

KEVIN M. MCCARTY Cm!MrssroNr·:R

IN THE MA TIER OF:

UNDERWRITERS AT LLOYD'S, LONDON _______________________________ /

AMENDMENT TO CONSENT ORDER

CASE NO.: 185223-16-CO

THIS CAUSE came on for consideration as a result of an agreement between

UNDERWRITERS AT LLOYD'S, LONDON (hereinafter referred to as "LLOYD'S") and the

OFFICE OF INSURANCE REGULATION (hereinafter referred to as the "OFFICE") regarding

the status of LLOYD'S as a Certified Reinsurer in the state of Florida. Following a complete

review of the record, and upon consideration thereof, and being otherwise fully advised in the

premises, the OFFICE hereby finds as follows:

I. The OFFICE has jurisdiction over the subject matter and of the parties herein.

2. LLOYD'S is a Certified Reinsurer in the state of Florida pursuant to Section

624.61 0(3)( e), Florida Statutes, Rule 690-144.007, Florida Administrative Code, and the

Consent Order that was executed by LLOYD'S and the OFFICE on December 31, 2015, case

number 184076-15-CO ("Consent Order 184076-15-CO," attached as Exhibit A).

3. Paragraph 15 of Consent Order 184076-15-CO limited the Certified Reinsurer of

LLOYD'S status to property catastrophe reinsurance. Upon agreement between LLOYD'S and

the OFFICE, Paragraph 15 of Consent Order 184076-15-CO is hereby revised to eliminate said

restriction.

Page I of 5

4. Accordingly, Paragraph 15 of Consent Order 184076-15-CO is hereby replaced

with the following language:

15. Pursuant to Rule 690-144.007(8)(d)(2), Florida Administrative Code, LLOYD'S shall assume only the kind or kinds of reinsurance ceded by ceding insurers for which LLOYD'S is authorized in its domiciliary jurisdiction.

5. All other terms and conditions in Consent Order 184076-15-CO shall remain in

full force and effect.

6. Each party to this action shall bear its own costs and attorneys' fees.

7. LLOYD'S expressly waives a hearing in this matter, the making of Findings of

Fact and Conclusions of Law by the OFFICE, and all further and other proceedings to which it

may be entitled by law or rules of the OFFICE. LLOYD'S hereby knowingly and voluntarily

waives all rights to challenge or to contest this Consent Order in any forum now or in the future

available to it, including the rights to any administrative proceeding, circuit or federal court

action, or any appeal.

8. LLOYD'S and the OFFICE agree that this Consent Order shall be deemed to be

executed when the OFFICE has signed a copy of this Consent Order bearing the signature of

LLOYD'S or its authorized representative notwithstanding the fact that the copy was transmitted

to the OFFICE electronically. Fwther, LLOYD'S agrees that its signature as affixed to this

Consent Order shall be under the seal of a Notary Public.

of5

WHEREFORE, the agreement between UNDERWRITERS AT LLOYD'S, LONDON

and the OFFICE OF INSURANCE REGULATION, the terms and conditions of which are set

forth above, is APPROVED.

Kevin M. McC ty, Commissione Office of Insurance Regulation

of 5

By execution hereof, UNDERWRITERS AT LLOYD'S, ~ONDON consents to entry of this Consent Order, agrees without reservation to all of the above terms and conditions, and shall be bound by all provisions herein. The undersigned represents that he or she has the authority to bind UNDERWRITERS AT LLOYD'S, LONDON to the terms and conditions of this Consent Order.

UNDERWRl]:ERS AT LLOYD 'S, LONDON

By: ¢MLJ-t~ [Corporate Seal] Print Name: )e ,::.,...J /'-'\C < 4\.. ~J~rJ

England & Wales City of london

The foregoing instrument was acknowledged before me this~ day of fncv<.J" 20 16,

by SEI\N uf(.t\.C-0 Ncc.o \I t J:.IV (name of person)

as ClllH ( ISK OHlc.Frt:. (type of authority; e.g., officer, trustee, attorney in fact)

for lLNOt !CwrCIIT.''fl5 A.T t.Lo't o'.r LoNYJQN (company name)

NOTARY PUBLIC LONDON, ENGLAND SARA HELEN DODD

(Print, Type or Stamp co;n(MYsf6~U.WW§mgiJMQI!W)Wilh Life)

Personally Known ___ or Produced Identification /

Type of Identification Produced ~~....,,-rt:o k., t-.~ GOC'M (1f Gtfl\.T ~~rT I\.IN

My Commission Expires _ ___,_W:...:.IT~H_L.:.:.r _,_,K,__ _ _______ _

IINO N o t:T"' 6~N Tf.c L"'4o PA!.If>~ rvv.,..6~ ~ S 1 If t '- ·~~ 1 (,

CHEESWRIGHTS of5

NOTARIES PUBLIC Banlaide House. 107 Leadenball Street.

London EC3A 4AF Telephone: 020 7623 9477 Pacsimile: 020 7623 5428

COPIES FURNISHED TO:

JOSEPH GUNSET, GENERAL COUNSEL UNDERWRITERS AT LLOYD'S LONDON c/o LLOYD'S AMERICA, INC. 25 West 53'd Street New York, New York I 0019 E-Mail: jQ5_~Ql\Jlli!ls~t@ll£ylbf9lll

AUSTIN B. NEAL, ESQ. Foley & Lardner, LLP I 06 East College Avenue, Suite 900 Tallahassee, Florida 32301 E-Mail: ;!llcai(ci.•folcv.com

DAVID AL TMAIER, DEPUTY COMMISSIONER Office of Insurance Regulation 200 East Gaines Street Tallahassee, FL 32399

ROBERT RIDENOUR, DIRECTOR Office of Insurance Regulation 200 East Gaines Street Tallahassee, FL 32399

PATRICK D. FLEMMING, ASSISTANT GENERAL COUNSEL Office of Insurance Regulation 200 East Gaines Street Tallahassee, FL 32399 E-Mail: l'atrick.Ficmm [email protected]

Page5of5

EXHIBIT A

FILED DEC 31 2015

OFFICE OF

OFFICE OF INSURANCE REGULATION ........ INSURANCE RF,;t:IJ\TION IJWill!edby: ~ 3

KEVIN M. MCCAHTY ( :( Jl\1~1l~Sl C l\:LR

IN THE MATTER OF:

UNDERWRITERS AT LLOYD'S, LONDON I

CONSEN'l' ORDER

CASE NO.: 184076-15-CO

TillS CAUSE came on for consideration as a result of an agreement between

UNDER WRITERS AT LLOYD'S, LONDON (hereinafter referred to as "LLOYD'S") and the

FLORIDA OFFICE OF INSURANCE REGULATION (hereinaltcr referred to as the

"OFFICE") regarding LLOYD'S's status as a Certified Reinsurer in the state of Florida.

Following a complete review of the record, and upon consideration thereof, and being otherwise

fully advised in the premises, the OFFICE hereby finds as follows:

I. The OFFICE hasjurisdietion over the subject matter and of the parties herein.

2. LLOYD'S is a Ccrtit1ed Reinsurer in the state of Florida pursuant to Section

624.610(3)(e), Florida Statutes, Rule 69()-144.007, Florida Administrative Code, and the

Consent Order that was executed by LLOYD'S and the OFFICE on October 6, 2011, case

number 120488-11-CO ("Consent Order 120488-11-CO," attached as Exhibit A).

Page 1 of 9

3. The Consent Order was amended twice; both by Order of the OFFICE dated

January 22, 2014 and December 29, 2014 to extend LLOYD'S's status as a Certified Reinsurer1•

(collectively, the "Amendments," attached as Exhibits Band C, respectively)

4. To consolidate the Amendments and Consent Order 120488-11-CO and extend

LLOYD'S's status as a Certified Reinsurer in the state of Florida, LLOYD'S and the OFFICE

hereby execute this Consent Order and agree that it shall supersede Consent Order 120488-11-

CO and govern LLOYD'S's status as a Certified Reinsurer in the state of Florida.

5. LLOYD'S represents that its purpose for being a Certified Reinsurer under

Section 624.610(3)(e), Florida Statutes, and Rule 690-144.007, Florida Administrative Code, is

to allow ceding insurers to take credit in their accounting and in financial statements on account

of such reinsurance ceded without LLOYD'S posting full collateral.

6. LLOYD'S has represented and the OFFICE finds that LLOYD'S is still in

compliance with all of the requirements of the Florida Insurance Code and Florida

Administrative Code to being a Certified Reinsurer in the state of Florida.

7. LLOYD'S is also a certified reinsurer in the state of New York, an NAIC

accredited jurisdiction.

8. Section 2.E.(7) of the National Association of Insurance Commissioners

("NAlC") Credit for Reinsurance Model Law states:

If an applicant for certification has been certified as a reinsurer in an NAIC accredited jurisdiction, the commissioner has the discretion to defer to that jurisdiction's certification, and has the discretion to defer to the rating assigned by that jurisdiction, and such assuming insurer shall be considered to be a certified reinsurer in this state.

