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Insurance Glossary L - M
L
Lapse – Termination of a policy because the premium has not been paid by the end of the grace period.
Law of Large Numbers – A principle stating that the larger the number of similar exposure units considered,
the more closely the losses reported will equal the underlying probability of loss.
Level Premium – A policy premium that remains the same over the period of time premiums are paid.
Life Expectancy – Average number of years remaining for a person of a given age to live, as shown on the
mortality table.
Limited-Pay Whole Life – A variation of whole life insurance that charges a level annual premium and
provides a level, guaranteed death benefit to the insured’s age 100 and will endow for the face amount if the
insured lives to age 100. Limited-pay life is designed so that the premiums for coverage will be completely
paid-up well before age 100.
Limited Policies - Health insurance policies that cover only specific accidents or diseases.
Limiting Charge – The maximum amount a physician may charge a Medicare beneficiary for a covered
service if the physician does not accept assignment of the Medicare approved amount.
Liquidation – Selling assets as a method of raising capital.
Living Benefits Rider – A rider attached to a life insurance policy that provides LTC benefits or benefits for
the terminally ill by using available life insurance benefits.
Lloyd’s Associations – Organizations that provide support facilities for underwriters or groups of individuals
that accept insurance risk.
Loan Value – The amount of money an insured can borrow using the cash value of his/her life insurance
policy as collateral.
Long-Term Care (LTC) – Health and social services provided under the supervision of physicians and
medical health professionals for persons with chronic diseases or disabilities. Care is usually provided in a
Long-Term Care Facility which is a state licensed facility that provides services.
Long-Term Disability Insurance – A type of individual or group insurance that provides coverage for illness
until the insured reaches age 65 and for life in the case of an accident.
Loss – The reduction, decrease, or disappearance of value of the person or property insured in a policy, by
a peril insured against.
Loss of Income Insurance – Insurance that pays benefits for inability to work because of disability resulting
from accidental bodily injury or sickness.
Lump Sum – Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in
one payment rather than in installments.
M
Major Medical Insurance – A type of health insurance that usually carries a large deductible and pays
covered expenses up to a high limit whether the insured is in or out of the hospital.
Maturity Date –The date when the face amount of the life insurance becomes payable.
Medicaid – A medical benefits program jointly administered by the individual states and the federal
government.
Medical Expense Insurance – A type of insurance that pays benefits for medical, surgical, and hospital
costs.
Medical Information Bureau (MIB) - An information database that stores the health histories of individuals
who have applied for insurance in the past. Most insurance companies subscribe to this database for
underwriting purposes.
Medical Savings Account – An employer-funded account linked to a high deductible medical insurance
plan.
Medicare – The United States federal government plan for paying certain hospital and medical expenses for
persons who qualify.
Medicare Supplement Insurance – A type of individual or group insurance that fills the gaps in the
protection provided by Medicare, but that cannot duplicate any Medicare benefits.
Medigap – Medicare supplement plans issued by private insurance companies that are designed to fill some
of the gaps in Medicare.
Misrepresentation – A false statement or lie that can render the contract void.
Mode of Payment – The method of premium payment, whether annually, semiannually, quarterly, or monthly.
Morbidity Rate – The ratio of the incidence of sickness to the number of well persons in a given group of
people over a given period of time.
Morbidity Table (Health) – A table showing the incidence of sickness at specified ages.
Mortality Table (Life) – A table showing the probability of death at specified ages.
Multiple-Employer Trust (MET) – A group of small employers who do not qualify for group insurance
individually, formed to establish a group health plan or self-funded plan.
Multiple Employer Welfare Association (MEWA) – Any entity of at least two employers, other than a duly
admitted insurer, that establishes an employee benefit plan for the purpose of offering or providing accident
and sickness or death benefits to the employees.
Mutual Companies – Insurance organizations that have no capital stock, but are owned by the
policyholders.
L
Lapse – Termination of a policy because the premium has not been paid by the end of the grace period.
Law of Large Numbers – A principle stating that the larger the number of similar exposure units considered,
the more closely the losses reported will equal the underlying probability of loss.
Level Premium – A policy premium that remains the same over the period of time premiums are paid.
Life Expectancy – Average number of years remaining for a person of a given age to live, as shown on the
mortality table.
