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Term Definition
L-SHARE VARIABLE ANNUITIES A form of variable annuity contract usually with short surrender periods and higher mortality and expense risk charges.
LADDERING A technique that consists of staggering the maturity dates and the mix of different types of bonds.
LAE loss adjustment expense
LASH lighter aboard ship
LAW OF LARGE NUMBERS The theory of probability on which the business of insurance is based. Simply put, this mathematical premise says that the larger the group of units insured, such as sport-utility vehicles, the more accurate the predictions of loss will be.
LCF loss conversion factor
LDF loss development factor
LDW limited damage waiver; loss damage waiver
LEA Loss Executives Association
LEED The Leadership in Energy and Environmental Design
LEPC Local Emergency Planning Committee
Lessor's Risk Only

Lessor's Risk Only (LRO) provides liability and property coverage for building owners who lease out their entire building or occupy less than 75% of the building and lease out the rest. 

LHWCA Longshore and Harbor Workers Compensation Act
LIAA Life Insurance Association of America
LIABILITY INSURANCE Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.
LIAMA Life Insurance Agency Management Association
LIFE INSURANCE See Ordinary life insurance; Term insurance; Variable life insurance; Whole life insurance
LIFO last in, first out
LIMITS Maximum amount of insurance that can be paid for a covered loss.
LIMRA Life Insurance Marketing & Research Association
LINE Type or kind of insurance, such as personal lines.

Enables the state insurance department as liquidator or its appointed deputy to wind up the insurance company’s affairs by selling its assets and settling claims upon those assets. After receiving the liquidation order, the liquidator notifies insurance departments in other states and state guaranty funds of the liquidation proceedings. Such insurance company liquidations are not subject to the Federal Bankruptcy Code but to each state’s liquidation statutes.

LIQUIDITY The ability and speed with which a security can be converted into cash.
LIQUOR LIABILITY Coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.
LIRB Liability Insurance Research Bureau
LLC limited liability company
LLOYDS Corporation formed to market services of a group of underwriters. Does not issue insurance policies or provide insurance protection. Insurance is written by individual underwriters, with each assuming a part of every risk. Has no connection to Lloyd?s of

A marketplace where underwriting syndicates, or mini-insurers, gather to sell insurance policies and reinsurance. Each syndicate is managed by an underwriter who decides whether or not to accept the risk. The Lloyds market is a major player in the internA marketplace where underwriting syndicates, or mini-insurers, gather to sell insurance policies and reinsurance. Each syndicate is managed by an underwriter who decides whether or not to accept the risk. The Lloyd’s market is a major player in the international reinsurance market as well as a primary market for marine insurance and large risks. Originally, Lloyd’s was a London coffee house in the 1600s patronized by shipowners who insured each other’s hulls and cargoes. As Lloyd’s developed, wealthy individuals, called “Names,” placed their personal assets behind insurance risks as a business venture. Increasingly since the 1990s, most of the capital comes from corporations.

LMU loss mitigation underwriting
LOC letter of credit

Long-term care (LTC) insurance pays for services to help individuals who are unable to perform certain activities of daily living without assistance, or require supervision due to a cognitive impairment such as Alzheimers disease. LTC is available as ind

LOSS A reduction in the quality or value of a property, or a legal liability.
LOSS ADJUSTMENT EXPENSES The sum insurers pay for investigating and settling insurance claims, including the cost of defending a lawsuit in court.
LOSS COSTS The portion of an insurance rate used to cover claims and the costs of adjusting claims. Insurance companies typically determine their rates by estimating their future loss costs and adding a provision for expenses, profit, and contingencies.
LOSS OF USE A provision in homeowners and renters insurance policies that reimburses policyholders for any extra living expenses due to having to live elsewhere while their home is being restored following a disaster.
LOSS RATIO Percentage of each premium dollar an insurer spends on claims.

The company’s best estimate of what it will pay for claims, which is periodically readjusted. They represent a liability on the insurer’s balance sheet.

LPG liquid petroleum gas
LPRT Leading Producers Round Table
LPSO Lloyd's Policy Signing Office
LPT loss portfolio transfer

Lessor's Risk Only 

LTA lost time accident; long term agreement
LTD long-term disability
LTL less than truckload
LUMP limits under multiple policy years
LUTC Life Underwriter Training Council

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