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It is true that Lloyd's of London did not pay in the LXA case. My husband talked with Lloyds' rep at the Executive Board meeting of his own fraternity last week. The negotiations began at $18,000 and the settlement was $150,000 but IT WAS NOT PAID BY THE INSURANCE COMPANY for the reasons previously stated - the fraternity chapter was not covered because they had not adhered to the policies.
In answer to another post - yes, some fraternities do pass on the savings in insurance premiums to chapters who have had no incidents. Again, I am referring to my husband's fraternity. The chapters who have had incidents pay higher premiums and those who have had no incidents have their premiums reduced.
It is also my understand that Lloyds of London is going to have each member sign a statement that he understands that if he is violating the policy, he and his parents will be responsible if there is an incident and not the fraternity. And, yes, they do believe it will stand up in court.
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Old Sorority Broad
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