Lapse: Termination of a policy due to the policy owner's failure to pay the premium within the grace period.
Leasehold Interest: Property insurance covering the loss suffered by a tenant due to termination of a lease because of damage to the leased premises by a covered loss
Lessee: The person to whom a lease is granted
Lessor: The person granting the lease
Liability: The legal obligation to pay a monetary award for injury or damage caused by one's negligent or statutorily prohibited action
Liberalization Clause: A provision within an insurance policy that broadens the coverage if the insurance company offers a broader coverage form within the first 45 days of coverage
Lien: An obligation that can be held by an individual who has an interest in a particular matter or property
Life Expectancy: The average number of years a person is expected to live based on a national average per age group, and other factors.
Life Insurance: Insurance coverage that pays out a set amount of money to specified beneficiaries upon the death of the individual who is insured.
Limit of Liability: The most an insurance company agrees to pay in the case of loss
Limited Pay Policy: A type of whole life insurance designed to let the policyholder pay higher premiums over a specific time period such as 10 or 20 years so that they won't have to pay any premiums for the rest of his or her life.
Longshore and Harbor Workers' Compensation Act: A federal law that provides workers' compensation benefits to employees of a vessel injured in maritime employment - usually in loading, unloading, repairing or building a vessel - but not applicable to crew members
Loss: The amount an insurance company pays for damages under the terms of a policy
Loss Adjustment Expense: The cost assessed to a particular claim for investigating and adjusting that claim
Loss Constant: A flat charge added to the premium of small workers' compensation policies to offset higher loss ratios
Loss Control: A technique that is put in place to reduce the possibility that a loss will occur or reduce the severity of those that do occur
Loss Payable Clause: An insurance clause that authorizes loss payments to a person or entity having an insurable interest in the covered property
Loss Ratio: Percentage of losses incurred against earned premiums
Loss Report: A form showing reported claims which provides information such as the date of occurrence, type of claim, amount paid and amount reserved for each loss
Loss Reserve: An estimated amount set aside for a particular claim that has not yet been paid
Lost Policy Release: A signed statement by the named when the insured wishes to cancel the policy, but has lost or mislaid the policy, which releases the insurance company from all liability or losses
Abandonment: As used in property insurance, prohibits the insured from abandoning damaged property to the insurance company for repair or disposal.
Accelerated Benefits Rider: An adjustment (rider) to a life insurance policy that allows for the early payment of some portion of the policy's face amount should the insured suffer from a terminal illness or injury.
Accidental Death Benefit Rider: An adjustment (rider) to a life insurance policy that provides for payment of an additional cash benefit when death occurs by accidental means. This amount depends on the value of the policy.
Accidental Death Insurance: An Insurance poicy that provides payment if the insured's death occurs as a results from an accident.
Accounts Receivable Coverage: Covers loss of sums owed to the insured by its customers that are uncollectible due to damage by an insured peril to accounts receivable records
Actual Cash Value (ACV): Cost to repair or replace damaged property with materials of like kind and quality, less depreciation
Additional Insured: A person or organization for whom insured status is arranged by endorsement
Advertising Injury: General liability coverage that insures against libel, slander, invasion of privacy, copyright infringement and misappropriation of advertising in connection with the insured's advertising of its goods or services
Agent: An authorized representative of an insurance company.
Aggregate: The maximum amount an insurance company will pay during the policy
All Risk Coverage: Property insurance covering loss arising from all causes of loss except those that are specifically excluded
Annually Renewable Term: Term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year.
Application: A form with the information needed for an insurance company to underwrite and rate a specific policy
Assignment Assignment: The transfer of ownership of a Life Insurance policy from one person to another.
Attained Age: Your current age. Your attained age is a factors life insurance companies use to determine premiums.
Audit: A verification of the financial records, usually payroll or receipts, of an organization to determine exposures and premiums
Automobile: A land motor vehicle, trailer or semi-trailer designed for travel on public roads, not including 'mobile equipment'