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Benson Kearley IFG helps you understand...

The world of insurance can be quite hard to understand. We’re here to provide you with terms you can understand, give you advice and offer our help—all right at your fingertips.

Insurance Glossary

L

LAPSE

Termination of a policy because of failure to pay the premium.

LAY-UP

Suspension of some coverage while a motor vehicle or other belongings are in storage.

LEASEHOLD IMPROVEMENTS

Physical improvements beyond simple maintenance or repairs that increase the value of a property.

LEGAL LIABILITY

Liability imposed by law to pay for harm (material damage or physical injuries) done to others.

LESSEE

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

LESSOR, LANDLORD

Corporate or private individual who leases property.

LIABILITY INSURANCE

Insurance which warrants the insured against the monetary consequences of the obligation to indemnify the third party as a result of an act of negligence.

LIABILITY LIMITS

The sum or sums beyond which a liability insurance company does not protect the insured on a particular policy.

LIBEL

A written statement about someone that is personally injurious to that individual.

LIFO

The last-in, first-out accounting method of valuing a company's inventory. It assumes that the most recent additions to inventory are the first ones to be sold and values them at current market prices.

LIMITED LIABILITY

The nature of stocks restricts the amount of money an investor may lose to the amount they have invested in case of company bankruptcy. Shareholders are not liable for the debts of the corporation.

LIMITS

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

LIQUIDITY

The ease with which an instrument may be bought or sold at a price that is close to its fair market price.

LIQUIDITY RISK

The risk that an individual or firm will meet in raising funds to satisfy commitments associated with financial instruments. It may be caused by an inability to sell a financial asset quickly and close enough to its actual value.

LOAD

Commissions charged to holders of mutual fund units.

LOSS

Generally refers to: the amount of reduction in the value of an insured's property caused by an insured peril, the amount sought through an insured's claim, or the amount paid on behalf of an insured under an insurance contract.

LOSS FREQUENCY

Number of consecutive losses.

LOSS OF USE

Inability to use property that has destroyed or damaged by an insured peril.

LOSS RATIO

Losses incurred expressed as a percentage of premiums. Also referred to as Claims ratio.

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