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.
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.
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.
Lloyds
Lloyd’s of London, generally known as Lloyd’s, is not an insurance company in the traditional sense and it’s an insurance marketplace, or a “society of members,” where various syndicates come together to underwrite insurance risks.
Long Term Care Insurance
Long-term care insurance is designed to help cover the costs of long-term care services, which can include assistance with daily activities (like bathing, dressing, and eating), supervision due to cognitive impairment, and care in various settings.
Loss Adjuster
A loss adjuster, also known as a claims adjuster or insurance adjuster, is a professional who investigates insurance claims to determine the extent of the insurer’s liability.
Loss Adjustment Expenses Ratio
The Loss Adjustment Expenses Ratio (LAER) is a measure of how efficiently an insurance company is handling its claims.
Loss Payee
A loss payee is a person or entity that is named in an insurance policy to receive payment for a covered loss.
Loss Ratio
The loss ratio is a key metric used to assess the financial performance of an insurance company.