insurer, has radically altered its Umbrella General Liability (UGL) cover.

The existing UGL rating plan, which was introduced in 1992, contains a retrospectively rated premium feature and full limit of $100 million.

This plan will remain available as an option to any policyholder.

In the company's most recent annual report, which analyses fiscal 1992, the existing UGL plan is described as one that provides "more flexibility to deal with unusual or unforeseen situations''.

The company suffered a severe liability loss in 1992, which produced an underwriting loss of $12.8 million. The net loss for 1992 was $16.2 million.

OCIL also reported net losses of $26.7 million for 1991, and $19.4 million for 1990.

OCIL will now offer a "fixed cost annual premium'' UGL product comparable to the insurance offered by the commercial markets, according to a report in Lloyd's List.

It will feature a retrospective premium commitment and the maximum limit will be $75 million.

New members can no longer buy shares in the company.

However, policyholders who are not shareholders will continue to receive copies of correspondence directed to the shareholders.

A representative of each company will be invited to attend the annual shareholders' meeting at the company's expense.

Subject to underwriter approval, retroactive cover will be available back to January 1, 1986.

Brokerage commission for members who joined after March 8, 1990, and who elected on entry to use a broker will no longer be fixed at five percent in the rating plan.