Cheapest Insurance 2020

loss reserve: The liability recorded on the balance sheet for unpaid losses. The loss reserve consists of the case basis reserve, the reserve for claims known to the company but not yet paid; and the reserve for incurred but not reported losses (IBNR). IBNR in residential mortgage insurance is a small amount compared to IBNR in many long-tail property-casualty lines of business and consists mainly of an estimate of the aggregate dollar amount of currently delinquent mortgages which will remain delinquent or go to claim in a short period of time, causing the establishment or increase of case basis reserves for those mortgages.

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loss ratio: The ratio of losses incurred and loss expenses incurred to net premiums earned.

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loss mitigation: Practices and procedures that usually do not involve foreclosure carried out with delinquent borrowers with the goal of reducing loss. Examples are pre-foreclosure sales and adding missed interest payments to the principal amount of the mortgage. Loss mitigation, and, more generally, claims handling are performed by lender-servicers, the GSEs and the insurers themselves.

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long-term disability income insurance (LTD): Plan that helps replace income lost through inability to work because of disability caused by an accident or illness.

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long term care insurance: A health-insurance variation designed to cover the costs of long term care at home or in a nursing home. These policies may offer a specified nursing home benefit and home-care benefit. Some policies also account for inflation at additional cost. The popularity of long term care insurance has grown as federal laws have changed, making it less likely that Medicaid will pick up the tab for long term care. These policies are usually rather expensive, and grow even more costly as the policyholder ages.

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long term care: A continuum of maintenance, custodial, and health services for the chronically ill or disabled. Such services may be provided on an inpatient (rehabilitation facility, nursing home, mental hospital) or outpatient basis, or at home.

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load: Any sales fees or charges paid in purchasing an annuity contract.

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living benefits: Some life insurance companies title their accelerated death benefits as a “living benefit” or “living needs benefit” because excercising that option allows the insured to receive a portion of the life insurance death benefit while living.

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liquidity ratio: Standard & Poor’s measure of an insurer’s liquidity.

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liquidity margin of safety: The ratio of liquidity resources (liquid investments, net operating cash flow, risk-adjusted soft capital) to liquidity exposure (unanticipated defaults on principal and interest, unanticipated draws on DSR surety policies, and municipal investment contracts (MICs) and deal-specific liquidity.)

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