Glossary

Layering is the building of a program of insurance coverage using the excess of loss approach.

LC5 refers to the median level concentration, a standard measure of toxicity. It tells how much of a substance is needed to kill half of a group of experimental organisms in a given time.

LD50 refers to the dose of a toxicant that will kill 50 percent of the test organisms within a designated period. The lower the LD50, the more toxic the compound is.

Leading involves guiding, leading, and motivating others to achieve plans.

Lead reinsurer refers to the reinsurer that negotiates the terms, conditions, and premium rates and first signs on to the line slip; reinsurers that subsequently sign on to the same slip are considered following reinsurers and are bound by the same terms and conditions to which the lead reinsurer agreed.

The term lead umbrella refers to the first umbrella policy in a multilayer excess program that sits directly over the primary policies.

Lean construction takes the principles of lean production and applies them to the construction process.

Leasehold interest refers to property insurance covering the loss suffered by a tenant due to termination of a favorable lease because of damage to the leased premises by a covered cause.

Lease gap coverage is an optional coverage endorsement to a commercial auto policy that applies in the event of a total loss to a covered auto that is financed or has a leased agreement.

Legal action against insurer is a provision in most standard insurance coverage forms that imposes certain limitations on an insured's right to sue the insurer for enforcement of the policy.