557 Lloyd's of London; notice no. 1996-02

Lloyd's of London; Notice No. 1996-02

[26 Pa.B. 1607]

   On March 12, 1996, the Pennsylvania Securities Commission issued a Summary Order (Order) to Cease and Desist, naming Lloyd's of London (Lloyd's) as Respondent.

   The Order requires that Lloyd's immediately cease and desist from offering and selling the Lloyd's Interests in the Commonwealth of Pennsylvania.

   In addition, the Order requires that Lloyd's immediately cease and desist from other activities including, but not limited to, the following:

   1.  Drawing down, or attempting to draw down, Letters of Credit established by a Pennsylvania Lloyd's Member payable to, or on behalf of, Lloyd's;

   2.  Drawing down or seizing assets of funds held in reserve for, or on behalf of, a Pennsylvania Lloyd's Member;

   3.  Instituting, or attempting to institute, any proceeding in the United States or Commonwealth of Pennsylvania to reduce to a judgment any debt against a Pennsylvania Lloyd's Member; and

   4.  Collecting, or attempting to collect, any debt, judgment or cash call demand or making any cash call demand against a Pennsylvania Lloyd's Member.

   Unlike legal actions instituted against Lloyd's by other states, the Pennsylvania Order does not attempt to freeze the assets in the Lloyd's Trust Fund. Such Trust Fund remains available to pay claims at this time.

   Persons who have any questions concerning this notice should contact Steve Johnson, Director of the Bureau of Examinations, Insurance Department, at [phone], or Scott Lane, Assistant Director, Division of Enforcement & Litigation, Pennsylvania Securities Commission, at [phone].

LINDA S. KAISER,   
Insurance Commissioner

[Pa.B. Doc. No. 96-557. Filed for public inspection April 5, 1996, 9:00 a.m.]