Glossary

A Lloyd's members' agent is a firm or company that provides administrative services and advice to Lloyd's members. For example, members' agents help members select syndicates in which to participate.

Lloyd's of London is an association of independent underwriters operating in the United Kingdom. It is not an insurance company; rather, it operates as a marketplace for large and/or unusual insurance exposures where brokers representing insurance applicants are able to contract with underwriters offering coverage.

Lloyd's syndicates are the risk bearers at Lloyd's that write the insurance. Syndicates are provided with capital by one or more Lloyd's members and are managed by managing general agents. Syndicates often specialize in a number of classes of business and each syndicate determines its own strategy, including its risk appetite, reinsurance purchases, and claims approach.

A Lloyd's underwriter is a person who determines premiums, terms, and conditions for insurance policies underwritten by Lloyd's syndicates. Underwriters are employed and managed by managing agents.

Loan-backs are loans of assets from a captive to a shareholder or affiliated entity.

Locality Standard is a common law liability doctrine stating that the standard of care to which a physician is held is a function of the locality in which they practice. The rule rapidly lost favor among most courts and is therefore infrequently invoked as a defense to professional negligence. Given the advanced state of communication and travel, even physicians practicing in relatively isolated, rural areas can avail themselves of the most advanced methods of treatment and technology.

Logistics are transportation services that include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply and demand planning, third-party logistics management, and other support services.

London Interbank Offered Rate (LIBOR) is an interest rate that is set each business day morning in London by major banks. LIBOR serves as a worldwide benchmark rate that is responsible for determining the interest rates applicable to many consumer and business financial products, including credit cards, car loans, adjustable rate mortgages, municipal interest rate swaps, and corporate loans. In April 2008, regulators in Europe, the United States, and Japan began investigating reports that a number of major banks colluded to manipulate the LIBOR, an action that would add illegally to their profits. Several of the banks later agreed to pay fines and penalties based on information revealed during these investigations. As of November 2013, authorities are continuing to examine the roles of other banks and their directors and officers in conjunction with the manipulation of LIBOR.

Long-tail liability is the liability for claims that do not proceed to final settlement until a length of time beyond the policy year. High incurred but not reported (IBNR) claims contribute to this "tail" effect, since these losses are usually not settled until several years after the expiration of the policy in question.

Long-term care (LTC) refers to care and service required by an individual on a continuing basis because they can no longer perform some or all the activities of daily living. LTC is often used interchangeably with chronic care in the medical community.