LADDERING
Purchasing bond investments that mature at different time intervals.
LAPSE RATIO
The ratio of the number of life insurance policies that lapsed within a given period to the number in force at the beginning of that period.
LANDSLIDE
A disaster closely related to an avalanche, but instead of occurring with snow, it occurs involving actual elements of the ground, including rocks, trees, parts of houses, and anything else which may happen to be swept in.
LEAST EXPENSIVEM ALTERNATIVE TREATMENT
The amount an insurance company will pay based on its determination of cost for a particular procedure.
LIABILITY INSURANCE
Insurance coverage that offers protection against claims alleging that a property owner’s negligence or inappropriate action resulted in bodily injury or property damage to another party.
LIFE AND HEALTH GUARANTEE ASSOCIATION
An organization that operates under the supervision of a state insurance commissioner to protect policy owners, insured's, beneficiaries, and specified others against losses that result from the financial impairment or insolvency of a life insurer that operates in the state.
LIMNIC ERUPTION
A sudden release of asphyxiating or inflammable gas from a lake.
LOSS OF USE INSURANCE
Compensation for loss caused because the policyholder has lost the use of his property.
LOSS PAYABLE CLAUSE
A policy condition that enables an insured to direct the company to pay any loss that may be due to a third party.