A term life policy whose death benefit and premiums remain the same for the term of the contract.
Insurance Encyclopedia
Levelized commission schedule
Insurance commission table that provides different percentages for the first and renewal years of a policy. Also known as heaped commission schedule .
Leverage or Capitalization
Measures the exposure of a company’s surplus to various operating and financial practices. A highly leveraged, or poorly capitalized, company can show a high return on surplus but might be exposed to a high risk of instability.
Leverage, or capitalization
Measures the exposure of a company’s surplus to various operating and financial practices. A highly leveraged, or poorly capitalized, company can show a high return on surplus, but may be exposed to a high risk of instability.
Leveraged business
See: minimum deposit business .
leveraged employee stock ownership plan (LESOP)
Plan that borrows money and uses the funds to purchase stock of the employer. In turn the employer makes contributions to the plan on behalf of the participating employees. These are tax deductible for the employer and tax deferred for the employee. The ESOP uses the contributed money to pay the loan back and slowly gives the stock to the employees. Also see employee stock ownership plan (ESOP) .
Levy
1. General levy is paid by all occupational and personal pension schemes covered by the Pension Scheme Registry. The amount depends on the number of members. This levy funds the Registry, the Pensions Ombudsman and Opra, including grants made by Opra to OPAS. 2. The compensation levy is a part of the levy paid by the occupational pension schemes eligible for compensation. It pays the compensation and expenses of the Pensions Compensation Board.
Liabilities
A term for money that is currently owed or that will be owed in the future.
Liabilities to Third Parties, Motor Insurance
As per provision of Sec. 74 of Motor Insurance act where the assured has effected as Insurance in express terms against any liability to third party, the measure of indemnity subject to any express provision in the Policy, is the amount paid or payable by him to such third party in respect of such liability.
Liability
(i) According to the dictionary the term ‘Liability’ means ‘responsibility’; (ii) A claim upon one’s assets by another person (i.e. a debt); (iii) The condition of being bound in law and justice to do something which may be enforced in the courts; (iv) Probable cost of meeting an obligation; (v) Legal responsibility to pay others for losses or injuries they have suffered.
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MEDICAL,USA: 1. Something one is bound to do, or an obligation one is bound to fulfill, by law and justice. A liability may be enforced in court. Liabilities are usually financial or can be expressed in financial terms. Also, the probable cost of meeting such an obligation. 2. Under Medicare Secondary Payer guidelines, responsibility or fault for damages arising out of a specified incident. 3. In insurance, any claim not yet paid.
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US: Any legally enforceable obligation.
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Any legally enforceable obligation. Within the context of insurance, the obligation to pay a monetary award for injury or damage caused by one’s negligent or statutorily prohibited action.
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US: Any legally enforceable obligation. Within the context of insurance, the obligation to pay a monetary award for injury or damage caused by one’s negligent or statutorily prohibited action.