Insurance Terms: L
by Anna Glendenning | More from this Blogger
27 Jul 2007 09:33 AM
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- Lapse is the termination of an insurance policy because of nonpayment of the renewal premium by the end of the grace period.
- Law Of Large Numbers is the basis of the Business of Insurance. The theory of probability based on the premise that the larger the group of units or items that are insured, for example Dodge Minivans, the more Minivans insured the more accurate the predictions of loss will be.
- Legal Liability is liability imposed by the law. legal liability is different than the kind of liability that might result from an agreement or contract--legal liability is spelled out in the law.
- Leased Vehicle is basically a long term contract (lease) for a rental car. The leasing company maintains full ownership of the auto and the lease company will require the customer to list them as a loss payee or lien holder on the auto insurance policy. In some cases, a lease company will require certain minimum levels of insurance coverage or deductibles.
- Liability is the cause of damage to someones property and/or bodily injury to another person caused as a result of negligence of a person.
- Liability Insurance covers a policyholder when they are legally obligated to pay another due to bodily injury and/or property damage caused to another person. Liability insurance may provide coverage for individuals or businesses.
- Lien is a bill, claim, charge, or encumbrance placed on property as a form of security held for payment of a debt.
- Lien holder is a person, company, or organization with a financial interest (invested money) in the personal property or security a person has used in order to borrowed money. The lien holder claims up to the amount of money loaned or still owed on the property if a total loss occurs. The lien holder is generally paid first.
- Life insurance is an insurance contract with an insurance company that makes a promise to pay a certain and specific death benefit when or if the person insured on the life insurance policy dies. There are many types of life insurance policies. The primary purpose of any life insurance policy should be to protect against economic loss in the event of death.
- Limits generally limits are listed as a maximum amount of insurance that will be paid for a covered loss. The limits are the maximum amount of insurance protection purchased by the policyholder for each specific policy and coverage.
- Limits of Liability is the specific amount listed on your insurance policy to protect liability exposures. The most the insurance company will pay for a liability claim made against the policyholder.
- Line is the insurance term used to describe the type or kind of insurance product someone needs or has. Two primary kinds of insurance lines are "Personal Lines" and "Life and Health" lines of insurance.
- Liquor Liability is liability insurance coverage for claims of bodily injury and/or property damage caused by someone who was served liquor (drunk driving) by the insurance policyholder.
- Long-Term Care Insurance (LTC) pays for the services to assist qualified insured policyholders with certain activities of daily living. LTC is available as individual insurance policy or may be offered with an employer supported plan.
- Long-Term Disability Income Insurance is a type of disability income insurance providing disability income benefits after short-term disability income benefits have terminated. Long-Term Disability Income Insurance generally continues until; the date an insured person returns to work, dies, or when the insured person is eligible for pension benefits.
- Loss A loss is defined in insurance as a reduction in the quality and/or value of property, and/or a legal liability claim.
- Loss of Use is a provision in most Homeowners and Renters insurance policies that offers the policyholder reimbursement for extra living expenses cause to needing to live some place else while and insured home is under restoration following a disaster.
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Glossary of Insurance Terms:
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Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork.
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