Glossary

Livestock collision is a homeowners endorsement intended for "gentlemen farmers" with an incidental exposure to the death of farm animals. Payment is made for the death of livestock when caused by (1) collision or overturn of a vehicle on which the livestock is being transported or (2) livestock running into or being struck by a vehicle while the livestock is crossing, moving along, or standing in a public road.

Livestock coverage form is an inland marine policy that pays for a covered loss or damages to "livestock" on a named perils basis. "Livestock" is defined as cattle, sheep, swine, goats, horses, mules, and donkeys, and a "loss" is defined as the death or destruction of the livestock. This form, available on a stand-alone basis, is a good option for a tenant farmer who has no agricultural real property such as farmhouses and barns.

Living benefits are an option under some life insurance policies by which the insurer provides discounted policy proceeds (face amount, cash value, and dividends, if any) to a terminally ill insured. This permits the insured to meet extraordinary living, medical, or hospice expenses.

A Lloyd's broker is a client representative sanctioned by the Council of Lloyd's to contact underwriters at Lloyd's and negotiate insurance with the underwriters on behalf of the representative's clients. The client is the insured except in the case of US insureds when the client is normally the US broker or agent.

Lloyd's Central Fund is a fund to protect policyholders in case any underwriting member should be unable to meet their liabilities out of Syndicate Trust Funds, funds deposited at Lloyd's, reserves, and personal assets outside of Lloyd's. Every Lloyd's member makes an annual contribution to this fund.

A Lloyd's managing agent is a firm or company having complied with the requirements of the Council of Lloyd's for managing a syndicate (and that may also be a members' agent). Managing agents employ the underwriters.

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.