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Lapse
A policy becoming invalid because of failure to pay the premium on time.

Lease hold Interest Coverage Form
A form which belongs to the Commercial Property Coverage part of the Commercial Package policy. It covers a tenant for certain losses following damage to the premises from a covered peril such as tenant's loss of a favorable lease or loss of remaining value of improvements or betterments made by a tenant.

Legal Liability
Rules of law indicates that a person must pay for damages done to another.

Legal Liability Coverage Form
This form belongs to the Commercial Property Coverage part of the Commercial Package policy covers the insured for negligently damaging property owned by others but in the insured's care custody or control.

Lessee
The person to whom a lease is granted, commonly called the tenant.

Lessor
The person granting a lease, commonly called the landlord.

Legal Insurance
Prepaid legal insurance coverage plan sold on a group basis.

Liability (Auto)
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property as a result of an auto accident.

Liability Insurance
Insures the individual for financial losses.which arise out of the person's responsibilities to others imposed by law or contract.

Liability Limits
The amount (limits) of protection the insured receives in a liability insurance policy.

Liberalization Clause
A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such roadened coverage.

License And Permit Bonds
A category of Surety bond which covers a wide variety of occupations and operations and which are often required as a condition of doing business.

Life Insurance
A policy that will pay a specified sum to beneficiaries upon the death of the insured.

Limit
Maximum amount a policy will pay either overall or under a particular coverage.

Limits Of Liability
The maximum amount of insurance the insurance company will pay for a particular loss or for a loss during a period of time.

Line
1) A particular line of insurance. 2) Various types of insurance written for a property owner.
3) The amount of insurance paid under a liability policy.

Liquor Liability Coverage
This form belongs to the Commercial General Liability coverage part of the Commercial Package policy. It covers liquor liability which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, selling or furnishing alcoholic beverages.

Litigation Bond
See Court bond.

Lloyd's
Generally refers to Lloyd's of London, England, an institution within which individual underwriters accept or reject the risks offered to them.  The Lloyd's Corp. provides the support facility for their activities.

Lloyds Organization
These organizations are voluntary unincorporated associations of individuals.  Each individual assumes a specified portion of the liability under each policy issued.  The underwriters operate through a common attorney-in-fact appointed for this purpose by the underwriters.  The laws of most states contain some provisions governing the formation and operation of such organizations, but these laws don't generally provide as strict a supervision and control as the laws dealing with incorporated stock and mutual insurance companies.

Loan Value
The amount which can be borrowed at a specified rate of interest from the issuing company by the policyholder using the value of the policy as collateral. In the event the policyholder dies with the debt partially or fully unpaid, then the amount borrowed plus any interest is deducted from the amount payable.

Loss Adjustment Expenses
Expenses incurred to investigate and settle losses.

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 Generally
The reduction in value of the insured's property. 2) The amount sought in his claim. 3) The amount paid under a liability policy.

Loss Of Use Coverage
Under the Homeowners contract covers the insured's increased cost of living after loss and rental.value of any portion of the dwelling which is rented out.

Loss Ratio
The percentage of losses in relation to premiums. For example, a 60% loss ratio would mean that there were 60 cents in losses for each $1.00 of premium.

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 and Loss-Adjust Expenses
This represents the total reserves for unpaid losses and loss-adjustment expenses, including reserves for any incurred but not reported losses, and supplemental reserves established by the company.  It is the total for all lines of business and all accident years.

Losses Incurred
The total losses, paid or reserved, sustained by the insurer during a particular period.

Lost Instrument Bonds
A category of Surety bonds issued in situations where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder the issuer of the instrument would be reimbursed.

Lost Policy Release
A statement signed by the insured releasing the insurance company from all liability under a lost or mislaid contract of insurance.