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• Lapse:
  The termination of an insurance policy due to non-payment of premium(s).

• Lapsed Policy:
  A policy terminated for non-payment of premiums.

• Larceny:
  The unlawful taking of personal property of another.

• Law of Large Numbers:
  A concept that the greater number of exposures, the more closely actual results approach the probable results expected from a number of exposures.

• Legal Reserve:
  The minimum reserve which an insurance company must keep to meet future claims and obligations, as calculated under their state insurance code.

• Level Premium:
  A premium which remains unchanged throughout the life of a policy, example: level term insurance and long term care insurance.

• Level Premium Life Insurance:
  Life insurance for which the premium remains the same from year to year.

• Liability:
  Any legally enforceable act or obligation.

• Liability Insurance:
  Insurance covering the legal liability of the insured resulting from injuries to a third party to their body or damage to their property.

• Liability Limits:
  The maximum sums listed on a liability policy which an insurance company provides protection.

• License and Permit Bond:
  A type of surety bond guaranteeing that a person bonded will comply with all laws and regulations that govern their activities.

• Life Annuity:
  A series of payments which once begun, continue throughout the remaining lifetime of the annuitant but not beyond.

• Life Expectancy:
  The average number of years of life remaining for a group of persons of a given age.

• Life Income:
  A life insurance settlement option in which the policy proceeds are paid during the lifetime of the beneficiary.

• Life Insurance:
  Insurance providing payment of a specified amount on the insured's death, either to his or her estate or to a designated beneficiary.

• Life Insurance in Force:
  The total sum of the face amount, plus dividend additions, of life insurance polices outstanding at a given time.

• Lifetime Disability Benefit:
  A disability benefit to replace income lost by an insured person as long as they are totally disabled, even for a lifetime.

• Limited Policy:
  A contract which covers only certain specified diseases or accidents.

• Liquidation:
  The dissolving of a company by selling its assets for cash.

• Liquor Liability Insurance:
  Provides protection for the owners of an establishment that sells alcoholic beverages against liability arising out of accidents caused by intoxicated customers.

• Living Benefits Rider:
  A rider that allows insureds to add Long Term Care benefits to a life insurance policy.

• Living Trust:
  A trust created while the creator of the trust is living.

• Long-Term Care:
  The care of broad-ranged maintenance and health services to the chronically ill or disabled. Services may be provided on an inpatient (rehabilitation facility, nursing home, mental hospital), outpatient, or at-home basis. Most long term care premiums are level.

• Long-Term Disability Insurance:
  Insurance to provide a reasonable replacement of a portion of an employee's earned income lost through serious illness or injury during the normal work career.

• Loss:
  The reduction in the value of an insured's property caused by a covered peril.

• Loss Control:
  Any actions intended to reduce the frequency or severity of losses.

• Loss Payable Clause:
  A mean of protecting a mortgagee's interest in property by directing the insurer to make a loss payment to the mortgagee in the event of a loss.

• Loss Prevention:
  A measure which reduces the probability of a particular loss but does not eliminate completely all possibility of that loss

• Loss Ratio:
  The ratio of claims to premiums.

• Loss Reserve:
  An amount set up as the estimated cost of a claim.

• Lump-Sum:
  Payment within one taxable year of the entire balance payable to a beneficiary.

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