L - GLOSSARY 1. Lapse: The termination of an insurance policy due to non-payment of premiums. 2. Liability: A legal responsibility for damages or loss. 3. Liability Insurance: Coverage that provides protection against claims resulting from injuries and damage to people and/or property. 4. Life Annuity: A financial product that provides periodic payments for the lifetime of the annuitant. 5. Life Insurance: A contract that pays a beneficiary upon the insured's death. 6. Limit of Liability: The maximum amount an insurer will pay under a policy for a covered loss. 7. Living Benefits: Benefits that allow the policyholder to access a portion of the death benefit while still alive, under certain conditions. 8. Loan Value: The amount a policyholder can borrow against the cash value of a life insurance policy. 9. Loss: A reduction in value, destruction, or disappearance of property or a legal liability. 10. Loss Adjustment Expense: Costs associated with investigating and settling insurance claims. 11. Loss Ratio: The ratio of losses paid by an insurer to the premiums earned. 12. Loss Reserve: Funds set aside by an insurer to cover future claims. 13. Loss of Use: Coverage that provides compensation for the loss of use of a property due to damage. 14. Lloyd's of London: An insurance market where members join together to underwrite risks. 15. Long-Term Care Insurance: Coverage that provides for the cost of long-term care services. 16. Loss Control: Strategies and measures to reduce the frequency or severity of losses. 17. Legal Reserve: The minimum amount of money that an insurance company must hold to cover future liabilities. 18. Level Premium: A premium that remains constant throughout the life of the policy. 19. Lapse Rate: The percentage of policies that are not renewed or are terminated. 20. Liberalization Clause: A policy provision that allows for the broadening of coverage without an increase in premium. 21. Limited Payment Life Insurance: A type of life insurance where premiums are paid for a set number of years. 22. Loading: The amount added to the basic premium to cover expenses and contingencies. 23. Loss Payee: A party named in the policy to receive payment in the event of a loss. 24. Loss Experience: The record of losses an insurer has incurred over a period. 25. Loss Frequency: The number of times a loss occurs within a given period. 26. Loss Severity: The average monetary value of losses. 27. Loss Prevention: Measures taken to prevent accidents or losses from occurring. 28. Loan Protection Insurance: Coverage that pays off a loan in the event of the borrower's death or disability. 29. Loss Leader: A product sold at a loss to attract customers. 30. Lapsed Policy: A policy that is no longer in force due to non-payment of premiums.