l l l

 

Lapse

 
The termination of an insurance policy because premiums were not paid when they came due.


LAST ACCOUNTING DATE (Table: GRP_POL)

 
The date the last accounting transaction was applied to this policy.


LAST MAINTENANCE DATE (Table: GRP_POL)

 
The date upon which the policy was last updated.


LAST MAINTENANCE TERMINAL (Table: GRP_POL)

 
The terminal upon which the policy was last updated.


LAST MAINTENANCE TIME (Table: GRP_POL)

 
The time of the last update on this policy.


LAST MAINTENANCE USER ID (Table: GRP_POL)

 
The operator responsible for the last update of the policy.


LAST MNT DT (Table: POST_VOUCHER_BILL)

 
Last Maintained Date


LAST MNT OP (Table: POST_VOUCHER_BILL)

 
Last Maintained Operator


LAST MNT TM (Table: POST_VOUCHER_BILL)

 
Last Maintained Time


LAST STATEMENT DATE (Table: GRP_POL)

 
Last Statement Date


Late retirement age

 
Retirement after the normal retirement age (usually age 65) contained in a pension plan. In the United States, a qualified pension plan generally cannot force a plan participant to retire at the normal retirement age or any other age and generally cannot stop accruing pension benefits for a plan participant who elects to work beyond the normal retirement age. See also early retirement age and normal retirement age.


Late-remittance offer

 
A means of encouraging reinstatement of lapsed insurance policies. A late-remittance offer specifies that the company will accept an overdue premium after the grace period ends and will reinstate the policy without requiring the policy owner to complete a reinstatement application or submit evidence of insurability. Also called a late-payment offer.


Law of large numbers

 
The theory of probability which specifies that the greater the number of observations made of a particular event, the more likely it will be that the observed results will approximate the results anticipated by the mathematics of probability.


LEAVE NO (Table: GRP_POL)

 
This holds the number of leavers. The information is held by month.


LEDGER CDS (Table: GENACCTRN)

 
The ledger codes filled out in the NOMLDG OS record ready for export to an external ledger by the Daily Nominal Ledger run (LFBNL)


Legal actions provision

 
In an individual health insurance policy, a provision that limits the period during which a claimant may sue the insurer to collect a disputed claim amount and which specifies that no suit may be brought against an insurer until a specified period after a claim is filed.


Legal reserve

 
See statutory reserve. See also reserve for a list of many different kinds of reserves.


LETTER TYPE (Table: LETTERS_SENT)

 
Letter Type Generated for Policy


Letters patent

 
In Canada, a procedure used by insurance companies wishing to incorporate through the federal government or in the provinces of Quebec, New Brunswick, Prince Edward Island, and Manitoba to petition the appropriate government agency for incorporation.


Level commission schedule

 
A commission schedule that provides the same commission rate for the first and renewal years.


Level premium annuity

 
A deferred annuity for which the purchaser of the annuity pays equal premium amounts at regular intervals, such as monthly or annually, until the date the benefit payments are scheduled to begin.


Level premium system

 
A life insurance pricing system whereby the purchaser pays the same premium amount each year the policy is in force.


Level premium whole life insurance

 
A type of whole life insurance for which equal premiums are payable throughout the premium payment period.


Level premiums

 
Premiums that remain the same each year that the life insurance policy is in force.


Level term insurance

 
A type of term insurance that provides a death benefit that remains the same during the period specified. Premiums for level term insurance policies usually remain the same throughout each term of coverage.


Levelised commission schedule

 
A commission schedule that provides different percentages for first-year and renewal commissions, but the differences between these percentages are smaller than the differences between first-year and renewal commissions under traditional commission schedules. Also known as a heaped commission schedule.


Leveraged ESOP

 
An employee stock ownership plan (ESOP) that borrows money and uses the borrowed funds to buy stock of the employer. The employer then makes regular contributions to the plan on behalf of the participating employees. The ESOP uses this contributed money to pay back the loan and allocates the stock little by little to the employees. The employer's contributions are tax deductible for the employer and tax deferred for the employee.


Liabilities

 
A company's debts and future obligations. For an insurance company, liabilities include amounts owed to creditors and the actual and expected claims of its policy owners and their beneficiaries.