1 LLOYD'S was previously referred to as an "Eligible Reinsurer" in Florida. However, Rule 690-144.007, Florida Administrative Code, was amended effective July 28, 2015, to substitute the term "certified reinsurer" for "eligible reinsurer." Therefore LLOYD'S is now classified as a Certified Reinsurer in Florida.

Page 2 of9

9. Based on LLOYD'S's certified reinsurer status in the state of New York, pursuant

to Section 2.E.(7) of the NAIC Credit for Reinsurance Model Law and Rule 690-144.007,

Florida Administrative Code, this Consent Order shall remain in effect and LLOYD'S's status as

a Cer1ified Reinsurer shall continue until either LLOYD'S is no longer a Certified Reinsurer in

the state of New York or LLOYD'S surrenders its status, fails to meet the requirements of the

Florida Insurance Code or Rule 690-144.007, Florida Administrative Code, or has its status

withdrawn pursuant to Rule 690-144.007, Florida Administrative Code, or this Consent Order.

I 0. The minimum collateral a Certified Reinsurer is required to post for the ceding

insurer to take one hundred percent (100%) credit in its financial statements on account of such

reinsurance ceded is based on the secure rating the Certified Reinsurer is assigned by the

OFFICE. Pursuant to Rule 690-144.007(8)(e)l., Florida Administrative Code:

The maximum rating that a certified reinsurer may be assigned will correspond to its financial strength rating as outlined in subsection (4) of this rule. The Office shall use the lowest financial strength rating received from a rating agency indicated in paragraph 3(a)-(e) of this rule in establishing the maximum rating of a certified reinsurer.

II. LLOYD'S represents that it currently has a secure financial strength rating of

"A" from A.M. Best, "A+" from Standard and Poor's, and "AA-" from Fitch.

12. Effective July 28, 2015, Rule 690-144.007(4), Florida Administrative Code, was

amended so that, among other things, a rating of A from A.M. Best and A+ from Standard and

Poor's now corresponds to a Secure - 3 rating and a collateral requirement of twenty percent

(20%).

13. For purposes of Rule 690-144.007(4), Florida Administrative Code, LLOYD'S

acknowledges the collateral required for the ceding insurer to take one hundred percent (100%)

credit in its financial statement on account of such reinsurance ceded be no less than twenty

percent (20%), unless otherwise amended by the OFFICE. Said collateral requirement shall take

Page 3 of9

effect for agreements incepting on or after January 1, 2015, up until such time as the collateral

requirement may be further amended by the OFFICE. For agreements incepting after October 6,

2011 and before January I, 2015, twenty percent (20%) is still the minimum collateral

LLOYD'S is required to post for a ceding company to take one hundred percent (100%) credit in

its financial statements on account of such reinsurance ceded to LLOYD'S. The OFFICE and

LLOYD'S acknowledge that LLOYD'S's collateral requirement is unchanged by the modified

security requirements in Rule 690-144.007, Florida Administrative Code, as amended and

effective July 28,2015.

14. LLOYD'S represents that each syndicate electing to post reduced collateral will

likely establish collateral security in the form of Letters of Credit for the purposes of securing its

U.S. liabilities to U.S. cedant insurers. LLOYD'S acknowledges that such Letters of Credit shall

comply with Section 624.610(4)(c), Florida Statutes, and Rule 690-144.005(6), Florida

Administrative Code. Further, any other form of security utilized by LLOYD's in lieu of Letters

of Credit for purposes of securing its U.S. liabilities shall comply with Section 624.610, Florida

Statutes, and Rule 690-144.007, Florida Administrative Code.

15. Pursuant to Rule 690-144.007(8)(d)(2), Florida Administrative Code, LLOYD'S

shall assume only the kind or kinds of reinsurance ceded by ceding insurers for which LLOYD'S

is authorized in its domiciliary jurisdiction. Further, LLOYD'S acknowledges that its Certified

Reinsurer status shall only apply to property catastrophe reinsurance.

16. LLOYD'S acknowledges that in order to maintain its status as a Certified

Reinsurer, it is required to file annually with the OFFICE all documentation required by Rule

690-144.007(8)(h), Florida Administrative Code, on or before the dates on which LLOYD'S is

required to file documentation with respect to its status as a Certified Reinsurer.

Page 4 of9

17. LLOYD'S submits to the jurisdiction of the United States' courts and has

appointed an agent for service of process in Florida (attached as Exhibit D). Ftirthermore,

LLOYD'S agrees to post one hundred percent (1 00%) collateral for its Florida liabilities if it

resists the enforcement of a valid and final judgment from a court in the United States or if

otherwise required by the OFFICE pursuant to Rule 690-144.007, Florida Administrative Code.

18. LLOYD'S affim1s that all representations made herein and in connection with this

Consent Order are true and material to the issuance of this Consent Order. LLOYD'S further

acknowledges that all requirements set forth herein are material to the issuance of this Consent

Order.

19. LLOYD'S agrees that it will adhere to the continuing requirements for a Certified

Reinsurer as described in Rule 690-144.007, Florida Administrative Code.

20. LLOYD'S shall report to the OFFICE, Bureau of Propet1y & Casualty Financial

Oversight, any time that it is named as a party defendant in a class action lawsuit within fifteen

(15) days after the class is certified, and LLOYD'S shall include a copy of the complaint at the

time it reports the class action lawsuit to the OFFICE.

21. LLOYD'S agrees that, upon execution of this Consent Order by the OFFICE,

failure to adhere to one or more of the terms and conditions contained herein may result, without

further proceedings, in the withdrawal of LLOYD'S's status as a Certified Reinsurer in this state

in accordance with Sections 120.569(2)(n) and 120.60(6), Florida Statutes.

22. The deadlines set forth in this Consent Order may be extended by written

approval of the OFFICE. Approval of any deadline extension is subject to statutory or

administrative regulation limitations.

23. Each party to this action shall bear its own costs and attorneys' fees.

Page 5 of9

24. Executive Order 13224, signed by President George W. Bush on September 23,

2001, blocks the assets of terrorists and terrorist support organizations identified by the United

States Department of the Treasury, Office of Foreign Assets Control. The Executive Order also

prohibits any transactions by U.S. persons involved in the blocked assets and interests. The list

of identified tenorists and tetTorist support organizations is periodically updated at the Treasury

Department's Office of Foreign Assets Control website, http://www.treas.gov/ofac. LLOYD'S

shall maintain and adhere to procedures necessary to detect and prevent prohibited transactions

with individuals and entities that have been identified at the Treasury Department's Office of

Foreign Assets Control website.

25. LLOYD'S expressly waives a hearing in this matter, the making of Findings of

Fact and Conclusions of Law by the OFFICE, and all further and other proceedings to which it

may be entitled by Jaw or rules of the OFFICE. LLOYD'S hereby knowingly and voluntarily

waives all rights to challenge or to contest this Consent Order in any forum now or in the future

available to it, including the rights to any administrative proceeding, circuit or federal court

action, or any appeal.

26. LLOYD'S and the OFFICE agree that this Consent Order shall be deemed to be

executed when the OFFICE has signed a copy of this Consent Order bearing the signature of

LLOYD'S or its authorized representative notwithstanding the fact that the copy was transmitted

to the OFFICE electronically. Further, LLOYD'S agrees that its signature as affixed to this

Consent Order shall be under the seal of a Notary Public.

Page 6 of9

WHEREFORE, the agreement between UNDER WRITERS AT LLOYD'S, LONDON

and the OFFICE OF INSURANCE REGULATION, the terms and conditions of which are set


FURTHER, all terms and conditions above are hereby ORDERED. ~d--

OONE and ORDERED this3f:' __ day of 0~:> Q.Q':\L~( , 2015.

Kevin M. McCary, Commissione Office of Insurance Regulation

Page 7 of9

By execution hereof, UNDERWRITERS AT LLOYD'S, LONDON consents to entry of this Consent Order, agrees without reservation to all of the above terms and conditions, and shall be bound by all provisions herein. The undersigned represents that he or she has the authority to bind UNDERWRITERS AT LLOYD'S, LONDON to the tenns and conditions of this Consent Order.

[Corporate Seal]

:"w,PJCt" Print Name: -::::10.se'!ld H J>. 6; V # Sf!"l

Title: <;'tri'I~~A t.. C.ov,J.t61.. 1 l..t..•'t o :r Date: ___,1_,2,__,_/_,:J"-"oY.,i~'..:t}r~-----

STATEOF ?J:wr~k:' COUNTY OF A/IZIA) Y ~Jt:.-

The foregoing instrument was acknowledged before me this32_~ay of ~4-'015, by 'Tott!PJ.+ 8 CvN.ff"r as G' E"AIIrtf~ C owJ!' 6l...

