::Glossary (L)::

a b c d e f g h i j k l m n o p q r s t u v w x y z

Lead Insured The principle policyholder where there is more than one policyholder endorsed to the policy.

Leveraged Buy Out Where the ownership of a company changes through a party or number of parties acquitting the controlling interest of the company using a high level of debt. Some consultancy firms are beginning to specialise in this field.

Limited Liability The liability of the shareholders in a limited company, Private or Public, is limited to the face of the shares held. If therefore, the shares are fully paid, the shareholder has no liability for the debts of the company.

Limited Liability Company A company formed to carry on a trade or business where the shareholders ("owners") responsibility for the debts of the company is limited to the nominal value of the shares they hold in the company.

Liquidation The process whereby a company has its assets realised and distributed to satisy its liabilities and to repay its shareholders.

Loss Ratio Claims for a policy period (including reserves set) as a percentage of premium earned for the same period.

Losses Arising Cover only applying to losses arising out of deliveries made (etc) during the policy period. This is standard for the vast majority of policies.