BROWN O'HAVER Adjusters For THe Insured

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Insurance Dictionary

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A B C D E F G H I J L M N O P R S T U W

LAPSE - The termination of a policy because of failure to pay the premium.

LAST CLEAR CHANCE DOCTRINE - This is a doctrine which, in effect, states that one party, even though technically and legally correct in his position, could have, by vigilance, noted the impending danger or accident caused by the other party's negligence and taken action in time to avoid the injury or accident. An example would be a locomotive engineer proceeding down the railroad right-of-way notices an individual trespassing on the railroad tracks several hundred yards up ahead. The engineer has the legal right-of-way and up to this point, has the right to continue the movement of his train forward. The individual on the tracks is a trespasser and has no legal right. In many states, under the last clear chance doctrine, the locomotive engineer would be held responsible if he failed to take whatever action he might successfully have taken to prevent injury to the trespasser.

LEASE - A contract in writing whereby a person, having legal right to land or property, conveys or rents a portion of this estate to another.

LEASEHOLD INSURANCE - Insurance for the owners of property that is leased to others against the profit through termination of the lease by fire or other peril.

LEASEHOLD INSURANCE COVERAGE FORM - A commercial property coverage endorsement used to insure an insured tenant's interest in a favorable lease under which the rent paid is less than the rental value of alternative premises. It pays the difference between the rent paid and the rental value if the lease is canceled because of property damage.

LEGAL RESERVE - The minimum reserves that are required under the jurisdiction laws in which an insurer operates.

LESSEE - A person who is granted a lease, also known as a tenant.

LESSOR - The person who grants the lease, also known as the landlord.

LIABILITY INSURANCE - The insurance that pays for loss of an insured arising out of his own responsibility, due to negligence.

LIABILITY LIMITS - The sum beyond the liability which the insurance company does not protect.

LIBEL - Any malicious writing expressed either in printing, writing, picture or any effigy. Any act, other than spoken words, which makes a person look bad or ridiculous. An act which diminishes one's reputation.

LIMIT OF LIABILITY - The maximum amount which an insurance company agrees to pay under an insurance policy.

LITIGATION - This is a law suit, a contest in court, designed to resolve a controversy between two or more parties, or between the state and one or more parties. Each side to such a contest is permitted to present its evidence and to argue is case.

LLOYD'S - A broad term used to designate a group or groups of individuals, not insurance corporations or companies, who act as underwriters and who, in effect, insure individuals wishing to place large insurance risks.

LLOYD'S BROKER - A person with the authority to negotiate insurance contracts with the underwriters on the floor at Lloyd's.

LOCAL AGENT - This is the person who sells an insurance policy for a company.

LOSS -Any reduction in value of an item described in an insurance policy for a company.

LOSS OF INCOME INSURANCE - Insurance paying loss of income. (See Business Interruption Insurance.)

LOSS OF SERVICES - A loss sustained by one who is entitled to the services of another. For example, in the wrongful injury to a wife or minor child, the parent or husband might be entitled to the value of the wife's or child's services from the party who committed the wrong. (See also "Consortium")

LOSS PAYABLE CLAUSE - A clause in an insurance contract providing for payment of loss or claim for which the insurance company would normally owe the insured, to someone other than the insured, such as a finance company which might be paid so as to protect its interest in a financed car.

A B C D E F G H I J L M N O P R S T U W

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