Reinsurance where the cover provided is more limited than cover under the primary policy. Example: a hull is insured ‘named perils’ including partial loss under the primary policy but reinsured ‘total loss only’. LCR safeguards the reinsured’s treaty programme from a major loss by redirecting the total loss claim to LCR, normally arranged facultatively.
Insurance Encyclopedia
Limited coverage policy
Type of medical insurance policy that covers only medical expenses caused by a specific disease that is named in the policy. Also called dread disease policy .
Limited health insurance
Health insurance that only covers certain illnesses or injuries as specified in the contract.
limited liability company (LLC)
Hybrid form of business that combines the elements of partnerships and corporations. The owners are called members and receive protection from individual liability for company debts. For tax purposes, it is considered a partnership. Gains and losses are claimed by members on their own income tax returns.
Limited license
Kind of state license in which the type and number of services are less than for a full license to practice medicine. It is often limited to certain services within a specialty.
limited license practitioner (LLP)
Professional individual state licensed to provide specific health care services in private practice dependent on his or her specific scope of training such as chiropractors, dentists, optometrists, podiatrists, psychologists, and social workers. Also called limited practitioner .
Limited Market
Term used to describe the situation where only a few insurers are willing to accept insurance of a particular type.
Limited partnership
A form of partnership that consists of one or more general partners, who actively engage in the business, and one of more special partners, who are not liable for the debts of the partnership beyond their initial financial contribution. Commercial insurance policies usually differentiate in the Who Is Insured section among corporations, partnerships, and other business models. Therefore, the type of model being insured is important.
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A partnership of at least two people who manage a business together to earn a profit. One or more of the partners is considered the limited partner because he or she does not operate the business on a daily basis, but still has an investment in the business and a vote in the way it is managed. This partner has limited liability.
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An association of two or more persons who operate and manage a business for profit; at least one the partners does not work in the business but does have some management voice and financial investment. The limited partner has limited liability.
Limited payment life (Life Insurance)
Insurance that covers the insured’s whole life. Premiums are only paid for the amount of years specified.
Limited payment life insurance
See: limited payment whole life insurance .