Law of Large Numbers ...
A principle governing the development of statistics that the greater quantity of examples used will increase the reliability of the findings.
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Legal Purpose ...
One of the three components of a legal Contract that maintains it is only valid if it is not illegal, immoral or against public good.
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Levy ...
To impose or collect by legal authority.
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Liabilities ...
Obligations of a person or company that arise out of a course of action, the custody of ownership and/or the conduct of business.
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Liability Insurance ...
Insurance that provides coverage for an Insured against financial loss from claims of Liability.
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Liability Limit ...
The amount of coverage stipulated in a policy that an Insurance Company is not liable to exceed.
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Liberalization Condition ...
A condition that makes a provision for broadening coverage under a policy form or endorsement without the assessment of additional premium by law.
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License ...
Certification issued by a state department which attests that a person or company is qualified to do business in the state.
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Life Insurance ...
Insurance that protects the beneficiary of the Insured against financial loss arising out of the premature death of the Insured by paying a stipulated sum to a beneficiary upon the death of the Insured.
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Limit of Coverage ...
The maximum dollar amount that an Insurance Company agrees to pay for a loss on covered perils. Also known as, Limit of Insurance and Limit of Liability. (See also, Policy Limit.)
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Line ...
A type or category of insurance. For example: Homeowners, Farmowners, Mobilehomeowners and Commercial are traditional lines of Property insurance.
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Litigation ...
The legal processes of a lawsuit.
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Lloyds Association ...
An association of individuals or groups of individuals that function as a syndicate which makes determinations as to accepting or rejecting a risk, and the amount of coverage if accepted.
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Loss ...
The value of property diminished as a result of a peril.
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Loss Control Representative ...
People that perform on-site inspections of losses and prepare written loss reports to document their findings.
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Loss Cost ...
The factor used to compute insurance rates which determines how much an Insurance Company needs to collect on premiums in order to cover anticipated losses.
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Loss Expense - Unallocated ...
Claims department expenses incurred from investigating and settling claims.
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Loss Exposure ...
The amount of possibility that a loss may occur.
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Loss of Income ...
Commercial Property Coverage that insures against the inability to conduct business in an insured structure because of damage sustained from an insured peril.
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Loss of Use ...
Coverage that insures against the inability to make use of an insured structure because of damage sustained by an insured peril. (See also, Additional Living Expenses.)
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Loss Payment ...
The money paid to the Insured to indemnify the loss.
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Loss Payable Condition ...
A condition found in Property insurance policies that specifies the rights and responsibilities of the property mortgagee. (See also, Mortgage Condition.)
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Loss Ratio ...
Determined by dividing incurred losses by earned premium.
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Loss Reserve ...
An estimate of the total loss payment that will be paid on a claim.
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