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.
