Knock for Knock Agreement
When two vehicles insured by different insurers collide, a knock-for-knock agreement is a practice where each insurer pays for the Own Damage (OD) of its own policyholder, regardless of which party was at fault.
Insurance Glossary
Glossary/Encyclopedia of insurance terms. In addition to the brief description of insurance terms, we have also provided detailed explanation of each term. By selecting ‘More Details’ in each term, you can view the detailed explanation of the term with examples.
Lapsed Policy
A lapsed policy is an insurance policy that has been terminated due to non-payment of premiums.
Law of large numbers
The law of large numbers is a fundamental principle of statistics and probability that plays a crucial role in insurance.
Legal Liability
Legal liability refers to the legal responsibility of a person or entity to pay for damages or losses caused to another person or their property.
Level Premiums
Level premiums are insurance premiums that remain the same throughout the policy period, regardless of any changes in the insured’s risk profile or other factors.
Liability Insurance
Liability insurance is a type of insurance that protects individuals and businesses from financial losses if they are held legally responsible (liable) for causing harm or injury to others.
Life Insurance
Life insurance is a contract between an insurance company and a policyholder where the insurer promises to pay a sum of money (death benefit) to named beneficiaries upon the death of the insured person.
Life Time Maximum Benefit
A lifetime maximum benefit is the total amount of money a health insurance plan will pay for covered healthcare expenses during the entire time an individual is enrolled in that plan.
Limit of Liability
The limit of liability, also known as the coverage limit, is the maximum amount an insurance company will pay for a covered loss under an insurance policy.
Limit Per Bottom (Marine Insurance)
In marine insurance, the limit per bottom refers to the maximum amount an insurer will pay for a loss to a single vessel or conveyance in a single incident. This limit is particularly relevant for open cover or open policies, where multiple shipments are covered under a single policy, as it helps the insurer manage their accumulation risk and maintain financial stability.
Limit Per Location (Marine Insurance)
In marine insurance, the “limit per location” refers to the maximum amount an insurer will pay for a loss or damage to insured property that occurs at a single location. This limit is particularly relevant for open cover or open policies where goods may be stored or transshipped at various locations throughout their journey.
Line Underwriter
A line underwriter is an insurance professional who evaluates and selects risks for a specific line of insurance, such as auto, property, or liability insurance.