Joint Life -
Where a plan covers two or more people. Payment of the benefits
may depend on what happens to just one of them, or to all of
them.
Joint Life Annuity
-
An annuity that will pay out to a
partner after the policyholder’s death.
Key Features -
A
document that insurance and investment firms must produce, by
law, that sets out the main features of the plan.
Key Person Insurance -
In the event of the death of a key
employee on whom the business depends for its continued
profitability, or even existence, this type of cover provides a
sum of money which can be used to pay for the cost of finding
and training a successor, and to compensate for reduced
profitability.
Knock-for-Knock
- An
agreement whereby each motor insurer paid for damage to its
policyholder’s car, regardless of which driver was to blame,
providing the policy covered damage to the policyholder’s own
car. No longer in operation.
Lapse -
The non-renewal of a policy for any reason.
Latent Disease -
An illness that lies dormant for some
years before manifesting itself.
Legal Expenses Insurance
- Covers
the cost of legal proceedings in circumstances defined in the
policy.
Level Premium
-
Premium that stays at the same amount
throughout the term of a policy.
Liability
- Legal
responsibility for causing loss to someone else by injuring them
or damaging their property.
Life Assurance Premium Relief
-
Tax relief on life
insurance premiums. Applies only to policies taken out before 14
March 1984.
Life Expectancy
-
The length of time a person is likely
to live, taking into account such factors as their present age,
gender, health and occupation.
Life Fund
-
The pool of money, maintained by an insurance
company, into which all its life insurance policyholders'
premiums are paid and out of which all claims are paid.
Life Insurance - Long-term
policies
which pay out on death or, in some cases, on earlier maturity of
the policy, eg Endowment, Term, or Whole Life
policies.
Linked
-
Describes any plan where the value of you
insurance, savings or investment goes up or down in line with
the price of units in a fund.
Lloyd’s Members
-
Individuals
on whose behalf Lloyd’s of London policies are issued. They
pledge all their personal wealth to pay losses. Corporate
members were also introduced in 1994.
Lloyd’s of London
- An
insurance market organised into syndicates, which underwrites
most types of policy.
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- An extra premium you are charged because
of a higher risk such as poor health or dangerous job.
London Market -
A distinct, separate part of the UK
insurance and reinsurance industry centred on the City of
London. It comprises insurance and reinsurance companies, Lloyd’s
syndicates, protection and indemnity clubs (originally created
to serve the marine industry), and brokers who handle most of
the business. There is general agreement that the core of its
activity is the conduct of internationally traded insurance and
reinsurance business.
Long Term Care Insurance
-
Pays for some or all of the
agreed costs of long-term care. Intended mainly to cover the
costs of elderly people being looked after either at home or in
residential care.
Long-term Insurance
-
Life insurances and pension plans,
that can last for many years.
Loss
- Another term
for a Claim.
Loss Adjuster
- A
person, independent of an insurance company but engaged and paid
by it, who checks that a claim is covered and negotiates with
the policyholder the amount payable for a claim.
Loss Assessor
- A
person who negotiates claims on behalf of policyholders.
