Glossary

Labor union group life insurance refers to an insurance plan for members of a union that usually offers annual renewable term life insurance policies, but some plans provide permanent life insurance policies. Group life insurance plans usually do not require physical examinations and cost less for participants than individual plans that offer the same benefits.

The Lamb-Weston rule prescribes a way of apportioning coverage among multiple applicable policies that imposes pro rata sharing of covered losses, regardless of the policies' "other insurance" provisions. Lamb-Weston, Inc. v. Oregon Auto. Ins. Co., 219 Or. 110, 341 P.2d 110 (Or. S.Ct. 1959).

Lapse concerns the termination of an insurance policy due to the insured's failure to pay the premium.

Lapse ratio refers to the number of policies that lapse during a period to the total number of policies written at the beginning of that period.

A laptop exclusion is one found in cyber and privacy insurance policies that excludes coverage for both first-party property and third-party liability claims caused by lost or stolen laptop and notebook computers. Some versions of this exclusion are even broader and preclude coverage for losses involving other types of portable electronic devices such as iPhones, iPads, tablets, and flash drives. The rationale for the laptop exclusion is that portable electronic devices are especially vulnerable to being lost, stolen, misplaced, or damaged. In addition, insurers believe that the more portable an electronic device is, the less control an insured business will have in safeguarding both the device itself and, more importantly, the data it contains. Some insurers will agree to remove this exclusion in exchange for additional premium. Favorable versions of this exclusion (for insureds) are those that "except" and thus cover losses involving portable computing devices or portable media containing electronic data if the data is encrypted. As a consequence of such wording, coverage applies to a loss involving a portable device on which data has been encrypted.

A large deductible plan is a cash flow workers compensation insurance program that allows the insured to retain a portion of each loss through a substantial deductible and to transfer onto an insurer losses in excess of that deductible. The insurer also handles losses falling below the deductible and bills back these costs to the insured.

Large line capacity concerns an insurer's financial ability to assume a significant exposure under a single primary or excess insurance policy. Often, this capacity depends on the aggregations of losses among policies and the amount covered under each one. For exposures above the large line capacity, reinsurance is the recommended option.

A laser exclusion is an exclusionary endorsement under a claims-made commercial general liability (CGL) policy that excludes liability arising from the products, locations, accidents, or work specified in the endorsement.

The last clear chance rule is a negligence doctrine that may allow a plaintiff who was partly at fault for an injury to recover damages when the defendant had the final reasonable opportunity to avoid the harm but failed to use ordinary care. The rule is most relevant in jurisdictions that follow contributory negligence, where a plaintiff's own negligence might otherwise bar recovery. It focuses on which party had the last practical chance to prevent the accident, despite earlier fault by another.

The last injurious exposure is a trigger used to establish which employer and workers compensation insurer are responsible for occupational disease that has manifested in an employee. For the injury to be covered, the last date of the employee's last exposure to the situation causing the illness must be determined to fall in the applicable employer's policy period under which the claim is filed.