Glossary

A limited health benefit plan is one that restricts covered services to a medical specialization or a group of related specializations, such as psychology and family counseling.

A limited liability company (LLC) is a legal entity seeking to realize the benefits of both a corporate and a partnership legal structure.

A limited life and health insurance company is one that issues nonassessable policies with limited benefits.

A limited life insurance policy is a life insurance policy that pays benefits only if the insured dies from a specified cause (e.g., cancer or auto accident).

Limited losses are amounts of losses whereby the size of individual claims is limited to a particular value, for example, $500,000.

Limited Mexico Coverage (CA 01 21) endorsement is a standard endorsement used with the business auto policy (BAP) to provide limited excess coverage for autos taken across the Mexico border.

Limited payment life insurance refers to a life insurance policy that covers the insured's entire life with premium payments required only for a specified period of years.

A limited severability provision in an application for directors and officers (D&O) liability insurance states that knowledge possessed by any insured persons, other than the signer of the application or certain executive officers (usually the CEO, COO, and CFO), will not be imputed to other insureds in a claim situation.

A limits reduction provision is used in connection with uninsured and underinsured motorists (UM/UIM) coverage referring to limit of insurance provisions that set out how UM/UIM coverage is affected by the existence of other types of coverage (e.g., auto medical payments, workers compensation) that may apply as well.

Limits under multiple policy years is an approach to structuring limits for insurance programs covering low-frequency but high-potential-severity exposures, such as excess liability (over commercial general liability (CGL) policies), pollution liability, and directors and officers (D&O) liability.