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Lapse: The termination of an insurance policy due to the failure to pay the premium
  
Leasehold Interest: Property insurance covering the loss suffered by a tenant due to termination of a lease because of damage to the leased premises by a covered loss
  
Lessee: The person to whom a lease is granted
  
Lessor: The person granting the lease
  
Liability: The legal obligation to pay a monetary award for injury or damage caused by one's negligent or statutorily prohibited action
  
Liberalization Clause: A provision within an insurance policy that broadens the coverage if the insurance company offers a broader coverage form within the first 45 days of coverage
  
Lien: An obligation that can be held by an individual who has an interest in a particular matter or property
  
Limit of Liability: The most an insurance company agrees to pay in the case of loss
  
Longshore and Harbor Workers' Compensation Act: A federal law that provides workers' compensation benefits to employees of a vessel injured in maritime employment - usually in loading, unloading, repairing or building a vessel - but not applicable to crew members
  
Loss: The amount an insurance company pays for damages under the terms of a policy
  
Loss Adjustment Expense: The cost assessed to a particular claim for investigating and adjusting that claim
  
Loss Constant: A flat charge added to the premium of small workers' compensation policies to offset higher loss ratios
  
Loss Control: A technique that is put in place to reduce the possibility that a loss will occur or reduce the severity of those that do occur
  
Loss Payable Clause: An insurance clause that authorizes loss payments to a person or entity having an insurable interest in the covered property
  
Loss Ratio: Percentage of losses incurred against earned premiums
  
Loss Report: A form showing reported claims which provides information such as the date of occurrence, type of claim, amount paid and amount reserved for each loss
  
Loss Reserve: An estimated amount set aside for a particular claim that has not yet been paid
  
Lost Policy Release: A signed statement by the named when the insured wishes to cancel the policy, but has lost or mislaid the policy, which releases the insurance company from all liability or losses
  
Medical Payments, Auto: Coverage, which is optional, under an auto policy to pay for medical expenses for bodily injury caused by an auto accident, regardless of fault. Coverage for persons other than the named insured and his or her family members is typically restricted to circumstances when they are occupants of the insured auto
  
Medical Payments, General Liability: A general liability coverage that reimburses others, regardless of fault, for medical or funeral expenses incurred as a result of bodily injury or death sustained by an accident
  
Mexico Coverage: Coverage which is sometimes provided under automobile policies for the operation of an insured motor vehicle within Mexico, usually limited to a stated number of miles from the U.S. border
  
Minimum Premium: The lowest amount of premium to be charged for providing a particular insurance coverage
  
Misrepresentation: A false or misleading statement, either directly or indirectly that, if intentional and material, can allow the insurer to void the insurance contract
  
Mobile Equipment: Equipment such as earthmovers, tractors, diggers, farm machinery, forklifts, etc., that even when self-propelled, are not considered as automobiles for insurance purposes
  
Monopolistic State Funds: States or Jurisdictions where an employer must obtain workers' compensation insurance from a state fund or qualify as a self-insurer, as is allowed in five of the states: North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico and the U.S. Virgin Islands
  
Mortgage Clause: Property insurance provisions granting protection for the mortgagee named in the policy. It establishes that loss to mortgaged property is payable to the insured and to the mortgagee named in the policy
  
Named Perils Coverage: A property insurance term referring to exact causes of loss specifically listed as covered
  
National Flood Insurance Program: A federally funded program established to make flood insurance available to properties located in participating communities
  
Nonadmitted Insurer: An insurance company that is not licensed to do business in a specific state. The insurers may write coverage through an excess and surplus lines broker that is licensed in these jurisdictions
  
Nonowned Automobile: In commercial auto policies, coverage for autos that are used in connection with the named insured's business but are neither owned, leased, hired, rented or borrowed by the named insured. The term specifically applies to vehicles owned by employees and used for company business
  
Nonsubscription: A Workers' Compensation term used in Texas that refers to employers who choose to be out of the workers' compensation system. Firms that are proven negligent in causing a worker's injury, can be held liable in tort, since nonsubscribing employers waive the traditional common law defenses available to employers subject to workers' compensation laws
  
Occupational Disease: A condition or disorder that is caused by exposure to environmental factors associated with employment, including acute and chronic illnesses or diseases that may be caused by inhalation, absorption, ingestion, or direct contact
  
Occupational Injury: An injury arising in the course and scope of employment that is caused by factors associated with the work undertaken
  
Occurrence: A continual, gradual or repeated exposure to substantially the same general harmful conditions. General liability policies insure liability for bodily injury or property damage that is caused by an occurrence
  
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