(name of person) (type of authority; e.g.1 officer, trustee, attorney in fact)

for Lt..~v { 4-v.rA /t'A.1 l~o~~.-. (camp~ name)

iJgjf}i-;r-(Signature of the Notary)

TtMO'IH't'W. GRANT NIAll)> Public, Slf!e of NewYorll

No. 02GR6296018 Quollfled ~ Kings Coull ' · ·

Convnlnlon £Jcp/!!O Mlll:ll I · 2011 _• I

(Print, Type or Stamp Commissioned Name of Notary)

Personally Known or Produced Identification~--

Type of Identification Produced. __________ _

Page 8 of9

"


JOSEPH GUNSET, GENERAL COUNSEL UNDERWRITERS AT LLOYD'S, LONDON c/o LLOYD'S AMERICA INC. 25 West 53'd Street New York, New York 10019 E-Mail: joseph.gunsct0Jlloyds.com

AUSTIN B. NEAL, ESQ. Foley & Lardner LLP I 06 East College Avenue Suite 900 Tallahassee, Florida 3230 I E-Mail: aneali{V.folcv.com

DAVID ALTMAIER, DEPUTY COMMISSIONER Prope1iy and Casualty Office of Insurance Regulation 200 East Gaines Street Tallahassee, FL 32399-0329 E-Mail: Pavid .A ltmaier!illll oir.com

ROBERT RIDENOUR, DIRECTOR Property and Casualty, Financial Oversight Office oflnsurance Regulation 200 East Gaines Street Tallahassee, FL 32399-0329 E-Mail: Robcrt.RidenourriVIloir.com

VIRGINIA A. CHRISTY, CHIEF ASSISTANT GENERAL COUNSEL Office oflnsurance Regulation Legal Services Office 200 East Gaines Street Tallahassee, FL 32399 E-Mail: Virginia. Christv(a;floi r.com

Page 9 of9

05994' filED OCT 6 ·2011


KEVIN M. MCCARTY COMMISSIONUII

IN THE MA TI'ER Or:

UNDERWRITERS AT LLOYD'S, LONDON

-------------------------' CONSENT QRDEH

CASE NO.: 120488-11-CO

Tfi!S CAUSE came on fat· consideration upon the filing of an application with the

OFFICE OF INSURANCE REGULATION (h~reinafter referred to as the "OFFICE") by

UNDERWRITERS AT LLOYD'S, LONDON (hereinafter referred to as "APPLICANT") to

become an Eligible Reinsurer (hereinafter referred to as "Application"), pursuant to Section

624.610(3)(e), Florida Statutes, and Rule 690-144.007, Florida Administrative Code (which is

hereby incorporated by reference and attached as Exhibit A). Following a compl~te r~view of

the entire record, and upon consideration thereof, and being otherwise 1\tlly advised in the

premises, the OFFICE hereby finds, as follows:

I. The OFFICE has jurisdiction over the subject matter and ofthe.pariies herein.

2. APPLICANT has applied for and, subject to the present and continuing

satisfaction of the requirements, terms, and conditions established herein, met all of the

conditions precedent to becoming an Eligible Reinsurer in Flo1ida, pmsuant to the requirements

set forth by the Florida Insurance Code.

3. APPLICANT ls an association of incorporated and individual unincorporated

underwriters ( hereinafter referred to as "Members'') organized into syndicates for the puq1ose of

Page I of 10

EXHIBIT

l _/i__j f? /?:P

. '

assuming risk under contracts of insmance and reinsurance, APPLICANT, which has been

continuously in operation since 1688, is domiciled in the United Kingdom and is regulated by the

Financial Services Authority based in London, United Kingdom, APPLICANT, on behalf of its

syndicates and/or Members who transact reinsurance business in the United States who will elect to

post reduced collateral, are collectively the subject of this Application, APPLICANT represents that

such syndicates and/or Members are among the insurers identified on the National Association of

Insurance Commissioners' Listing of Companies. APPLICANT represents that all of its Members

are required to contribute to the Lloyd's Central Fund which is maintained as an additional layer of

security for policyholders. APPLICANT further represents that Lloyd's Central Fund was

established in 1927 and since that time has been utilized to pay claims whenever an underw!'iting

Member's assets have not been sufficient to meet liabilities. Said representations are material to the

issuance of this Consent Order.

4. APPLICANT represents that it is one of the oldest and largest alien reinsurers

operating in the U.S. and that Florida has historically been and continues to be a significant state

for APPLICANT's U.S, business. Florida has represented the second largest reinsurance

premium volume in the U.S. and one of the top three states in regards to surplus lines premiums

in the U.S. for APPLICANT for the last several years.

5. APPLICANT represents that the Members place funds in trusts according to

capital levels set by the Corporation of Lloyd's in accordance with the Financial Services

Authority's requirements for Individual Capital Adequacy Standards for insurers as set out in the

General Prudential Somcebook and the Prudential Sourcebook for Insurers. APPLICANT further

represents that Lloyd's Central Fund is available, in accordance with the terms and conditions of

the Lloyd's Act, to ensure that valid claims are met for post 1992 non-life claims and all life

claims. The Lloyd's Central Fund protects policyholders in case any underwriting Member

Page 2 of 10

should be unable to meet its insurance liabilities in full out of syndicate Trust Funds. Said

representations are material to the issuance of this Consent Order.

6. APPLICANT represents that in addition to the Lloyd's Central Fund as

referenced in paragraph ftve (5) above, central assets may be supplemented by a callable layer of

up to three percent (3%) of Members' overall premium limit in any one calendar year.

APPLICANT further represents that the Corporation of Lloyd's assets are also available to meet

underwriting liabilities. Said representations are material to the issuance of this Consent Order.

7, APPLICANT has represented that the purpose of its Application to become an

Eligible Reinsurer under Section624.610(3)(e), Florida Statutes, and Rule 690-144.007, Florida

Administrative Code, is to allow ceding insurers (defined in the Rule as domestic insurers) to

take credit in their accounting and in financial statements on account of such reinsurance ceded

without full collateral.

8. In determining APPLICANT's qualifications as an Eligible Reinsurer pursuant

to Section 624.610(3)(c), Florida Statutes, and Rule 690-144.007, Florida Administrative Code,

the OFFICE has considered the following information submitted by APPLICANT or obtained by

the OFFICE:

a. APPLICANT's statutory capital and surplus equivalent was approximately

twenty-nine billion eight hundred seventy-one million U.S. Dollars ($29,871,000,000) as

repotted in its statutory financial statement as of December 31, 2010, which exceeds the two

hundred fifty million U.S. Dollars ($250,000,000) surplus required under Section 624:610(3)(e),

Florida Statutes.

b. APPLICANT's secure financial strength rating from at least two (2)

nationally recognized statistical rating organizations;

c. The domiciliary regulatory jurisdiction of the APPLICANT;

Page 3 of 10

d. APPLICANT's domiciliary regulator stmcture and authority with regard

to solvency regulation requirements and financial surveillance;

e. The substance of financial and operating standards required by

APPLICANT's domiciliary regulator;

f. The form and substance of financial reports or other public financial

statements required to be filed by the reinsurers in APPLICANT's domiciliary jurisdiction in

accordance with generally accepted accounting principles;

g. APPLICANT's domiciliary regulator's willingness to cooperate with

United States regulators in general and the OFFICE in particular;

h. The history and performance of reinsurers in APPLICANT's domiciliary

jurisdiction; and

i. Other pettinent information submitted by APPLICANT pursuant to

. Section 624.610(3)(e), Florida Statutes, and Rule 690-144.007, Florida Administrative Code.

9. APPLICANT shall adhere to the continuing requirements for an Eligible Reinsurer

as described in R\tle 690-144.007, Florida Administrative Code.

10. For purposes of Rule 690-144.007(4), Florida Administrative Code,

APPLICANT acknowledges the collateral required for the ceding insurer to take one hundred

percent (I 00%) credit in its financial statements on account of such reinsurance ceded be no less

than twenty percent (20%), unless otherwise amended by the OFFICE. Said collateral

requirement shall only apply to property catastrophe reinsmance being provided by the

APPLICANT to ceding insurers in Florida and shall take effect for agreenwnts incepting on or

after the date of execution of this Consent Order up until such time as the collateral requirement

may be amended by the OFFICE.

Page 4 of 10

11. APPLICANT represents in its Application that each syndicate electing to post

reduced collateral will likely establish collateral security in the form of Letters of Credit for

pul'poses of securing its U.S. liabilities to U.S. cedant insurers. Such Letters of C1·edit shall

comply with Section 624.610(4)(c), Florida Statutes, and Rule 690-144.005(6), Florida

Administrative Code. Further, any other form of security utilized by APPLICANT in lieu of

Letters of Credit for purposes of securing its U.S. liabilities shall comply with Section 624.610,

Florida Statutes, and Rule 690-144.007, Florida Administrative Code.

12. Pursuant to Rule 690-144.007(8)(c)(2), Florida Administrative Code,

APPLICANT shall assume only the kind or kinds of reinsurance ceded by ceding insurers for

which APPLICANT is authorized in its domicilimy jurisdiction. Further, APPLICANT

acknowledges that the eligible reinsurer status shall only apply to property catastrophe

reinsurance.

13. APPLICANT acknowledges that in order to maintain its eligible reinsurer status

it is required to file annually wW1 the OFFICE all documentation req11ired by Rule 690-

144.007(8)(e)t.-5., Florida Administrative Code, on or before the anniversary date of the

execution of this Consent Order, including, but not limited to, a copy of the Society of Lloyd's

financial statement on International Financial Repmting Standards basis with reconciliation to

U.S. Generally Accepted Accounting Principles.

