The consumer principle that the possible size of a loss is a better measure of its significance than the probabilities of various sized losses.
Tag: RAW
Large risks
Large risks with commercial customers that are located in the European Economic Area are not subject to the Insurance: Conduct of Business rules on standards of advice. They are insurances embracing: (a) railway rolling stock, aircraft, ships, goods in transit, aircraft liability and liability ships; (b) credit and suretyship, where the policyholder is engaged professionally in an industrial or commercial activity or in one of the professions and the risks relate to such activity; (c) land vehicles (other than railway rolling stock), fire and natural forces, other damage to property, motor vehicle liability, general liability and miscellaneous financial loss, in so far as the policyholder exceeds at least two of the following three criteria: (i) balance sheet total €6.2 million; (ii) net turnover – €12.8; (iii) average number of employees during the year – 250.
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An official term used in EEA insurance regulation. The formal definition of “Large Risks” is found in the EU’s 2nd Non-Life Insurance Directive (88/357). It can be summarised as meaning: (i) Risks classified as: Railway rolling stock Aircraft (including aircraft liability) Ships (sea, lake and river and canal vessels) (including liability) Goods in transit (including merchandise, baggage, and all other goods). (ii) Risks classified as Credit or Surety where the policyholder is engaged professionally in an industrial or commercial activity or in one of the liberal professions, and the risks relate to such activity. (iii) Risks classified as: Fire and natural forces Other damage to property General liability Miscellaneous financial loss in so far as the policyholder exceeds the limits of at least two of the following three criteria: – balance-sheet total: 6.2 million euros, – net turnover: 12.8 million Euros, – average number of employees during the financial year: 250. If the policyholder belongs to a group of undertakings for which consolidated accounts are drawn up, the criteria mentioned above is applied to the consolidated accounts.
Laser Beam Endorsement
An endorsement to a “claims made” liability form used to exclude specific accidents, products, work or locations. It earned its nickname because it allows an insurer to zero in with a sharp focus to exclude specific exposures.
Laser beam endorsement (Liability Insurance)
An endorsement that allows insurers to exclude particular exposures.
Lash
Lighters Abroad Ship: See Also: “Ship.”
Lash Vessel
Designed to loan internally, barges specifically designed for the vessel. The concept is to quickly float the barges to the vessel (using tugs or ships wenches) load these barges through the rear of the vessel, then sales. Upon arrival at the foreign post, the reverse happens. Barges are quickly floated away from the vessel and another set of waiting barges quickly are loaded. Designed for quick vessel turn-around. Usually crane-equipped; handles mostly break-bulk cargo.
Last clear chance (Legal Terminology)
A principle wherein an individual who had a final clear opportunity to circumvent an accident and does not do so can be liable for the accident.
Last Clear Chance Rule
Statutory modification of the contributory negligence law allowing the claimant endangered by his or her own negligence to recover damages from a defendant if the defendant has a last clear chance to avoid the accident but fails to do so.
last menstrual period (LMP)
Last date of the patient’s monthly discharge of blood and cellular debris from the uterus through the vagina. This date is expressed as eight digits and placed in Block 14 of the CMS-1500 claim form.
Last straw/death blow cases
Final link in a chain of events closest in time to the loss but not closest in efficiency. In Leyland Shipping Co. v. Norwich Union (1918) a torpedoed ship later sunk following a storm, the ‘last straw’, but the proximate cause of the loss was the torpedo damage. The insurer was not therefore liable as the policy excluded war risks. An undamaged ship would have survived the storm.