Glossary of Insurance Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #
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Lapse in Coverage / Policy Lapse: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
Lapsed Policy: A policy terminated because of failure to pay the premium(s).
Lender/Lessor: Your lender is the institution to which you make car payments. Your lessor is the institution to which you make your lease payments.
Level Premium Insurance: A policy in which the payments remain the same over the life of the policy.
Liability Insurance: Insurance that pays when you are liable for injuries to other Persons or damage to their property.
Liability: Any legally enforceable obligation.
Lifetime Maximum: Is the total dollar amount the plan will pay for all types of medical expenses, for all benefit periods, while the insured person is alive and covered under the plan.
Limitations: The conditions or circumstances for which benefits are not payable or are limited.
Limited Payment Life Insurance: Whole life insurance; the policyholder pays premiums for a specified number of years or until his death.
Limits: The maximum amount of benefits the insurance company agrees to pay on a loss.
Loading: Administration costs you pay when buying life insurance.
Loan: Borrowing against your policy’s accumulated cash value. The borrowed amount is deducted from the death benefit until you have repaid it.
Loss Payee/Lien holder: A person or entity with a legally secured insurable interest in another’s property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.
Loss Ratio: The dollar amount an insurer pays in claims compared to the amount it collects in premiums.
Loss: The basis for a claim under an insurance policy.
Low Value Policy: A life insurance policy with a high premium and small death benefit.