14. APPLICANT submits to the j11risdiction of the United States courts and has

appointed an agent for service of process in Florida (which is hereby incorporated by reference

a11d attached as Exhibit B). Furthermore, APPLICANT agrees to post one hundred percent

(100%) collateral for its Florida liabilities if it resists the enforcement of a valid and final

judgment from a coUit in the United States or if otherwise required by the OFFICE pursuant to

Rule 690-144.007, Florida Administrative Code.

Page 5 of 10

15. This Consent Order shall expire on December 31 '1, 2013 at 11:59 PM.

16. APPLICANT shall report to the OFFICE, Bureau of Property & Casualty

Financial Oversight, any time that it is named as a party defendant in a class action lawsuit,

within fifteen (15) days after the class is certified, and APPLICANT shall include a copy of the

complaint at the time it reports the class action lawsuit to the OFFICE.

17. APPLICANT shall pay withilt thirty (30) days of execution of this Consent

Order, two thousand five hundred U.S. Dollars ($2,500) for legal costs associated with this

Consent Order.

18. The deadlines set f01th in this Consent Order may be extended by written

approval of the OFFICE. Approval of any deadline extension is subject to statutory or

administrative regulation limitations.

19. APPLICANT affirms that all representations are true and all requirements set

forth herein arc material to the issuance of this Consent Order.

20. APPLICANT shall report to the OFFICE within sixty (60) days from the date of

the execution of this Consent Order a certification evidencing compliance with all of the

requirements of this Consent Order. Any exceptions shall be so noted and contained in the

certification. Exceptions noted in the certification shall also include a timeline defining when the

outstanding requirements of the Consent Order will be complete. Said certification shall be

submitted to the OFFICE via electronic mail and directed to the attention of the Assistant

General Counsel representing the OFFICE in this matter and as named in this Consent Order.

21. APPLICANT agrees that, upon execution of this Consent Order by the OFFICE,

failure to adhere to one or more of the terms and conditions contained herein may result, without

further proceedings, in the withdrawal of APPLICANT's status as an Eligible Reinsmer in this

state, in accordance with Sections 120,569(2)(n) and 120.60(6), Florida Statutes. APPLICANT

Page 6 of 10

further agrees that it shall constitute an immediate danger to the public health, safety, or welfare

for pmposes of Sections 120,569(2)(n) and 120.60(6), Florida Statutes, in the event of the non

payment of valid Florida claims arising from reinsurance contracts written by APPLICANT and

such non-payment is not remediatcd by payment from the Lloyd's Central Fund within a

reasonable period of time.

22, Executive Order 13224, signed by President George W, Bush on September 23,

2001, blocks the assets of terrorists and ten·orist support organizations identified by the United

States Department of the Treasury, Office of Foreign Assets Control. The Executive Order also

prohibits any transactions by U.S. persons involved in the blocked assets and interests. The list

of identified terrorists and terrorist support organizations is periodically updated at the Treasury

Department's Office of Foreign Assets Control website, http://www.treas.gov/ofac.

APPLICANT shall adhere to the requirements of Executive Order 13224 or maintain compliance

with the European Union's anti-terrorism laws.

23. APPLICANT expressly waives a hearing in this matter, the making of Findings

of Fact and Conclusions of Law by the OFFICE and all further and other proceedings herein to

which the parties may be entitled by law or rules of the OFFICE. APPLICANT hereby

knowingly and voluntarily waives all rights to challenge or to contest this Consent Order in any

forum now or in the future available to it, including the right to any administrative proceeding,

circuit or federal court action, or any appeal.

24, Except as noted in this Consent Order, each party to this action shall bear its own

costs and fees.

25. The parties agree that this Consent Order shall be deemed to be executed when

the OFFICE has executed a copy of this Consent Order bearing the signature of APPLICANT or

its authorized representative, notwithstanding the fact that the copy may have been transmitted to

Page 7 of 10

I I

the OFFICE electronically. Further, APPLICANT agrees that its signature a< affixed to this

Consent Otder shall be under the seal of a Notary Public.

WHEREFORE, the agreement between UNDERWRITERS AT LLOYD'S, LONDON,

and the ·OFFICE OF INSURANCE REGULA T!ON, the terms and conditions of which are set


FURTHER, all terms and conditions contained herein are hereby ORDERED.

DONEandORDEREDthis~ayof ~ ,2011.

Page 8 of 10

By execution hereof, UNDERWRITERS AT LLOYD'S, LONDON, consents to entry 0 (

this Conse.nt-Ordcr) agrees vltf:tt:eut tcset ~atio~ 'R\1 of t\Je abOvet€1 iiiS iltld COttditiUJtS arid shall )le bound by all provisions herein. The undersigned represents that he/she has the authority to bind UNDERWRITERS AT LLOYD'S, LONDON to the te1ms and conditions of this Consent Ordet·.

Lloyd's America, Inc., U.S. Representative

Print Name: Joseph P. Gunset

Title: General Counsel

Date: Cf/~o/11

CITY OF New York New York

COUNTRY OF United States

The foregoing instrument was ack~owledged before me thi;tDcf< day of 5 ~ 2011

by Joseph Gunset (nPJnc of person)

as General Counsel of Lloyd's America, Inc., U.S. Repre§entatjv~ (lype of 11uthorlty ... e.g. officer, uustee, a\lom~y in f11ct)

for Underwriters at Lloyd's, London {comptmy n11me)

,Personally Known V OR Produced Identification __

·Type of identification Produced ____ ---:-

{.Signahm of Nola ublic)

r/3/().(1 a.. ·~r o..k--1} N.; (Print, Type, or Stomp Commissioned Name ofNOtllr)' Publ!c

Page 9 'of 10


JOSEPH GUNSET, GENERAL COUNSEL Lloyd's AmericA, Inc. 25 West 53'd Street New York, New York 10019 E-Mail: [email protected]

AUSTIN B. NEAL, ESQUIRE Foley & Lardner LLP I 06 East College A v~nue, Suite 900 Tallahassee, Florida 32301 E-Mail: [email protected]

WES STRICKLAND, ESQUIRE Foley & Lardner LLP 106 East College Avenue, Suite 900 Tallahassee, Florida 3230 I E-Mail: ostrlckland@foley com

ELIZABETH ("LIBBY") THOMSON, FINANCIAL ADMINISTRATOR Bureau of Property and Casualty Financial Oversight · Office oflusurance Regulation 200 East Gaines Street · Tallahassee, Florida 32399-0329 E-mail: e!izabeth.thomson@floil".com

ERNESTO ("ERNIE") DOMONDON, FINANCIAL EXAMINER/ANALYST SUPERVISOR Bureau of Prope1ty and Casualty Financial Oversight Office oflnsurance Regulation 200 East Gaines Street Tallahassee, Florida 32399-0329 E-Mail: ernje,domondone@flojr,com

WENCESLAO TRONCOSO, ASSISTANT GENERAL COuNSEL Legal Services Office

.. Office of Insurance Regulation ~00 East Gaines Street Tallahassee, Florida 32399-4206 Telephone: (&50) 4 13·4 I 74 E-mail: [email protected]

Page 10 of 10

620·144.007 Credit for Reinsurance fl-om Eligible Reinsurers. VHurposc. ParagrapH (3)(e) of Seclion 624.610, F.S., gives the Commissioner the option to allow credit for reinsurance

without full collateral for transactions Involving assuming Insurers not meeting the requirements ofSccilons 624.610(3)(a)·(d), F.S. These rules Implement !hot paragraph. This rule docs not apply to reinsurers that meet the requirements of Sections 624.610(3)(a)(d), F.S. This rule is not an attempt to assert extra·terrltorial Jurisdiction. Insurers that write in states other than Florida will need to comply with the laws of those states. This rule applies only to property and casualty Insurance; it does not apply to life and health.

(2) Definitions. As used in this rule the following terms havelhe following meanings: (a) 11Ceding insurer'' means a domes lie lnsunn. as defined by paragraph (l) of Section 624.06, F.S. (b) "Eligible reinsurer' means an assuming insurer which does not meet the requirements of paragraphs (3)(a), (3)(b) or (3)(c)

of Section 624.610, P.S., ~md which has been de~ennlned by the commissioner by order to have met the requirements: set forth In subsections (7) and (8) of this rule.

