Labor-Management Relations Act of 1947 (Taft-Hartley Act): This law controls conditions under which an employer may pay
any money to a representative of employees.
Lapse: The termination or discontinuance of an insurance
policy due to non-payment of a premium.
Lapsed Policy: A policy terminated for non-payment
of premiums. The term is sometimes limited to a termination
occurring before the policy has a cash or other surrender
value.
Larceny-theft: The unlawful taking, carrying, leading
or riding away of another person's property.
Last Clear Chance Rule: Statutory modification of the
contributory negligence law allowing the claimant endangered
by his or her own negligence to recover damages from a defendant
if the defendant has a last clear chance to avoid the accident
but fails to do so.
Law of Large Numbers: Concept that the greater the
number of exposures, the more closely will actual results
approach the probable results expected from an infinite number
of exposures.
Legal Reserve: The minimum reserve which a company
must keep to meet future claims and obligations as they are
calculated under the state insurance code.
Level Commission Scale: A commission scale providing
for payment of commissions at the same rate every year the
policy is in force.
Level Premium: A premium which remains unchanged throughout
the life of a policy.
Liability: Any legally enforceable obligation.
Liability Insurance: Insurance covering the policyholder's
legal liability resulting from injuries to other persons or
damage to their property.
Liability Insurance: Provides protection for the insured
against loss arising out of legal liability to third parties.
Liability Limits: The stipulated sum or sums beyond
which an insurance company is not liable to protect the insured.
Liability Without Fault: Principle on which workers
compensation is based, holding the employer absolutely liable
for occupational injuries or disease suffered by workers,
regardless of who is at fault.
License and Permit Bond: Type of surety bond guaranteeing
that the person bonded will comply with all laws and regulations
that govern his or her activities.
Lifetime Disability Benefit: A benefit to help replace
income lost by an insured person as long as he/she is totally
disabled, even for a lifetime.
Lifetime Disability Benefit: Disability income payable
for the life of the insured as long as he is totally disabled.
Limited Policy: A contract which covers only certain
specified diseases or accidents.
Limited Policy: One that covers only specified accidents
or sicknesses.
Liquidation: Dissolving a company by selling its assets
for cash.
Liquor Liability Law: SeeDramshop Law.
Living Trust: A trust created while the creator of
the trust is living. Also known as an inter vivos trust.
Loading: The amount that must be added to the pure
premium for expenses, profit, and a margin for contingencies.
Long-Term Disability Income Insurance: Insurance issued
to an employer (group) or individual to provide a reasonable
replacement of a portion of an employee's earned income lost
through serious and prolonged illness or injury during the
normal work career. (See also Integration.)
Loss: The happening of the event for which insurance
pays.
Loss Avoidance: A risk management technique whereby
a situation or activity that may result in a loss for a firm
is avoided or abandoned.
Loss control: any conscious action (or decision not
to act) intended to reduce the frequency, severity, or unpredictability
of accidental losses.
Loss Expense - Allocated: Handling expenses, such as
legal or independent adjuster fees, paid by an insurance company
in settling a claim which can be definitely charged to that
particular claim.
Loss Expense - Unallocated: Salaries and other expenses
incurred in connection with the operation of a claim department
of an insurance carrier which cannot be charged to individual
claims.
Loss Payable Clause: Means 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: Any measure which reduces the probability
or frequency of a particular loss but does not eliminate completely
all possibility of that loss.
Loss Ratio: The percent which losses bear to premiums
for a given period.
Loss Ratio: The ratio of claims to premiums. It may
be calculated in several different ways, using paid premiums
or earned premiums, and using paid claims with or without
changes in claim reserves and with or without changes in active
life reserves.
Loss Reserve: The amount set up as the estimated cost
of a claim. (See IBNR Reserve)
Click on the letter of alphabet, which the word you are looking for begins with:
