- Lapse: The termination of an
insurance policy due to non-payment of premium(s).
|
- Lapsed Policy: A policy terminated
for non-payment of premiums.
|
- Larceny: The unlawful taking
of personal property of another.
|
- Law of Large Numbers: A concept
that the greater number of exposures, the more closely actual
results approach the probable results expected from a number
of exposures.
|
- Legal Reserve: The minimum reserve
which an insurance company must keep to meet future claims
and obligations, as calculated under their state insurance
code.
|
- Level Premium: A premium which
remains unchanged throughout the life of a policy, example:
level term insurance and long term care insurance.
|
- Level Premium Life Insurance:
Life insurance for which the premium remains the same from
year to year.
|
- Liability: Any legally enforceable
act or obligation.
|
- Liability Insurance: Insurance
covering the legal liability of the insured resulting from
injuries to a third party to their body or damage to their
property.
|
- Liability Limits: The maximum
sums listed on a liability policy which an insurance company
provides protection.
|
- License and Permit Bond: A type
of surety bond guaranteeing that a person bonded will comply
with all laws and regulations that govern their activities.
|
- Life Annuity: A series of payments
which once begun, continue throughout the remaining lifetime
of the annuitant but not beyond.
|
- Life Expectancy: The average
number of years of life remaining for a group of persons
of a given age.
|
- Life Income: A life insurance
settlement option in which the policy proceeds are paid
during the lifetime of the beneficiary.
|
- Life Insurance: Insurance providing
payment of a specified amount on the insured's death, either
to his or her estate or to a designated beneficiary.
|
- Life Insurance in Force: The
total sum of the face amount, plus dividend additions, of
life insurance polices outstanding at a given time.
|
- Lifetime Disability Benefit:
A disability benefit to replace income lost by an insured
person as long as they are totally disabled, even for a
lifetime.
|
- Limited Policy: A contract which
covers only certain specified diseases or accidents.
|
- Liquidation: The dissolving
of a company by selling its assets for cash.
|
- Liquor Liability Insurance:
Provides protection for the owners of an establishment that
sells alcoholic beverages against liability arising out
of accidents caused by intoxicated customers.
|
- Living Benefits Rider: A rider
that allows insureds to add Long Term Care benefits to a
life insurance policy.
|
- Living Trust: A trust created
while the creator of the trust is living.
|
- Long-Term Care: The care of
broad-ranged maintenance and health services to the chronically
ill or disabled. Services may be provided on an inpatient
(rehabilitation facility, nursing home, mental hospital),
outpatient, or at-home basis. Most long term care premiums
are level.
|
- Long-Term Disability Insurance:
Insurance to provide a reasonable replacement of a portion
of an employee's earned income lost through serious illness
or injury during the normal work career.
|
- Loss: The reduction in the value
of an insured's property caused by a covered peril.
|
- Loss Control: Any actions intended
to reduce the frequency or severity of losses.
|
- Loss Payable Clause: A mean
of protecting a mortgagee's interest in property by directing
the insurer to make a loss payment to the mortgagee in the
event of a loss.
|
- Loss Prevention: A measure which
reduces the probability of a particular loss but does not
eliminate completely all possibility of that loss
|
- Loss Ratio: The ratio of claims
to premiums.
|
- Loss Reserve: An amount set
up as the estimated cost of a claim.
|
- Lump-Sum: Payment within one
taxable year of the entire balance payable to a beneficiary.
|
Back to the Glossary
|
