LIABILITY INSURANCE
Insurance coverage that offers protection against claims alleging that a property owner’s negligence or inappropriate action resulted in bodily injury or property damage to another party.
LIFE AND HEALTH GUARANTEE ASSOCIATION
An organization that operates under the supervision of a state insurance commissioner to protect policy owners, insured's, beneficiaries, and specified others against losses that result from the financial impairment or insolvency of a life insurer that operates in the state.
LIMNIC ERUPTION
A sudden release of asphyxiating or inflammable gas from a lake.
LONG TAIL LIABILITY
one where an injury or other harm takes time to become known and a claim may be separated from the circumstances that caused it by as many as 25 years or more.
LOSS
The dollar amount associated with a claim.
LOSS ADJUSTMENT EXPENSE
cost involved in an insurance company’s adjustment of losses under a policy.
LOSS OF USE INSURANCE
Compensation for loss caused because the policyholder has lost the use of his property.
LOSS PAYABLE CLAUSE
A policy condition that enables an insured to direct the company to pay any loss that may be due to a third party.
LOSS RATIO
relationship of incurred losses plus loss adjustment expense to earned premiums.
MATERIAL MISREPRESENTATION
A misrepresentation that would effect the insurance company’s evaluation of a proposed insured.