Lloyd's Seeks Change To Alien Re Rule Thechairman of Lloyd's of London, speaking in Washington, D.C., calledfor an end to a rule that requires foreign reinsurers to fund 100percent of their gross liabilities in the United States.

Under the current rule, Lloyd's, as an “alien reinsurer,” musthold collateral, using either letters of credit or cash innon-working trust funds, for the full amount of its grossliabilities in the United States. It's an arrangement that Lloyd'schairman finds “unfair, unreasonable and unjust.”

Domestic reinsurers are not held to the same rule, and they canfund their liabilities on a net basis, taking credit forreinsurance purchased.

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