Insurance Terms - L
last in, first out (LIFO) - (in the accounting area, a method of keeping inventory records for accounting purposes, where the cost of the most recent items purchased are assumed to be the costs of the inventory items currently used in the manufacturing or sales process)
Leadership in Energy and Environmental Design (LEED) -
Leading Producers Round Table (LPRT) -
Legal Principles Claim Specialist (LPCS) - (claims law specialist designation offered by the American Educational Institute (AEI) which requires completion of a legal principles self-study program)
less than truckload (LTL) - (a term used for a motor carrier that typically consolidates loads such that its cargo at any one time comes from multiple shippers)
lethal concentration (LC5) - (median level concentration - measure of toxicity - tells how much of a substance is needed to kill half of a group of experimental organisms in a given time)
lethal dose 50 (LD50) - (the dose of a toxicant that will kill 50 percent of the test organisms within a designated period of time)
letter of credit (LOC) - (a legal commitment issued by a bank or other financial institution, in which the bank agrees to pay, or honor, drafts issued against the letter of credit - essentially a form of loan)
Leveraged Buyout (LBO) - (takeover of a company using borrowed funds - most often, the target company's assets serve as security for the loans taken out by the acquiring firm or entity, which repays the loans out of the cash flows of the acquired company)
Liability Insurance Research Bureau (LIRB) -
Liability Risk Retention Act of 1986 (LRRA) - (federal U.S. legislation authorizing the formation of risk retention and purchasing groups that can be used to write all liability coverages, except workers compensation and personal risk liability, but must be located onshore and cannot include any ownership interest other than that of their insureds)
Life Communicators Association (LCA) -
life insurance (LI) -
Life Insurance Agency Management Association (LIAMA) -
Life Insurance Association of America (LIAA) -
Life Insurance Marketing and Research Association (LIMRA) - (organization that conducts research on distribution systems, seeking solutions to the problems of administering the agency costs of a life insurer, for the life and health insurance products on behalf of its member companies)
Life Insurers Conference (LIC) - (organization of home service debit life insurance (industrial life insurance - small policies) companies and combination companies)
Life Office Management Association (LOMA) - (organization that develops and administers educational materials and examinations for the life insurance industry)
Life Underwriter Political Action Committee (LUPAC) - (affiliate of the National Association of Life Underwriters (NALU) that supports legislators in the interests of life insurance agents)
Life Underwriting Training Council (LUTC) - (organization that develops and administers educational materials and examinations for life insurance agents)
lighter aboard ship (LASH) -
limited damage waiver (LDW) -
Limited Liability Company (LLC) - (a form of business structure which combines features of a corporation with those of a partnership - provides the liability protections granted to a corporation, while being treated as a partnership, in terms of tax liability)
limits under multiple policy (years) (LUMP) - (a single aggregate limit which remains in effect for multiple years as opposed to a series of separate policy limits, applicable to single years, the traditional approach - the traditional approach usually involves low-frequency, but high-potential severity exposures, such as pollution liability)
liquid petroleum gas (LPG) - (form of petroleum product which has been converted to very cold, liquid form, which can be transported in bulk)
Lloyd's Policy Signing Office (LPSO) -
Local Area Network (LAN) - (system composed of personal computers linked by a file server)
Local Emergency Planning Committee (LEPC) -
Local Government Environmental Assistance Network (LGEAN) - (clearinghouse of information and forum for ideas concerning the environment, which serves as a resource on environmental issues for local governments - topics covered include drinking water systems, pesticide management, solid waste management, wastewater treatment, and water resources management)
London Insurance Market Network (LIMNET) - (computer system established by London trade associations for processing insurance policies)
London Insurance and Reinsurance Market Association (LIRMA) - (association that represents reinsurance companies as well as insurance companies that do not market marine insurance)
long-term agreement (LTA) -
long-term care (LTC) - (day-to-day care that a patient (generally older than 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age)
long-term care insurance (LTC) - (a health insurance policy that provides daily benefits when the insured is confined to a nursing home)
long-term disability (LTD) - (illness or disability, usually considered long-term, if it lasts 30 days or longer)
Longshore and Harbor Workers' Compensation Act of 1927 (LHWCA) - (federal law that provides no-fault workers compensation benefits to employees (other than masters or crew members of a vessel) injured in maritime employment - generally covers those involved in loading, unloading, repairing, or building a vessel)
loss adjustment expense (LAE) - (the cost of investigating and adjusting losses)
loss conversion factor (LCF) - (a factor used in the retrospective rating formula that provides a charge to cover unallocated claims and the cost of the insurer's claim services)
loss damage waiver (LDW) - (an agreement with an auto rental company in which the renter is released from liability for physical damage to the vehicle in exchange for a fee, subject to the terms of the rental agreement or a state statute, if one exists - an LDW is not considered insurance)
loss development factor (LDF) - (formula component used to calculate the ultimate payout expected based on current claims and projections of what unreported claims will add to the total payout for a claim or group of claims)
Loss Executives Association (LEA) -
loss mitigation underwriting (LMU) - (the process of providing insurance coverage for existing litigation, or for litigation that is imminent - also known as retroactive insurance or back-dated liability insurance, which is insurance purchased to cover a loss after it has occurred)
loss portfolio transfer (LPT) - (a financial reinsurance transaction in which loss obligations that are already incurred and will ultimately be paid are ceded to a reinsurer)
lost time accident (LTA) -
low speed vehicle (LSV) - (a four-wheeled motor vehicle, other than a truck type, having a top speed of more than 20 miles per hour but not more than 25 miles per hour on paved surfaces)