Insurance Glossary
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There are 13 names in this directory beginning with the letter L.
Lapsed Policy
A policy which has been allowed to expire because of non payment of premiums.

Leading underwriter
The insurer who determines the terms and rating applicable to large insurance placements involving participation by several insurers. The lead usually takes the largest share of a risk, with other insurers following the lead.

Letter of Credit
A financial instrument obtained from a bank guaranteeing the availability of funds to be collected in the future under a reinsurance contract. Often required in overseas markets where currency restrictions or concerns about reinsurer solvency exist.

Liability Insurance
A form of general insurance that provides cover in regard to the insured's legal obligation for loss or damage to another person.

Limited liability companies
Companies that are owned by their shareholders. The liability of its shareholders is limited to the fully paid up value of the shares.

A line is the amount an insurer retains on a risk under a proportional treaty. It is also used to refer to the amount a reinsurer will accept on a piece of business.

Local insurer
Transacts business only within the country where it is registered.

London Market
This refers to the international insurance and reinsurance business written in London. It consists of the following segments: international reinsurance; marine and aviation; US excess and surplus lines business; and direct overseas business written in the UK

Long tail business
A term used to describe a risk or class of business that may have claims notified or settled long after risks have expired. The financial outcome for these classes will not be known with certainty for several years. Liability insurance is long tail.

Generally refers to the amount of reduction in the value of an insured's property caused by an insured peril. In an insurance sense it usually does not mean "misplacing" an item.

Loss history
The history of losses suffered by an insured or intending insured. This includes losses which were not covered by insurance.

Loss Ratio
The percentage that incurred losses bear to earned premiums.

Loss Reserve
An amount set aside to provide for outstanding claims.