Glossary of Insurance Terms

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Lapsed policy

A policy terminated at the end of the grace period because of nonpayment of premiums and no value to be loaned against to cover the due premium.

Liability

Individual responsibility for causing, through negligence, injury to another person or damage to another person’s property.

Liability insurance

Insurance covering the policyholder’s legal liability for injuries to another person or damages to another person’s property for which the insured is legally liable.

Licensed health care practitioner

Any physician, registered nurse, licensed or certified social worker, or any other individual who meets such requirements as may be prescribed by the Secretary of the Treasury.

Lifetime benefit maximum

The total amount an insurance company will pay for health care services over your lifetime. If the cost of the benefits you receive since enrolling in a plan exceeds this amount, your coverage ends and no additional services will be covered.

Like kind and quality parts

Refers to the use of replacement parts which are of the same kind and quality as the original parts.