(c) "Eligible Jurisdiction" means a Jurisdiction which has met the requirements set forth In subsection (8) of this rule. (3) With respect to reinsurance contracts entered Into or renewed on or after 'he etfecUve dote of !his rule, a ceding Insurer may

elect to toke credit, as on asset or deduction from reserves, for reinsurance ceded to an eligible reinsurer, provided that the eligible reinsurer holds surplus in excess of $100 million and maintains, on a stand·alone basis seporate t\om Its parent or any affiliated entities, a secure financial strength rating from at least two of the rating agencies indicated In paragraphs (a) through (d) of this subsection. The credit is subject to the limitations set forth in this rule. The rating agencies are:

(a) Standard and Poor's; (b) Moody's Investors Service; (c) Fitch Ratings; (d) A.M. Best Company; or (4) The collateral required to allow ~00% credit sho.ll ba no Jess than the percentage specified for. the lowest rating as Indicated

below: Collateral ·Best S&P Moody's Fitch Required

0% A++ AAA Aaa AAA

10% A+ . AA+, AA, AA· Aal, Aa21 Aa3 AA+,AA, AA·

20% A, A- A+, A, A· AI, A2, AJ A+, A, A-

75%. B++, D+ BBO+, BBB, BBB· Baal, Baa2, Baa3 BBB+, BBB, .BBB·

B,B~,C++,C+,C,C·, BB+,BD,BI3-.B+,B,B· Bai,Ba2,Ba3,B I,B2,B3,

BB+,BB,BB·,B+,B, 100% D,E.F

,ccc,cc,c, Caa,Ca,C

B·,CCC+,CCC,CC D,R,NR C·,DD

For reinsurance ceded by Florida domestic property insurerS for short-tailed lines as defined below, any collateral required to be posted may be subJect to a one-year deferral from tho date of the first Instance of a Uabpity reserve entry as a result of a cataslrophlc loss from a named Hurricane. For these purposes, a short-tailed line of business Ia defined "' any one of the following tines of business as reported on the NAIC annual financial statement: Line· I Fire Line 2 Allied lines

·Line 3 Farmowners mulliple peril Une 4 Homeowners multiple peril Une 5 Commercial multiple peril Line 9 Inland marine Uno 12 Earthquake Une 21 Auto physical damage

(5) Nothing In this rule shall be construed to deny the ceding insurer the ability to take credit for rolnsurance for the remainder of Its liabilities with en eligible reinsurer so long ~ those amounts arO secui'td with acceptobie 'collateral. pursUant to Section 624,610(4), P.S. .

EXHIBIT

I A

(6) In addition to lhe nust fund required under paragraplt (l)(c) of Section 624.610, F.S., the commissioner shall permit an assuming hisUter lhit mamta\l!s a trust IUtRtln a qifalttnl'd Uiltted States financial msnttitlon, as that tenn ff'tietined I~ paragraph (S)(b) of Section· 624.610, F.S., for tho payment of lhc volid claims of' its Uniled Slates cedenl Insurers and lheir assigns and successors in Interest to also tnaintain in a qu•llfled United Slates financial institution a trust fund constitutlng a ;rusleed amount at least equal to. the collateral required in accordance with subsection (4) of this rule to secure the liabilities a«rlbutablc to United States cedent Insurers under reinsurance po\icfes (contracts) entered into or ren~wed by such ossuming insurer on or after the effective date of lhls rule or such olher dale as may be established in olher states for cedent Insurers domiciled In such states, but only when maintenance of such a trust fund serves to protect the interests of the pub lie and the Interests of insurer solvency.

(1) A ceding Insurer may not take credit punuant to lhls rule unless: . (a) The reltUurer has been determined, by order of the commi!Sioner, to be an eligible relnSIIfer, pursuant to subsection (8) of

thisrule; (b) The ceding Insurer mainlains sotisfaetory evidence thai the eligible reinsurer meets the standards of solvency, including

stondards for capital adequacy, established by its domestic regulator; (c) All reinsurance contracts between the ceding Insurer and the eligible reinsurer must provide: 1. For an Insolvency clause in conformance with Section 624.610(8), F.S.; 2. For aservlce of process clause in conformance with Section 624.610(3)(Q I, and 2; F.S.; and 3. For a su~mlsslon to jurisdiction clouse in conformance with Section 624.610())(1) I. and 2, F.S. (8) Status as eligible reinsurer: (a) Application for a determination as an•cllgible reinsurer under this rule shall be made by cover le«er from the insurer

requesting a finding of eligibility os a reinsurer pursuant to this rule. Tlte cover letter shall be accompanied with 'the following: t, Audited flnantlal statements from inception or for the \a~t 3 ye~rs, whichever Is less, filed with its domiciliary wgulator by

the reinsurer or, in the CASe of a rated group, by tha group, pursuant to or including a recanclliatlon to U.S. OAAP, O.S .. Statutory Accounting ?rinclples, or lntom•lional Financial Property Standards (lFRS); the requirement for 3 years reconciliation shall be waived by·the office if the commissioner determines lhat other provided financial information will be as useful in the determlnalion of financial h~alth of the reinsurer;

. 2. Documenlation that the applicant submits to the Jurisdiction of the United States courts, appoints an agent for service of process In Florida, and agrees to post 100% collateral for its Florida llabllllies if it rosiaiS enforcement of a valid and llnal judgment from a coun ln the United States, or If otherwise required by the OfOce pursuant to this rulo;

3. A report lhat provides Information to the office as to Its ceded and ceding Insurance; the Information may be provided In tho form of the NAlC Property and Casualty Annual Filing Blank Schedule F, or in any manner that provides the Offico wlih the same information obnut Its ceded and ceding insurance that Is disclosed by the NAIC PropertY and Casualty Annual Flling Blank Schedulo F· •

· 4. A list of all disputed or overdue recoverables due to or claimed by ceding Insurers, whether or no\ the claims are In litigation or arbltratlonj

5. A oertificalion from the domiciliary regulator of the Insurer that the company is in good standing and that tho regulator will provide flnancialand operalionnllnformntlon to the Office.

(b)The determination of eligibility will be made by order executed by the Commissioner. (c) To become an eligible reinsurer, tho reinsurer, at a minimum: 1. Shall hold surpl"s in excess of$t00 million; 2. Shall be authorized ln Its domiciliary jurisdiction to assume the kind or kinds of reinsurance ceded by tlie ceding insurer; and, 3. Shall be domiciled in an eligible jurisdiction as defined in subsection (9), (d) lflhe Commissioner determines, based upon the material submiUed, and any other relevant information, that itls .In the best

Interests of market liability and the solvency of ceding Insurers, the Commissioner will find, by or<ler,lllat the Insurer Is an ellglble reuisurer and will set an amount of credltollowcd for tho rcinsurctlf lower than the amount set forth in subsection (4).

(e) Every eligible reinsurer shall file the following information annually with the Office, on the anniversary of the order grsn11ng it eligibility:

1. A statement cenlf'ylng that there has been no change In I he provisions of Its domiciliary license ~r any of Us financial strength ratings, or a statement describing such changes and the reasons therefor;

2. A copy of all flnanci~l statements filed with their domlclliary regulator;

3, Any change in its directors and officers; 4. Ari Updated \1st ot ail disPUted und oVerdUe:=teHmrr!lfcnJalms regardifi&rclnsurance aSsUmed tTom U.S, domest1c ceding

insurers; and 5. Any other' information that the Office may require to assure market stability and the solvency of ceding Insurers. (!) An eligible reinsurer must Immediately advise the Office of any changes in Its ratings assigned by rating agencies, or

domiciliary license status. . · (g) At any lime, If the Commissioner detennlnes thnt it io In the best interests of market stability and the solvency of ceding

insurers, the Commissioner wilt withdraw, by order, any detenninatlon of an Insurer as an eligible reinsurer or require the reinsurer to post additional collateral.

(h) If the rating of an eligible reimurer rises obove that used.by the Commissioner in his or her determination of the credit. allowed for the reinsurer, an affected party may petition the Commissioner for a rodetermlnatlon of the mdlt allowed. If it Is In tho best intemts of market stability and the solvency of ceding insurers, the Commissioner will raise the credit allowed for the rein&urer.

(9) Status as an eligiblejurisd'ICtion: (a) The determination of a jurisdiction as an eligible jurisdiction Is to be made by the Commissioner. No jurisdiction shall be

determined to be an eligible jurisdiction unless: I. The Insurance regulatory body of the jurisdiction agrees that It wilt provide Information requested by the OffiCe regarding its

eligible domestic reinsurers; 2. The Office has determined that the jurisdiction has a satisfactory structure and authority with regard to solvency ·regulation,

acceptable flnanclai and operating standards for reinsurers In the domiciliary jurlsdlctlQn, acceptable transparent financial reports filed in accordance with generally accepted accounting principles, and ver!fiablo evidence of adequate and prompt enforcement of valid. U.S. Judgm~nts or urbltrnllon nwards;

3. The Office has detennined that the history of performance by reinsurers In tho jurisdiction Is such that the Insuring publlc will be served by a finding of eligibility; ·

4. For non· US jurisdictions, the jurisdiction allows U ,S, reinsurers access to the market of the domie\1\ary jurisdiction on terms ~nd conditions that are at least a~ favorable as those provided in Florida law and reg.ulations for unaccredited non~U.S. assuming Insurers; and

5. There is no other documented Information that It would not serve the best Interests of the Insuring public and the solvency of ceding Insurer> to make a finding of eligibility.

(b) if the NAIC Issues findings that certain jurisdlclions should be considered eligible jurisdictions, the Commissioner shall, if it would serve the best interests of the Insuring public and the solvency of ceding insurers, make a determination that jurisdictions on the.NAIC list are eligible jurisdictions. ·

(c) If the Co~mlssloner determines thnt it Is in the best Interests of market stability nnd tho solvency of ceding Insurers, the Commissioner shall withdraw, by order, the determin'ation of a jurisdiction as an eliglbie jurlsiJlction.

