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Inland Marine 1)The insurance of property (generally on an "all-risk" basis) which is in the course of transportation or is of such a nature that it may easily be transported. Also includes some risks at fixed locations considered "instruments of transportation or communication," such as bridges, tunnels, neon signs, and street clocks, etc., which were accepted as inland marine by custom. 2)Originally meant the insurance of goods in transit "inland", instead of at sea, by underwriters who specialized in ocean marine insurance.
Inside Limits Limits placed on hospital expense benefits which modify benefits from the overall maximums listed in the policy. An inside limit when applied to room and board, limits the benefit to not only a maximum amount payable, but also limits the number of days the benefit will be paid.
Insolvency Fund An amount of money assessed certain insurers in a given state to reimburse policyholders and claimants of an insolvent insurer in that state. The fund may be created before an insolvency occurs (pre-assessment, as in New York) or afterward (post-assessment), and virtually all states now have such protection. Also called a guaranty fund.
Insurable Interest A potential for financial loss from a certain event which a person must have before acquiring insurance against that event. The event may be illustrated by the following: the destruction of property owned (in fire isurance), the incurring of legal liability for negligence in causing loss to others (in liability insurance), the compliance with law (in workers compensation insurance), the loss or impairment of human life value (in Life Insurance, disability insurance, and annuities), or expenses fortuitously incurred (in hospitalization insurance). In life insurance, the applicant of the policy must suffer a financial loss, or the loss of love and affection, by the death of the insured.
Insurance The transfer of risk, or chance of loss, from one party (the insured) to another party (the insurer), in which the insurer promises, usually specified in a written contract, to pay the insured, or others on the insured's behalf, an amount of money, services, or both, for economic losses sustained from an unexpected (accidental) even, during a period of time for which the insured makes a premium payment to the insurer.
Insurance Agent One who has the authority to act for another. In insurance language, an agent is the person who sells insurance by contacting the policy holder. By contract and by law, the agent is endowed with many of the powers of the company itself. There are various different types of agents, based upon the contractual relationship with the insurer they represent.
Insurance Broker A licensed, legal representative of the insured who negotiates with underwriters on behalf of the insured. The broker receives a commission from the insurer (underwriter).
Insurance Company An organization chartered by state law to operate as an insurer in some of the principal types of insurance: life, fire, marine, casualty, and surety. Reciprocals and Lloyds syndicates permitted under many state laws are not companies, nor are they corporations.
Insurance Contract The written contract or insurance policy between the insured and the insurer detailing the coverage provided, exclusions and limitations, conditions in case of loss, and other details pertinent to the terms of the agreement.
Insurance Department That department of a state government which has charge of enforcing the laws governing insurance. Usually run by either an elected or appointed official called the superintendent or commissioner of insurance.
Insurance Exchanges Exchanges established by law in New York, Illinois and Florida (and considered elsewhere) to provide facilities at a fixed location patterned after Lloyd's of London. Through insurance exchanges, buyers can secure insurance from insurers generally in the form of underwriting syndicates, which are members of the exchange.
Insurance In Force The annual premium payable on current contracts of insurance.
Insured The person(s) or party(ies) protected by an insurance policy, synonymous with assured. Some property-liability policies distinguish between the named insured and other insureds.
Insured Loss Ratio Term used by an insurer when evaluating what portion or percent of that insured's losses are reinsured as compared to earned premium.
Insured Peril Those causes of loss, such as fire, explosion, or accident that are covered by the insurance contract. In many standard property insurance policies, peril is now called cause of loss.
Insurer The insurance company or other organization, such as a syndicate, pool or association, providing insurance coverage and services.
Insuring Agreement The portion or section of an insurance policy that details what is covered by the contract for causes of loss or perils, subject to other provisions such as exclusions, limitations, and conditions.
Insuring Clause That portion of a policy which describes the risk which the insurer has agreed to assume.
Insuror A term adopted and used by some agents to enhance their public image as persons who represent insurers in effecting contracts of insurance between insurers and insureds. As such, insuror may be considered a misnomer when confused with insurer, which is reconized in statutory law as the party to an insurance contract which undertakes to indemnify for losses incurred by, or to provide services to, the other party to the insured contract (the insured). Thus, an insurer is a risk-bearing party in an insurance contract, while an insuror is not. Two state associations of insurance agents, Tennessee and Colorado, use insuror in their title.
Integrated LTC Rider A LTC rider which is added to a life insurance policy whereby LTC benefits paid will reduce the life insurance policy's benefits. LTC benefits are dependent on the life insurance benefits available.
Intentional Injury Depending upon the type of insurance, 1)Injuries that are caused intentionally or with intent to harm or injure; or 2)Self-inflicted injuries, either of which is usually considered excluded by its respective policy type.
Intentional Injury An injury resulting from an act, the doer of which had as his intent, inflicting injury. In an accident insurance contract, an intentionally self-inflicted injury is not covered (because it is not an accident). In general, intentional injuries inflicted on the insured are covered (assuming no collusion).