Liability insurance

 
A kind of insurance that provides a benefit payable on behalf of a covered party who is held legally responsible for harming others or their property.


Licensed broker

 
An insurance salesperson who is not under an agency contract with any insurance company, and who is usually considered to be an agent of the client rather than of the insurer. Also known as a pure broker.


Life annuity

 
A series of payments that are made at regular intervals as long as a designated person, the annuitant, is then alive.


Life annuity with period certain

 
A life annuity which promises that if the annuitant dies before the end of a designated period (usually 5, 10, or 20 years), the insurer will continue payments to a contingent payee until the end of the designated period. Also called a life income with period certain annuity.


Life income option

 
A life insurance settlement option under which the insurer uses the policy proceeds and interest to pay the beneficiary a series of equal payments for as long as the beneficiary lives.


Life income option with period certain

 
A life insurance settlement option in which the insurer guarantees to pay the beneficiary a series of equal payments for a designated period, such as 10 years; thereafter, the payments will continue only as long as the original beneficiary lives. If the original beneficiary dies during the guaranteed period, payments will be made to a recipient designated by the original beneficiary until the end of the guaranteed period, at which time all payments will stop.


Life income option with refund

 
A type of life income settlement option in which the insurer guarantees that if the beneficiary dies before the total amount paid under the option equals the proceeds of the policy, then the insurer will pay the difference to a contingent payee. Also called a refund life income option. See also cash refund option, installment refund option, and settlement options.


Life income with period certain annuity

 
See life annuity with period certain.


Life insurance

 
Insurance that provides protection against the economic loss caused by the death of the person insured.


Life insured

 
In the common law provinces of Canada, the person whose life is insured by an individual life insurance policy. Called the insured in the United States and Quebec. (For the purposes of this glossary, we have used the United States term "insured", except in definitions of purely Canadian terms, in which cases we have made it clear that "life insured" is a Canadian term.)


Life underwriter

 
See insurance agent.


Lifetime maximum

 
For any individual, the maximum amount that a medical expense policy will pay for all the eligible medical expenses the individual incurs while insured under the policy.


Limited coverage policy

 
A type of medical expense policy designed to cover only those medical expenses caused by a specified disease, such as cancer, which is named in the policy. Also called a dread disease policy.


Limited-payment whole life insurance

 
A type of whole life insurance that does not require premium payments during the entire lifetime of the insured. Some limited-payment policies specify the number of years during which premiums are payable, while other policies specify an age after which premiums are no longer payable. Single-premium whole life insurance, in which only one premium payment is made, is an extreme type of limited-payment insurance.


Living benefit rider

 
A life insurance policy rider which allows the insured to receive all or part of the policy's death benefit before the insured's death if certain conditions are met. This type of provision is often used to help an insured pay health care costs if he or she becomes terminally ill.


Loading

 
A charge that the insurer adds to the net premium to produce the gross premium actually paid by the policy owner. The loading is designed to cover the operating expenses of the company, to compensate the company for the loss of income when policies lapse and to provide margins for profits and contributions to surplus.


Location-selling distribution system

 
A system that distributes insurance products by locating insurance offices and agents in places where consumers generally shop for other items or take care of other business matters, such as department stores, grocery stores, and banks. Also known as the retail outlet distribution system.


Lock-box banking

 
A method of premium collection in which premium payments are received at a specified post office box. The insurer authorizes a bank to have access to that box and to remove and open the mail. All premium payments are deposited immediately in the bank, and the returned portions of the premium notices, along with a record of deposits, are sent to the insurer.


Long-form reinstatement application

 
A reinstatement application similar to a policy application in that both address the long-term health history of the insured.


Long-term care (LTC) insurance

 
Coverage available on an individual or group basis to provide medical and other services to patients who need constant care in their own home or in a nursing home.


Long-term disability income insurance

 
Disability income insurance which typically provides disability income benefits that begin at the end of a specified waiting period and that continue until the earlier of the date when the insured person returns to work, dies, or becomes eligible for pension benefits. See also disability income insurance and short-term disability income insurance.


Loss ratio

 
In pricing health insurance, the loss ratio is a means of comparing claims losses to premium earnings. To determine its loss ratio, an insurer divides the dollar amount of claims it incurred during a given year by the dollar amount of premiums it earned during the same year.