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.