Limited-Pay Whole Life – A variation of whole life insurance that charges a level annual premium and
provides a level, guaranteed death benefit to the insured’s age 100 and will endow for the face amount if the
insured lives to age 100. Limited-pay life is designed so that the premiums for coverage will be completely
paid-up well before age 100.
Limited Policies - Health insurance policies that cover only specific accidents or diseases.
Limiting Charge – The maximum amount a physician may charge a Medicare beneficiary for a covered
service if the physician does not accept assignment of the Medicare approved amount.
Liquidation – Selling assets as a method of raising capital.
Living Benefits Rider – A rider attached to a life insurance policy that provides LTC benefits or benefits for
the terminally ill by using available life insurance benefits.
Lloyd’s Associations – Organizations that provide support facilities for underwriters or groups of individuals
that accept insurance risk.
Loan Value – The amount of money an insured can borrow using the cash value of his/her life insurance
policy as collateral.
Long-Term Care (LTC) – Health and social services provided under the supervision of physicians and
medical health professionals for persons with chronic diseases or disabilities. Care is usually provided in a
Long-Term Care Facility which is a state licensed facility that provides services.
Long-Term Disability Insurance – A type of individual or group insurance that provides coverage for illness
until the insured reaches age 65 and for life in the case of an accident.
Loss – The reduction, decrease, or disappearance of value of the person or property insured in a policy, by
a peril insured against.
Loss of Income Insurance – Insurance that pays benefits for inability to work because of disability resulting
from accidental bodily injury or sickness.
Lump Sum – Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in
one payment rather than in installments.
M
Major Medical Insurance – A type of health insurance that usually carries a large deductible and pays
covered expenses up to a high limit whether the insured is in or out of the hospital.
Maturity Date –The date when the face amount of the life insurance becomes payable.
Medicaid – A medical benefits program jointly administered by the individual states and the federal
government.
Medical Expense Insurance – A type of insurance that pays benefits for medical, surgical, and hospital
costs.
Medical Information Bureau (MIB) - An information database that stores the health histories of individuals
who have applied for insurance in the past. Most insurance companies subscribe to this database for
underwriting purposes.
Medical Savings Account – An employer-funded account linked to a high deductible medical insurance
plan.
Medicare – The United States federal government plan for paying certain hospital and medical expenses for
persons who qualify.
Medicare Supplement Insurance – A type of individual or group insurance that fills the gaps in the
protection provided by Medicare, but that cannot duplicate any Medicare benefits.
Medigap – Medicare supplement plans issued by private insurance companies that are designed to fill some
of the gaps in Medicare.
Misrepresentation – A false statement or lie that can render the contract void.
Mode of Payment – The method of premium payment, whether annually, semiannually, quarterly, or monthly.
Morbidity Rate – The ratio of the incidence of sickness to the number of well persons in a given group of
people over a given period of time.
Morbidity Table (Health) – A table showing the incidence of sickness at specified ages.
Mortality Table (Life) – A table showing the probability of death at specified ages.
Multiple-Employer Trust (MET) – A group of small employers who do not qualify for group insurance
individually, formed to establish a group health plan or self-funded plan.
Multiple Employer Welfare Association (MEWA) – Any entity of at least two employers, other than a duly
admitted insurer, that establishes an employee benefit plan for the purpose of offering or providing accident
and sickness or death benefits to the employees.
Mutual Companies – Insurance organizations that have no capital stock, but are owned by the
policyholders.
| Trout Insurance is a full line insurance agency located in Asheville, NC. Trout Insurance offers life, health, disability, Medicare supplement, long term care insurance home and auto insurance for individuals as well as college funding and retirement planning. Christopher Smith, Dave Trout, Jan Trout and Ralph Redpath are independent insurance agents with Trout Insurance. Christopher Smith specializes in group health insurance, employee benefits, insurance needs for business owners, key person disability insurance, disability buy out insurance, individual life insurance, short term health insurance, disability insurance, long term care insurance, group long term care insurance and critical illness insurance. Dave Trout specializes in life and disability insurance, Medicare supplement insurance, retirement planning for individuals and businesses, commercial business insurance and college funding. Jan Trout specializes in individual health insurance. Ralph Redpath specializes in home and auto coverage. Web site design by Christopher Smith. Agency photo by Jason Sanford. |
