Legal
Liability -
Liability
imposed by law, as opposed to liability arising from an
agreement or contract.
Leased car -
An
auto rented under a long-term contract (lease). The leasing
company retains ownership of the auto and must be shown on
your insurance policy.
Liability -
Any
legally enforceable obligation or responsibility for the
injury or damage suffered by another person.
Lien -
A
claim, charge, or encumbrance on property as a security for
the payment of a debt.
Lien Holder -
The
person or organization that loaned the money to purchase the
vehicle. The lien holder has a financial interest in the car
up to the amount of money borrowed or still owed.
Limits -
The
maximum amount of protection purchased by the insured on each
separate coverage.
Limits of Liability -
The
amount specified in your policy up to which the insurance
company will protect you.
Loss -
Any
damages to the auto, including equipment, or other insured
property. Any measurable dollar cost of damage and/or injury
suffered by a person.
Loss of Use -
Rental
expenses paid to claimants.
Loss Control - All methods taken to reduce the
frequency and/or severity of losses including exposure
avoidance, loss prevention, loss reduction, segregation of
exposure units and noninsurance transfer of risk. A
combination of risk control techniques with risk financing
techniques forms the nucleus of a risk management program. The
use of appropriate insurance, avoidance of risk, loss control,
risk retention, self insuring, and other techniques that
minimize the risks of a business, individual, or organization.
Loss Ratio - The
ratio of incurred losses and loss-adjustment expenses to net
premiums earned. This ratio measures the company's underlying
profitability, or loss experience, on its total book of
business.
Loss Reserve -
The estimated liability, as it would appear in an insurer's
financial statement, for unpaid insurance claims or losses
that have occurred as of a given evaluation date. Usually
includes losses incurred but not reported (IBNR), losses due
but not yet paid, and amounts not yet due. For individual
claims, the loss reserve is the estimate of what will
ultimately be paid out on that claim.
Losses Incurred (Pure Losses) -
Net paid losses during the current year plus the change in
loss reserves since the prior year end.
LONG-TERM CARE INSURANCE - Coverage that, under
specified conditions, provides skilled nursing, intermediate
care, or custodial care for a patient (generally over age 65)
in a nursing facility or his or her residence following an
injury.
Limitations - Exceptions to coverage and
limitations of coverage as contained in an insurance contract.
For instance, a limit of liability would be one limitation on
an Automobile policy. Another example would be policies
written to cover only certain described automobiles, or, in
the case of Liability Insurance, certain described premises.
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