Glossary

Libel is the written publication of untrue, defamatory statements that lower a person's esteem in their community and that gives rise to a legal cause of action against the publisher. Standard commercial general liability (CGL) insurance policies apply to slander and libel claims made against the insured. Libel is distinguishable from slander in that libel refers to defamatory statements that are written, while slander refers to defamatory statements that are spoken.

A liberalization clause is a provision that extends to persons already insured under a particular policy the broadened coverage features that may be introduced in subsequent editions of that policy form. In umbrella liability insurance, a clause specifying that coverage will be as broad as that provided by the primary liability policies.

A license in an insurance context is a certification of appropriate authority issued by a regulatory body to allow an entity to operate as an insurer or an insurance agent after certain standards have been met.

A licensee is a party who enters property with the express or implied-in-fact permission of the occupier. The occupier has a duty to warn the licensee of any unsafe condition or activities on the premises and to refrain from causing deliberate harm. The owner or occupant does not have a duty to inspect the premises for the benefit of the licensee. A licensee takes the premises as they find them. The property owner or occupant does not owe the licensee as high of a degree of care as they owe to the invitee. Unlike a licensee, an invitee is a party who gives some material benefit to the property owner, such as a neighbor who helps the homeowner with a household task. Typical licensees include solicitors for religious or charitable organizations, door-to-door salespersons, and social guests in nearly all jurisdictions.

A license and permit bond is one that is required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will comply with applicable laws or regulations. These bonds can also be structured to provide indemnity guarantees to third parties who sustain injury or damage as a result of the obligor's activities as described in the license or permit when such a guarantee is required. For example, businesses that hang signs over public sidewalks may be required to provide indemnity guarantees for injuries to pedestrians.

A licensed insurer is an insurer that is granted a license to operate within a state. This can be an insurer domiciled in the state or an insurer domiciled in another state. Insurers operating in multiple states must generally undergo similar scrutiny in each state where they are licensed.

A lien is a legal claim against or financial interest in the property of another, usually created by having performed work on or advanced funds in connection with the property.

The lifetime disability benefit is a long-term disability insurance policy that continues payments until the death of the insured. Most long-term disability policies end payments when the insured reaches 65 years of age.

The lifetime limit is the maximum dollar benefit an individual may receive under a health insurance policy or plan. An example of a lifetime benefit would be a total lifetime dollar limit on benefits (such as $1 million) or limits on specific benefits (such as a $200,000 lifetime cap on organ transplants or one gastric bypass per lifetime) or a combination of the two. Once a lifetime limit is reached, the insurance plan will no longer pay for covered services.

A lifetime policy is a life insurance or disability insurance policy that is noncancelable or is guaranteed renewable, usually for as long as the insured lives. Some lifetime policies terminate when the insured reaches a specified age (e.g., 65).