(IO)(a) If the rnllng of on eligible reinsurer Is below or falls below that required in subsection (4) for the respective amount of credit, the oxlstlng credit to the ceding Insurer shall be adjusted accordingly, Notwithstanding the change or withdrawal of a eligible reinsurer's rating, the Commissioner. upon a determination that the interest of ensuring merket stability and the ~Oivency of the ceding Insurer requires it, shall, upon request by the ceding insurer, authorize the ~;edlng insu~er to continue to take credit for the reinsurance recoverable, or part thereof, relating to tho rating change or withdrawal for some specified period of time following such change or withdrawal, unless the reinsurance recoverable I$ deemed uncollectible,

(b) if the ceding Insurer's experience in collecting recoverable! from any eligible reinsurer Indicates that the credit to the ceding lnsurershould be lower, the ceding insurershall notify the office or this.

(It) Tho ceding insurer shall give immediate notice to the Office and provide for tho necessary Increased reserves with respect to any reinsurance recoverables applicable, In the event: ·

(a) That obligations of an eligible reinsurer for which credit for relnswance was taken under this rule are more thon 90 days past due and not In dispute; or .

(b) That there Is any indication or evidence that any eligible reinsurer, with whom the coding Insurer has a contract, fells to substantially comply with the solvency requirements under the Jaws. of lis domiciliary jurisdiction,

(12) The Commissioner shall disallow all or a portion of the credit based on a review of the ceding insurer's reinsurance program, the financial cond,itlon of the eligible reinsurer, the eligible reinsurer's claim payment history, or any other relevant

information when such aclion Is In the best interests of market stability and the solvency of the ceding lnsu,rer. At any time, the · · · lit the ellglble telnsmeJ, I he fUiiJie ot au 6Hgi!Jte=te'illStitet to &Operate wnh

the Office Is grQU~ds for the Commissioner to withdraw the status of the insurer as an eligible reinsurer or for the disallowance ot redu.c.tion of tho credit granted under th_is rule.

(13)(a) Upon the entry. of an order of.rchabllitation, liquidation, or conservation against the ceding Insurer, pursuant to Chapter 63 I, Pa!11, F.S., or the equivalent law of another jurisdiclion, an eligible reinsurer, within 30 days of the order, shall fund the entire amount that the ceding Insurer has taken, as an asset or deduction from reserves, !Or reinsurance recoverable from the el.lgtbie reinsurer. TRe'lnsurermay request a variance and waiver from this provision as provk!ed by Section 120.542, F.S,

(b) If an eligible reinsurer falls to comply on a limely basis with paragraph (a) of this subsection, the Commissioner shall ·withdraw the rel~surer's eligibility under this rule.

(14) 'the Commissioner may, by order, determine that credit shnl! nor be allowed to any Insurer for reinsured risk pursuant to this rule If it appears to the Commissioner that granting oflhe credit to the ceding i!lSurer would not be in the public Interest or servo the best Interests of the ceding insurer's solvency,

(15) Nothing In this rule prohibits a ceding Insurer and a reinsurer from entering inlo agreements establishing collateral requ!icmcnts In excess of those set forth In this rule. Specljlc A11rhorlty 62008, 614.610(14) FS. Lew lmpl•m•nred 614.307(1), 624.610 FS. Hisrory-N•w 10·29·08.

Onlform Consent lo Service of Process

·Certain Underwdtcrs at Lloyd's, London, insurers pa,·ticipating in an insurance market organized unaor the laws of the United Kingdom, acting through their duly authorized United States Representative, for purposes of complying with the laws of Florida designate hereundc1· relating to theit· status as an eligible reiilsuro,· in Florida, pursuant to n resolution adopted by the board of directors of Its United States Representative, hereby Irrevocably appoint the Chief Financial Officer of the State of Florida and his successor, as identified in Exhibit A hcre~Jnder, as their attorney in Florida upon whom mny be served any notice, process or pleading as requh·cd i>y law in an'y action or proceeding against them in Florida arising out of minsurance agreement(s) issued by them so designated; and do hereby consent that any lawful action or proceeding against them, relating to. issues arising out of such reinsurance agreement(s) may bo commenced in any co\U·t of competent jul'isdlction and proper venue within Florida so designated; and ag1·ee that any lawful process against them which is served under this appointment shall be of the same legal force and validity as if served on them directly.

United States Representative Officer's Cortlficatlou and Attestation

I. I acknowledge that I atn authorized to execute and am executing this document on behalf ofcel'lain Underwriters at Lloyd's, London.

2. I hereby certify under penalty of perjury under the laws of tho applicable jul'isdlctions that, to the best of my knowledge, infotmation and belief, all of the forgoing is true and con·ect, executed at Now York, New York.

Date Signature

Patricia J. Lubcy, Msistnnt Secretary

Lloyd's, America, Inc., acting as

US Rcp•·esentative of certain

Unde1writers at Lloyd's London

~XHIBIT

\ B TAlL_212828.1

Uniform Consent to Strvlce of PrOcess

Exhibit A

Pi a c c at ")(A'hof<M'--o-dwna-~Fa/F#'"'"!to1""'FoFwlli<h=tl>O'J'om>IR!WMiifrs''tl!llr:Mlt\l>riimll'll>'s "uppo1j)JRlintfffg=fflt: deslgiinted ifui[iu thut State for receipt of service of process·.

AL C¢mmissioner of Insurance Nand Resident MT Commissioner of Insurance II Agent*

AK Director of insurance# NE Officer of Company• or Resident Agent• (c\rclo one)

AZ Director oflnsurance #II NH Commissioner of Insurance I# AR Resident Agent • NV Cominlssioner of Insurance of Insurance

Commission # " AS Commissioner of Insurance# NJ Commissioner of Banking and Insuran-ce #h co Commissioner oflnsunmoe II or Resident NM Superintendent of Insurance#

Agent• (circle ono)' CT Commissioner oflnsurance N NY S11porinlendent of Insurance N oe Commissioner of Insurance fl NC Commisaioner of Insurance DC Commissioner ofJnsurancc and Securities

~ NO Commissioner of Insurance II"'

Regul01ion Nor Loco I Agent' (circle one) X FL Chief Financial Officer II" OH Resident Agent*

OA Commissioner oflns,mmce and Safety Piro # OR Re~ldent Agent' and Resident Agent•

ou · Commbsloner of Insurance N OK Commissioner oflnsurance U HI Insurance Commissioner tl and Resident Agent' PR Commlss'1oncr oflnsuranco # 10 Director of Insurance# 11 Rl Commissioner oflnsuraflce" IL Director or Insurance# sc Director of fnsurat~ce II IN Rt$ident Agent• "" SD DlrecJor of Insurance H A

lA Commissloneroflnsurp.m:e # TN Commissioner ofltmmmec # KS Commissioner of Insurance"' TX Resident Agent• KY Secrelary of State II UT Resident Agent• " LA Secretary of Stale # VT Secretary of State # MD Insurance Commissioner# VI Lieutenant Oovemor/CommissionerN ME Resident Agent• " WA Insurance Commissioner N Ml Resident Agent • wv Secretory of Slate#@ MN Commissioner of Commerce# WY Commissioner of Insurance I# MS Commissioner oflnsurance and Resident

Age11t• BOTH are required.

# Por·the forwarding of Service of Process re~ivcd by a Slate Officer complete Exhibit B lis~ing by .state ttte entitles (one per state) with full name nnd address where service or proce..ts b to be forw~ndecl. Use additional pages a.s necessary. Exhlblt not required for New Ieney. and North Carolina. Florida accepts only an. Individual as tho entity and requires an email addren. New Jersey allows but does not require a iorelgn insurer to dcslsnatc a specific forwarding address on Exhibit D. SC will not forward to an individual by namej however, it will forward co a position, e.g., Attention: President (or Compliance Officer, etc.).

• AU,ch a ccmpleted Exhibit B listing the Resident Agent for the Insurer (one per state), Include stale name, Resident Agent's (oil name 111d street a~ dress. Use additional pages as necessary. (DC• requires an agent within a ten mile radius of the District),

II lnitlal pleadings only. Kansas requires two signatures.

@ Fonn accepted only as part ofo Uniform Certlflcale of Aulhoril)' applicollon.

MA wlll send the required f~rm to the appliccant when the flpproval process reaches that point.

Exhibit A

®2000, 200$-2008 Nollonal Auociation oflnsurance Commissioners 2

Oetobor 6, 2008 FORM 12

UNANIMOUS WRITTEN CONSENT OP THE BOARD OF DIRECTORS OF

LLOYD'S AMERICA, INC.

