| LAPSE | The termination of a policy due to the non-payment of premium. |
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| Lapsed Policy | A terminated policy due to non-payment of premium. |
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| Last clear chance rule | Refer contributory negligence. A modification where the claimant is in danger of his own negligence to recover damages from a defendant if the defendant has a last clear chance to avoid the accident but fails to do so. |
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| Last Survivor Life Insurance | Whole life insurance that covers two persons and provides for payment of the proceeds when both insured have died. It is generally designed to pay estate taxes. Also known as second-to-die life insurance. |
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| Law of large numbers | Concept that the greater the number of exposures, the more closely will actual results approach the probable results expected from an infinite number of exposures. |
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| Level Premiums | Premiums that remain the same each year that the life insurance policy is in force. |
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| Level Term Insurance | A type of term insurance that provides a death benefit that remains the same during the term of coverage. |
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| Liability coverage | Third Party liability under Motor Car Insurance; manufacturers liability to pay the customer for deficiency in services/product. |
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| Loading | The amount added to the pure premium for meeting expenses, profits and solvency margin. |
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| Loan amortisation | Loan is repaid in equal periodic say half-yearly, instalments paying inerest and principal repayment. |
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| Long position | In futures contract, a buyer is committed to purchase an item at the contracted price on maturity. |
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| Loss control | Risk management measures that cut down frequency and severity of losses. |
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| Loss frequency | No. of claims in the policy year |
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| Loss Serenity | Impact of loss. |
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