Reference guide
Insurance Glossary
Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.
Find an insurance term
Showing 24 of 28 matching terms
Terms beginning with L
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Landlord insurance
Home insurance - Property insurance for a rented dwelling that may cover the structure, landlord liability, and loss of rental income for covered losses.
- Also called: rental property insurance
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Lapse
Life insurance - A policy ending because required premium payments or other conditions were not met.
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Lapse protection rider
Life insurance - A rider intended to keep a life policy in force when specified premium or funding requirements are met.
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Layered insurance program
General insurance - A program dividing coverage into primary and successive excess layers, each attaching above a specified amount.
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Legal hazard
General insurance - An increase in loss frequency or severity resulting from legal, judicial, or litigation conditions.
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Liability coverage
Auto insurance - Coverage that may pay for injury or property damage the insured is legally responsible for causing to others.
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Liberalization clause
General insurance - A provision automatically extending a broader coverage change made by the insurer without an added premium in stated circumstances.
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License suspension
Auto insurance - A temporary loss of driving privileges imposed under state law, which can affect auto insurance availability and pricing.
- Also called: suspended license
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Life income option
Life insurance - A settlement choice that pays income for the recipient’s lifetime, with any survivor or period-certain feature governed by the option selected.
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Life insurance
Life insurance - A policy that may pay a death benefit to named beneficiaries when the insured person dies while coverage is in force.
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Life settlement
Life insurance - The sale of an existing life insurance policy to a third party for more than its surrender value but less than its death benefit.
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Lifetime limit
Health insurance - A cap on the total benefits a plan will pay over a person’s lifetime; federal rules restrict these limits for essential health benefits in many plans.
- Also called: lifetime dollar limit
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Limit
General insurance - The maximum amount an insurer may pay for a covered loss or service under a policy or plan.
- Also called: coverage limit
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Limited-pay whole life
Life insurance - Whole life insurance structured so scheduled premiums end after a specified period while coverage may remain in force.
- Also called: 10-pay life, 20-pay life
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Liquidation
Claims - A legal process that winds down an insolvent insurer and distributes available assets under regulatory and court supervision.
- Also called: insurer liquidation
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Liquor liability insurance
Business insurance - Coverage for certain claims arising from selling, serving, or furnishing alcoholic beverages.
- Also called: dram shop insurance
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Living benefits rider
Life insurance - A rider that may allow early access to part of a life policy’s death benefit after a qualifying illness or condition.
- Also called: accelerated death benefit rider
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Loan or lease payoff coverage
Auto insurance - An auto policy option that may pay part of the difference between a totaled vehicle’s value and its remaining loan or lease balance.
- Also called: loan/lease payoff
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Long-term care insurance
Life insurance - Insurance that may help pay for covered long-term services and support when a person needs help with daily activities or supervision.
- Also called: LTC insurance
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Loss adjustment expense
Claims - Costs an insurer incurs to investigate, adjust, defend, or settle claims, separate from the claim payment itself.
- Also called: LAE
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Loss assessment coverage
Home insurance - Coverage that may help a condo owner or association member pay certain shared assessments after a covered loss.
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Loss date
Claims - The date on which the event causing a claimed loss occurred.
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Loss of use
Home insurance - Coverage that may help with certain extra costs or lost rental value when covered property cannot be used after a covered loss.
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Loss payable clause
Business insurance - A policy provision directing payment for covered property loss to a named party with a financial interest.
- Also called: loss payee clause