Glossary

Life expectancy concerns the average number of years a person of a certain age is expected to live as shown on an annuity table or mortality table.

The life income option is a life insurance settlement option under which a beneficiary may have policy proceeds converted to a life annuity for the beneficiary. Annuity payments are made during the beneficiary's life in an amount determined by the life expectancy at the time the settlement is chosen after the death of the insured.

The life income with period certain option is a life insurance settlement option under which a beneficiary may have policy proceeds converted to a life annuity for the beneficiary with the benefit period based on the beneficiary's life expectancy and payments that continue for that period of time whether or not the beneficiary lives.

Life insurance risk factors describe information about an individual that is needed to underwrite a life insurance policy, such as age, sex, weight, current health, medical history, height, tobacco use, and occupation. Statistically, life risk factors are related to an individual's lifespan. Some jurisdictions prohibit certain factors from being considered.

A life insurance trust is an agreement that provides for the placing of life insurance proceeds into a trust fund, which is administered by a trustee within the terms of the trust.

The Life Office Management Association (LOMA) is an educational organization that focuses on the life insurance business and develops administrative and technical courses.

Life underwriters professional liability insurance refers to a specialized professional liability insurance policy patterned after the insurance agents errors and omissions (E&O) policy that provides coverage for life insurance agents and general agents. This policy provides coverage for the insured life agent's liability for negligent acts, errors, or omissions in conduct of the business as an agent for the companies designated in a schedule attached to the policy. Coverage is provided on a claims-made basis.

The Life Underwriter Training Council (LUTC) is an organization that prepares and administers life insurance underwriter training programs.

Lilly Ledbetter Fair Pay Act of 2009 is a federal law amending the Civil Rights Act of 1964 and stating that the 180-day statute of limitations for filing an equal pay lawsuit begins to run with each new discriminatory paycheck. The law is intended to overturn the US Supreme Court's ruling in Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618, 127 S. Ct. 2162, 167 L. Ed. 982 (2007), in which the court held that the statute of limitations for presenting an equal pay lawsuit begins to run on the date on which the initial discriminatory pay level was agreed, not on the date of the most recent paycheck, as a lower court had ruled. The Act was intended to clarify the intent of Title VII as it pertains to discriminatory pay decisions. Accordingly, the statute enables female workers to litigate allegedly discriminatory pay decisions that were made many years in the past, irrespective of the requirement that a claim be filed within 180 days of a discriminatory act.

Limit in an insurance context is the maximum amount an insurance policy or reinsurance agreement can be called on to pay for a specified coverage. There are many approaches to structuring limits that vary by line of coverage and even different aspects of the coverage provided within a particular line of coverage. With liability insurance, limits are generally expressed either on a per occurrence basis (e.g., per accident or event) or on an aggregate basis (e.g., all losses under a single policy, or for all policies during an underwriting period). With property insurance, a limit may apply to each insured property or on a blanket basis across all insured properties.