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L-SHARE VARIABLE ANNUITIES.
1
LADDERING.
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LAW OF LARGE NUMBERS.
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LIABILITY INSURANCE.
1
LIFE INSURANCE.
2
LIMITS.
2
LINE.
2
LIQUIDATION.
2
LIQUIDITY.
2
LIQUOR LIABILITY.
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LLOYD'S OF LONDON.
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LLOYDS.
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LONG-TERM CARE INSURANCE.
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LOSS.
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LOSS ADJUSTMENT EXPENSES.
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LOSS COSTS.
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LOSS OF USE.
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LOSS RATIO.
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LOSS RESERVES.
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A form of
variable annuity contract usually with short surrender periods and
higher mortality and expense risk charges.
A technique that
consists of staggering the maturity dates and the mix of different
types of bonds.
The theory of
probability on which the business of insurance is based. Simply put,
this mathematical premise says that the larger the group of units
insured, such as sport-utility vehicles, the more accurate the
predictions of loss will be.
Insurance for
what the policyholder is legally obligated to pay because of bodily
injury or property damage caused to another person.
See Ordinary life
insurance; Term insurance; Variable life insurance; Whole life
insurance
Maximum amount of
insurance that can be paid for a covered loss.
Type or kind of
insurance, such as personal lines.
Enables the state
insurance department as liquidator or its appointed deputy to wind
up the insurance company’s affairs by selling its assets and
settling claims upon those assets. After receiving the liquidation
order, the liquidator notifies insurance departments in other states
and state guaranty funds of the liquidation proceedings. Such
insurance company liquidations are not subject to the Federal
Bankruptcy Code but to each state’s liquidation statutes.
The ability and
speed with which a security can be converted into cash.
Coverage for
bodily injury or property damage caused by an intoxicated person who
was served liquor by the policyholder.
A marketplace
where underwriting syndicates, or mini-insurers, gather to sell
insurance policies and reinsurance. Each syndicate is managed by an
underwriter who decides whether or not to accept the risk. The
Lloyd’s market is a major player in the international reinsurance
market as well as a primary market for marine insurance and large
risks. Originally, Lloyd’s was a London coffee house in the 1600s
patronized by shipowners who insured each other’s hulls and cargoes.
As Lloyd’s developed, wealthy individuals, called “Names,” placed
their personal assets behind insurance risks as a business venture.
Increasingly since the 1990s, most of the capital comes from
corporations.
Corporation
formed to market services of a group of underwriters. Does not issue
insurance policies or provide insurance protection. Insurance is
written by individual underwriters, with each assuming a part of
every risk. Has no connection to Lloyd’s of London, and is found
primarily in Texas.
Coverage that,
under specified conditions, provides skilled nursing, intermediate
care, or custodial care for a patient (generally over age 65) in a
nursing facility or his or her residence.
A reduction in
the quality or value of a property, or a legal liability.
The sum insurers
pay for investigating and settling insurance claims, including the
cost of defending a lawsuit in court.
The portion of an
insurance rate used to cover claims and the costs of adjusting
claims. Insurance companies typically determine their rates by
estimating their future loss costs and adding a provision for
expenses, profit, and contingencies.
A provision in
homeowners and renters insurance policies that reimburses
policyholders for any extra living expenses due to having to live
elsewhere while their home is being restored following a disaster.
Percentage of
each premium dollar an insurer spends on claims.
The company’s
best estimate of what it will pay for claims, which is periodically
readjusted. They represent a liability on the insurer’s balance
sheet.
Glossary of Insurance Terms
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