Intermediate Care A level of care associated with a skilled nursing facility which provides nursing care under the supervision of physicians or a registered nurse. The care provided is a step down from the degree of care described as skilled nursing care.
Intermediate Care Facility A facility licensed by the state, which provides nursing care to persons who do not require the degree of care which a hospital or skilled nursing facility provides.
Invalidity Sickness.
Jacket The outer covering of an insurance policy, containing the declarations, insuring agreements, exclusions, conditions, and provisions to the policy, including any endorsements or riders.
Jones Act A federal law designed to offer remedy and legal protection to sailors, seamen, and other maritime employees who are not covered by state workers compensation and employers liability laws. State laws do not apply to employees on wharves, docks, or navigable waters whether they be interstate or international. It allows maritime employees the ability to sue their employers or shipowners should they be injured through the negligence of that employer or shipowner.
Landlords Protective Liability If an owner of a property leases the entire premises to others who assume full control, the chance of being held liable for accidents occurring on the premises is diminished. The owner can insure the liability as "landlords protective liability," at lesser rates than for the normal owners, landlords, and tenants form of policy. This type of policy is rarely requested or used since the advent of the commercial general liability and the use of additional insured endorsements.
Laser Endorsement A type of endorsement that may be attached to the claims-made version of the commercial general liability policy (CGL) for the purpose of excluding specific accidents, products, work, or locations.
Latent Defect A defect found in a product that is not readily visible or discernible at the time of manufacture and not discovered until later, usually when in use.
Lay Up Warranty A provision in a polcy insuring a vessel, whereby the policy holder agrees that the vessel will not be in use. Also applicable to automobiles.
Layering Risks that have high limits or high exposure to loss are often protected by purchasing policies to cover limits in layers. The first layer of coverage is called the primary layer and responds first to loss. When that limit has been exhausted, the second and subsequent layers respond. Because of the structure of layering, the second layer and above are normally much less expensive than the primary and, therefore, this method of protection can be cost effective.
Lead Underwriter A concept or structure used by Lloyd's companies which signifies the underwriter whose name is the first to appear and the first to respond on a Lloyd's slip. Because the prestige of the lead underwriter may influence others to participate (or not participate), the lead underwriter must be reviewed carefully.
Legal Liability Liability imposed by law, as opposed to liability arising from an agreement or contract.
Legend Drug A drug which has on its label "caution: federal law prohibits dispensing without a prescription."
Length of Stay (LOS) The total number of days a participant stays in a facility such as a hospital.
Lesion injury; hurt
Lessee Person to whom a lease is granted.
Letter of Credit 1)A commitment made by an issuing bank or other party at the request of a customer to honor drafts or other demands for payment presented to the bank under the terms of the credit and, if the commitment is a documentary draft, upon presentation of the required documents of title. 2)In reinsurance, a commitment made by a bank to a reinsured which can be drawn upon to cover any of the reinsurer's liabilities to the reinsured under their reinsurance agreement.
Liability 1)An obligation imposed by law or equity. 2)Money owed or expected to be owed. In an insurance company financial statement, the two columns it contains are its "assets" (or the amounts it owns) and the "liabilities" (or the amount it owes or expects to owe). Liabilities generally are defined by state statute or insurance department regulation for use in the annual statement of an insurer. The term is also defined for special purposes by other regulatory officials, such as the Securities and Exchange Commission.
Liability Insurance Protection which pays sums that an insured is legally obligated to pay, or that the insurer has agreed to pay, as damages to others as a result of the insured's negligence. May cover bodily injury to another or damage to property of another.
Libel 1)To publish defamatory statements about another. The general distinction between libel and slander is that the first must be in writing or similar permanent form, while the latter is oral. The distinction at law is not as simple. 2)In maritime law, the word for a legal action directed against a ship.
Lifetime Disability Benefit A disability benefit providing income payments to the insured as long as the insured is disabled.
Lifetime Maximum Benefit The maximum amount a health plan will pay in benefits to an insured individual.
Lightening Clause A clause formerly attached to a fire insurance policy extending the coverage to include damage done by lightening. Since the fire policy now covers lightning damage, the term is of historical interest only.
Limit or Limit of Liability According to the terms of a given policy, the most an insurer will pay for any one loss.
Limitations A restriction on the amount of benefits paid out for a particular covered expense.
Line Card 1)When a risk does not appear on the Sanborn Map, fire insurance companies are accustomed to listing the details of it on a location card to determine if and when the company is offered another line on the same piece of property. 2)In an agent's office, the card on which all the insurance sold to one customer is listed.
Lloyd's Broker A broker accredited to deal with underwriters at Lloyd's, London, the rules of which do not permit the placement of insurance other than through such a broker.
Lloyd's Member Once an individual is able to show proof of a rather significant financial net worth and is willing to participate as a member by putting that net worth on the line as collateral, that individual must then be elected by the Lloyd's membership in order to become a member of Lloyd's of London. These persons are also known as "Lloyd's names." Individuals are insurers; the group is Lloyd's.


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