Browse the glossary by topic or alphabetically.

L

Lapse
Any period of time during which a person did not maintain the state-required minimum insurance limits; ALSO is termination of a policy because of failure to pay the premium
Late payment fee
Charge imposed on a debtor for not paying on time
Lease
Contract granting use/occupation of property during a specified period in exchange for a specified rent
Leaseholder
Individual who possesses or has use of property through a lease
Ledger balance
Balance in an account at the beginning of each day; includes all deposits or transactions posted from the previous night, whether or not any money has been collected; also known as the current balance
Lessee
Individual to whom a lease is granted
Liability
Company's legal debts or obligations that arise during the course of business operations
Liability coverage (auto)
Insurance that pays the losses of other people which an insured may cause unintentionally or through negligence
Liability coverage (homeowner)
Insurance that pays for damages to property owned by third parties or injuries to third parties which an insured may cause unintentionally or through negligence
Lien
When a creditor has the right to sell the mortgaged or collateral property if one fails to meet the obligations of a loan contract
Lienholder
Party who has a claim upon real or personal property until the satisfaction of some debt or duty
Life insurance
Provides a monetary payment to a designated beneficiary upon the death of the insured
Limited liability company
Legal entity that has the option of being taxed like a partnership, but shields personal assets from business debt like a corporation
Limited partnership
Partnership that is a business arrangement where the operation is administered by one or more general partners and funded by limited or silent partners who are legally responsible for losses based only on the amount of their investment
Limits of insurance
Maximum amount stated in the declarations page an insurance company will pay for a covered loss
Line of credit (LOC)
Arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain; borrower can draw down on the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement
Liquidation
Sale of the assets of a business to pay off debts
Long term care insurance
Policy that provides benefits for the chronically ill or disabled over a long period of time
Loss
Direct and accidental damage to the insured automobile or property used as the basis for filing a claim