See: Additional living expense coverage.
Insurance Encyclopedia
Loss of Use Insurance
Insurance of loss to an aircraft operator or a motorist consequential upon accidental damage to an insured vehicle, by way of indemnity or fixed benefit.
Loss of use insurance (Property Insurance)
Insurance that covers the loss of use of a property due to an insured peril.
Loss payable clause
A property policy provision that, at the request of the named insured, stipulates that claims tied to losses of certain property will be paid to both the named insured and the party named in the subject clause.
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Property Insurance provision authorizing the Insurers to pay any loss to the insured or to others identified in the Policy as their interest in future losses may appear at the time of those losses.
Loss payable clause (Property Insurance)
A clause authorizing payment to people with an insurable interest in the property, even if they are not named as the insured. This clause protects the lender in the case of a mortgage.
Loss Payee
The party to whom money or insurance proceeds is to be paid in the event of loss, such as the lienholder on an automobile or the mortgagee on real property.
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The person benefits should be paid to if a loss occurs, for example, the mortgagee of a home or property.
Loss payout pattern
Losses often are paid over a period of years, especially in casualty lines of insurance. The payout pattern illustrates the way that claims are paid out from the time they are filed until they are closed.
Loss portfolio
UK: an amount payable by a reinsurer to a cedant in consideration of the release of the reinsurer from all or part of the liability arising under a reinsurance contract in respect of claims incurred prior to a specified date (see also outstanding claims portfolio and premium portfolio).
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REINSURANCE,REFERENCE: See: Loss Portfolio Transfer.
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UK: The liability of an insurer for the unexpired portion of the in-force policies or outstanding losses or both for a specified segment of the insurer’s business for which reserves have been made. See LOSS PORTFOLIO TRANSFER; LOSS PORTFOLIO ENTRY; LOSS PORTFOLIO WITHDRAWAL.
Loss portfolio entry
A reinsurer may accept, at inception or renewal of a treaty, responsibility for the cedant’s loss portfolio from the previous year(s). The reinsurer thus pays losses for a contractually defined set of earlier losses in return for the unearned premium.
Loss portfolio reinsurance
a type of reinsurance whereby a reinsurer agrees to indemnify the cedant for all claims outstanding in a particular type or class of business, or the totality of the insurer’s business.