Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Lapse

Termination of an insurance policy due to failure to pay the premium.

Level Premium Insurance

Life insurance, the premium for which remains at the same level for the duration of the policy.

Liability Insurance

Insurance that pays and renders service on behalf of an insured for losses arising out of his responsibility, negligence, contractual assumptions, etc.

Liability Limits

The sum beyond which a liability insurance company does not protect the insured on a particular policy.

Life Insurance

An argument between an insurance company and the policyholder to pay a specified amount to a designated beneficiary on the insured's death.

Lifetime Policy

A policy guaranteed renewable or non-cancelable to age 65 (or sometimes later), or a policy paying disability benefits for life.

Limit of Liability

The maximum amount that an insurance company agrees to pay in case of loss.

Long-Term Disability

A disability that last longer than 12 weeks on average. It also describes a form of group disability insurance with benefits for more than the customary 12 to 26 weeks of disability, reaching five years on average.

Loss Ratio

The percentage of losses to premiums, usually losses incurred to premiums earned. The amount of the premium dollar returned to the insured as claims payments and other benefits.
c