Lapsed Policy :: A policy terminated for non-payment of premiums.

 

Larceny :: The unlawful taking, carrying loading away of another person’s property.

 

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.

 

Liability :: Any legally enforceable obligation.

 

Liability Insurance :: Portion of an insurer’s balance sheet which denotes legal obligations of the company, including anticipated future payments of losses covered under policies issued.

 

Liability  :: A duty or contract to fulfill an obligation to another person or organization. 

 

Lien :: The right to possession of property until such time that an outstanding liability has been repaid.

 

Lloyd’s of London :: Incorporated association of insurers that specializes in marine insurance. Formally, established by Act of Parliament in 1871, the Corporation developed from a group of 17th- century underwriters who met at Edward Lloyd’s coffee house in London.

 

Loading :: The amount that must be added to the pure premium for expenses, profit and a margin for contingencies.

 

Log Term Care Insurance :: Coverage that, under specified conditions, provides skilled nursing, inter-mediate care, or custodial care for a patient in a nursing facility or his or her residence following an injury

 

Loss :: The occurrence of an event for which insurance pays.

 

Loss avoidance :: A risk management technique whereby a situation or activity may result in a loss for a firm is avoided or abandoned.

 

Loss control :: Any conscious action intended to reduce the frequency, severity, or unpredictability of accident loss.

 

Loss Exposure :: A potential loss that may be associated with a specific type of risk.

 

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 :: In insurance , the value of all claims expressed as a percentage of total premium for a period. The figure is used as a guide to the profitability of the business when considering rates.

 

Loss Reserve :: The amount set up as the estimated cost of a claim.

 

Loss-of- Profits Insurance :: Type of insurance that provides cover against loss of trade and profits resulting from some disaster such as a fire. In the latter case the policy would typically pay a business the equivalent of the expected net profits lost while repair work and restocking were carried out, plus salaries, rates and rent due in that period.