Tho undersigned, being all of the directO\~ of LLOYD'S AMERICA, INC,, a New

·York corporation (the "Corporation"}, pursuant to Section 708 of the New York Business

Corporation Law, hereby consent to and adopt the followin& resolutions~

WHEREAS, the Corporation acts as the United States Representative of certain Underwl'itcrs at Lloyd's, London;

NOW, THEREFORE, BE IT:

RESOLVED, that Patricia J. Lubey, Assistant Secretary of the Corporation, is hereby authol'ized to execute and deliver to tho ChiefFinenctal Offl¢<>r of the State of Florida the Uniform Consent to Service of Process on behalf of cet1ain Underwriters at Lloyd's, London.

Dated as of Februaoy .J..L 2011

.).

Patrick Talley

Being all of the dire<:tot·s of LLOYD'S AMERICA, INC,

-

UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF


The undersigned, being-all of the directors of LLOYD'S AMERICA, INC., a New

York-corporntion (the "Corporation"), pursuant to Section 708 of the New York Busine.ss

Corporation Law, hereby consent to and adopt the following resoMions:

WH.EREAS; th.e Corporation acts as the United States Representative of oertaut Undetwriters at lloyd's, London;


RESOLVED, that. Patricia J. Lubey, Assistant Secretary ofthe Corporation, is hereby authorized 10 exeoltt.e and deliver to the Chief Financial Officer of the Stnte. Qf

P!orl8a the Uniform Cons.ent to Se~ice ofPil)cess on behalf of cert~in Underwriters at [,loyd's, London.

Dated as ofFebruory __ , 2011

-I-

Sean McGovem

Joseph P. Gunset

Henry N. Watliins

~ Being oil of the directors of LLOYD'S AMERICA, INC.

UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF


The undersigned, being Oil of the directon of LLOYD'S AMERICA, INC., a New

York corporation (the "Corporation"), P••·suant to Section 708 of the New York B•sinoss

Cot·poration Law, hereby consent to ru1d ndopt the following resolutions:

WHEREAS, tho Cot·poratlon acts as the United States Representative of certain Undctwl'ilers at Lloyd's, London:

NOW, THEREFORll, BE IT:

. RESOLVED, that Patricia J, Lubcy, Assistant Sect"Ctat·y of the Corpot·atlon, is hereby authorized to execute and detivet· to the Chief Financial Officer of tho State of Florida the Uniform Consent to Service of Process on behalf of certain Unde•writers at

· Lloyd's, London,

Dated as of Fcb'"''Y _, 20 II

·I·

Joseph P. Gunset

Henry N. Watkins

Patrick Talley

Being all of the directors of LLOYD'S AMERiCA, INC.


KEVIN M. McCARTY COMMfSSrONBR

IN THE MA TIER OF:

UNDERWRITERS AT LLOYD'S, LONDON

---------------------'

To: Unde1writers at Lloyd's, London c/o Joseph P. Gunset General Counsel Lloyd's America, Inc. 25 West 53'0 Street New York, New York 10019

ORDER

CASE NO.: 120488-11

THIS CAUSE came on for consideration upon the expiration of Consent Order 120488-

ll-CO (attached as exhibit "A" and hereby' incorporated by reference) and by the request of

UNDERWRITERS AT LLOYD'S, LONDON (hereinafter referred to as "LLOYD'S"). The

OFFICE OF INSURANCE REGULATION (hereinafter referred to as "OFFICE"), followlrig a

complete review of the entire record and upon consideration thereof, and otherwise being fully

advised in the premises, hereby finds as follows: ,


2. LLOYD'S status as an Eligible Reinsurer expired pursuant to Consent Order

120488-11-CO on December 31,2013. at 11:59 P.M.

Page I of3

I ______::j121.L__ EXHIBIT

3. LLOYD'S petitioned the OFFICE prior to expiration to continue its status as an

Eligible Reinsurer.

4. The OFFICE finds that LLOYD'S is still in compliance with all of the

requirements of the Florida Insurance Code, Florida Administrative Code, and Consent Order

120488-II·CO.

WHEREFORE, paragraph 15 of Consent Order 120488-11-CO is hereby modified to

"This Consent Order shall expire on December 31, 2014 at II :59 PM, unless extended by written

approval of the OFFICE." This modification is effective as of December 31, 2013, nunc pro

tunc. All other terms and conditions contained in Consent Order No. 120488-11-CO, not

otherwise modified as above, shall remain in full force and effect, and all terms and conditions

contained herein are hereby ORDERED. tJd DONE""' ORDERED thio ::o2 d•yof J7 '2014.

Page 2 of3


JOSI(PH GUNSET, GENERAL COUNSEL Lloyd's America, Inc. 25 West 5 3'd Street New York, New York 100!9 E-Mail: [email protected]

AUSTIN B. NEAL, ESQUIRE Fol~y & Lardner LLP 1 06 East College A venue, Suite 900 Tallahassee, Florida 32301 E-Mall aneal@foley .com

DAVID ALTMAIER, CffiEF ANALYST Property & Casualty Financial Oversight Office ofinsurance Regulation 200 East Gaines Street Tallahassee, Florida 32399-0329 E-Mail: [email protected]

VIRGINIA A. CHRISTY, ASSISTANT GENERAL COUNSEL Legal Services Office Office of I11surance Regulation 200 East Gaines S trcet Tallahassee, Florida 32399-4206 Telephone: (850)413-4220 E-Mail: virginia.cl:u:isty@floir .com

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064Z9 FILED DEC 2 9 2014

OFFICE OF

Doc~~~?~!!/ OFFICE OF INSURANCE REGULATION

KEVIN M. MCCARTY COMlvllSSIONER

IN THE MA TIER OF:

UNDERWRITERS AT LLOYD'S, LONDON ________________________ /

To: Underwriters at Lloyd's, London c/o Joseph P. Gun set General Counsel Lloyd's America, Inc. 25 West 53'd Street New York, New York 10019

ORDER

CASE NO.: 120488-11

THIS CAUSE came on for consideration upon the expiration of Consent Order 120488-

I 1-CO (attached as exhibit "A" and hereby incorporated by reference), as extended by Order

120488-ll (attached as exhibit "B" and hereby incorporated by reference), and by the request of

UNDERWRITERS AT LLOYD'S, LONDON (hereinafter referred to as "LLOYD'S"). The

OFFICE OF INSURANCE REGULATION (hereinafter referred to as "OFFICE"), following a

complete review of the entire record and upon consideration thereof, and otherwise being fully

advised in the premises, hereby finds as follows:


EXHIBIT

Page I of3 I c..... ------==---

2. Pursuant to Consent Order 120488-1 I-CO, LLOYD'S's status as an Eligible

Reinsurer was due to expire on December 3 I, 20 I 3, at I I :59 P.M. Such expiration date was

extended by Order 120488- I I, dated January 22, 20 I 4, with an effective date of December 31,

2013, to expire on December 31, 2014, at 11:59 P.M.

3. LLOYD'S has petitioned the OFFICE to continue its status as an Eligible

Reinsurer.

4. Based on documentation submitted and representations made by LLOYD'S,

LLOYD'S remains eligible to continue its status as an Eligible Reinsurer.

WHEREFORE, paragraph 15 of Consent Order 120488-I 1-CO is hereby modified to

reflect "This Consent Order shall expire on December 31, 2015, at 11:59 PM, unless extended by

written approval of the OFFICE." All other terms and conditions contained in Consent Order

120488-11-CO, not otherwise modified as above, shall remain in full force and effect, and all

terms and conditions contained herein are~by ORDERED.

DONE and ORDERED this~ Cf day of ~J/g...{./.2014.

evin M. Mccarty, Commissio Office of Insurance Regulation

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JOSEPH GUNSET, GENERAL COUNSEL Lloyd's America, Inc. 25 West 53'd Street NewYork,NewYork !0019 E-Mail: [email protected]

AUSTIN B. NEAL, ESQUIRE Foley & Lardner LLP I 06 East College A venue, Suite 900 Tallahassee, Florida 323 0 I E-Mail: [email protected]

DAVID ALTMAIER, DIRECTOR Property & Casualty Financial Oversight Office oflnsurance Regulation 200 East Gaines Street Tallahassee, Florida 32399-0329 E-Mail: [email protected]

RACHIC' A. WILSON, ASSISTANT GENERAL COUNSEL Legal Services Office Office of Insurance Regulation 200 East Gaines Street Tallahassee, Florida 32399-4206 E-Mail: rachic. wilson{a)floir.com

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U11iform Consent to Sc<·vl~o of Process

·Certain Underwriters at Lloycl's, London, i~surois participating In an Insurance market organized ullllor tho laws of tho United 1\lngdom, uotinathrough their duly nuthot·lzcd United St~t011 Repr~entativo, for purposes of complying with tho lawn of Florida dosignato hcroundor relating ·to thch· status as an eligible rotnsuro•· In Florida, pureunntto a t'«olut\on adopted by the board of directors of Its United Statos Roproscntatlvo, horoby Irrevocably appoint tho Chief Flnanolal Officer of the State of Jl\or!da and his suooessot•, as Identified In Exhibit A hereunder, as tlleir atlot·qoy In Florida upon whom mny b~ served any noll co, process Ol' pleading as l'equlred by taw In a,y action or proceeding agntnst them In Florida arising out of l'olnsuranee agreomcnt(s) Issued by them ~o doslgnahid; and do hor¢by consent that any lawful action Ol' pt·ooeedlnu against them, relating to, lssuos at•lslng out of suoh reinsurance a~recmont(s) may bo commenced In any coUJ't of competent jurisdiction and propor vonuo within Florida so designated; and agt·co that any lawful process ilgainst them which Is served under this appolntttient sha\t be ofthe same legal force and validity ns tfsorvcd on thetn dh·octly.

Unltod Stntos Rop<•csontntlvo Otncor's Ccrtlncntlon and Attosfatloi1

.t, , ) acknowledge that l a!ll authorized to execute and am oxeouting this document on behalf ofcot·taln Underwritet'$ at Lloyd's, London.

2. . I hereby certify undet· penalty of perjury under the laws of the appltenble jmlsdietlon$ that, to tho besr of my kltowlcdgo, lnfo,matlon and bellof, all of tho forgoing is true a11d cotrect, executed at New York, Now Yot·k.

EXHIBIT

Signature

Patricia J. Luboy, A~sistant Secretary

Lloyd's, limcrloo, lno., ~ctlng as

US Ropresentatlve of certain

Undotwrltors ut Lloyd's London

Unltorm Connnl to Sorvlcu of PrOcess

E>hlblt ~ Plaee IU: 0X114:cfaro l~mts<Of.tiJ..-theo<itutw=foMThioh-tltt ptiro:rvxvwt\ngathlrl'Viih hH1ppo\n1M£ ilitl detlgtftitGd iiWfiLJfnftllf=---.~ Statefor '"''PI ofservlcoofprocess: ·

AL Commissioner oflnsuranco Nand R..,ldont M1' Commbslonor oftnauranco N Agent•

AK Dlrlolor oflnsuronoo N NE 011lcor of Company' orl\,.Jdent Agent•

AZ Dlreotor of lnmanoo ff' (olrole one)

NH Commluloner oflnwenoo H AR Resident Agent ' . NV Commissioner of lnsuranco oflnsuranoe

Commlnlon N A AS Commlsslonerorrnsuranco # Nl Commissioner of Banking and lnsuran"co #A co Ccmmlsslonororrnsuronce Y or ROlldont NM Superintendent of lnaurenco H

Agont' (olrclo one) A

CT Comml,.lonor oFinsutonoo ff NY Superintendent oflnmanco H DB Commll!lonor oftnsuranco H NC Commissioner oflnsuranco DC Commissioner ofinsuranoa and Scourlllos - NO Commlsslonor oflnsur!tlco fl"

1\egulatlon #or Looal Agent' (olilllo one) lS I'L ChlofPinanolal Officer# A OH Resident Agent•

OA Commlnlonor of Insurance and Safoly Plro H OR Resident Agent• and R01ldent Agont•

ou · Commluloncr oflnsuronoe H OK Commissioner oflnsuranoo U fU Jns~ranco Comminlonor tf and Resfdcnt Agent• PR Commissioner ofln&Uranoo # ID Dlrectoroflnsurance #A Rl Commissioner of Insurance' I~ Dl~ctor or lnaure.nco II sc Dlreotor orrnsu ... ,. # TN Ro.3ldonl Agonl1 "' so Piroolor oflnauranco flh lA Commissioner oflnsurance # TN Commluloncr oflnsuranoo # KS Conunfnlontr oflnsuranc(l ~'~ rx Rosl~ent Agent' KY Secrotsry of Sisto# UT R01ldont Agent' A

LA Secretary ofStato # VT Seorotary of Stole # MD Insurance CommllSioner fl VI Lloutonant Oovomor/Commlulon<rH ME Resident Agent•' WA Insurance Commissioner H Ml Resident Age,u • wv Secretary of State N@ MN CommlssloneroFCommeroo # WY Commlulonor oflnMance H MS Commi!Sioneroflnsurance ond Resident

Agont• BOTihro required,

# FoNholbtwardlng of Service ofPiooess rcoolved by a Stato Offieorcomploto BKhlblt B lilting b~ siaio tho entitles (ono per otato) with IIIII nama nnd nddrm where mvl" or proc.,sls to be rorw•rded, Use addlllonol pag01 u neoossol)l, lllchlblt not required fbrNow Jcrsoy, and North Carolina. florida ~top~ only an.lndlvldunl u tho entlly and requires en omolladdrou. Now Jmoy allows but does not require • foreign lmror to designate a !pool no fotw~rdlng address on a~hlblt ll. sc will not foJWurd to an Individual by name; however, it will fotwalllto n position, e.g., A«entlon: Pros! dent (or Compliance Officer, eto.). ·

• A«poh 1 completed BKhlblt D listing the Resident Ago~! lbr the Insurer (one per alate). Include state name, Rooldont Agent's IIIII nama and alreeladdrcu. u,. additional pagesu ncoomry. (DC' roqulrtS on ngont within a ten milo radius ofthoDillriot).

' Initial pleadings only, Kansas requires two signatures. @Penn sooopted only •• part ofo Uniform Cettlflcole of Authority oppllefttlon. MA will •wd tho required fo,miiO tho opplloont when tho ~pprovol pro"'' rcoohes that point,

®2000, 2005·2008 National Association orrnsuranco Commlsslonara 2

October 6, 2008 FORM 12

UNANIMOUS WRITTI!N CONSBNT · 01' THB BOARD OF DIRBCTORS OP

LLOYD'S AMBR!CA, INC.

Tho underslgnctl, baing all of the dlrecto1' of LLOYD'S AMERICA, INC., n New

· Yoi·k corpol'ntioll (the "Corporation"), pursuant to Section 708 of the New York Business

Corporation Law, hereby consont to and adopt the followlngrosolutlons: ;

WHlm.EAS, tho Corporation acts a& the United States Raproscntatlvo of oortaln Underwriters at Lloyd'5, London;

NOW, Tli£REFORE; BE IT:

RESOLVED, that Jlah'lcla I, Lubey, Assistant Soorotary of the Corpora~ on, Is hereby autho•·lzed to execute at~d dollver to tho Chlefl'lnanclat OfficOl' of the Stato of Florida the Uniform Consent to Sel'vlcc ofPl'Ocess on behalf of certain Underwt·ltors at L.Joyd's,·London,

Dated as of Pebrual'y ...J.L, 2011

'.

.J.

l'atrlok Tallo)',

B~lng all of tho directors of LLOYD'S AMBRICA, INC,

.•

UNANIMous wrufrllN coNsENT OF TI-l£ BOARD OF DIRECTORS OF

LL0YJ?'S AMBI\ICA, INC.

Tllo undersigned, being·till.ofthe dlreotors of LLOYD'S AlviBRICA, INC., a New

Y.ot•k.oorpot·utton (the "Corpomtion"), pursunnt to Scotton 708 of the New York euslne~s . . Corporation Law, hereby consont to and adopt tho following resolutions:

WH.EilEAS,' th.e Corporntion Mls as th~ United Slt~l<» Rel>rooentallvo of pertain tlndetwrllers at Lloyd's, t..omlon;


· REs.Ol.VED, that.Patrlcla.J. Lubey, Assistant Scorctaryofth~ Corpormlont is h~feby·authorlzcd to eXellttl.e and dcUver'to the Chtofflinancial Ot'llcor of lho Stnte.o.f PJ'Qrlda·tM Uttlfcmn Cdns.ontto $efl(lcc o'fProc~!s on behalf of oel'll\hl Underwt'lters ·Dl l.,)()yd!s, Landon.

Dated ns ot'Februnry _, 2011

Soatl McO.oven1

Jo~epb P. Ounset

Honrr N, WMklns

~ Be ius nil ofthe dlteotors ot: LCOYD'S AMBR!CA, INC.

. '

UNANIMOUS WRITIBN CONSl3N1' OP THB BOARD OF O!ll:BCTORS OP

LLOYD'S AMBRICA,INC.

Tho undersigned, being all of the dlreotou of LLOYD'S AMBRICA,!NC., a New

York corporation (tho "Corpo•·nt!on"), pursuant to Section 708 of the New Vot·k lluslnoss

Coi'POI'atlon Law, hereby consent to and udo.pttho following resolutions:

WHllJnllAS, tho CQt·poratlon Mts as tho United States Representative of cet·taln 'Undotwrltot·s at !Aoyd's, London;

NOW, THli:REFORrr, DE lTi

. RllSOLVICD, that Potrlola J, Luboy,Asslstdt\1 Sec1~tary of the Corpot·atlon, Is hereby authorl:ed to execute and dollvdt· to tho Chl•f Plnonolat Offiocr of tho Slate of Plor!da tho Uniform Consent to Setv!ce or Pt'oooss on behalf ofcol'taln Undetwrltcrs at

· Lloyd's, London .

Dated as of Feb mary___, 20 II

Joseph P. Ounset

Hem·y N. Watkins

Pntrlok Talley

Being all of tho dlreotors of LLOYD'S AMERICA, INC,

IIIIURAIICERE~ OFFICE OF INSURANCE REGULATION · 2016-03-09 · WHEREFORE, the agreement between...

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