Liability Limit
The maximum an insurer will pay for a covered claim, stated per person and per occurrence.
Why it matters: Damages above the limit are the defendant's personal exposure and are often uncollectible.
Run the car accident settlement →10 terms
Dictionary — L
Liability Limit, Lien, Lifetime Value, Loan-to-Value and more. Each definition explains what the term means and why it changes a number.
Lien
A legal claim against your settlement by a health insurer, hospital or government payer who paid your treatment.
Why it matters: Liens are routinely reducible, and negotiating them before signing is where a good settlement becomes a better one.
Run the attorney fee & net recovery →Lifetime Value
The gross-margin profit expected from a customer over the whole relationship.
Why it matters: Divided by acquisition cost, it is the single ratio that decides whether spending more on marketing is sane.
Run the cac & ltv →Loan-to-Value
The loan balance as a percentage of the property value.
Why it matters: Crossing below eighty percent is what removes private mortgage insurance from the payment.
Run the mortgage payment →Loss of Consortium
A claim by a spouse or family member for the loss of companionship and services caused by an injury.
Why it matters: It is a separate claim with its own value, frequently overlooked in early negotiations.
Run the wrongful death claim →Lapse
Termination of a policy for non-payment of premium.
Why it matters: A lapse in a claims-made policy can leave past work uncovered even if nothing has gone wrong yet.
Run the life insurance needs →Latent Defect
A problem not discoverable by reasonable inspection at the time of purchase.
Why it matters: It is the main basis for a claim against a seller after closing, and it is hard to prove.
Run the home sale net proceeds →Life Care Plan
A costed year-by-year schedule of the medical care and support an injured person will need for life.
Why it matters: In catastrophic injury claims it is the single document that determines the economic value.
Run the birth injury claim →Loss Ratio
Claims paid divided by premiums earned, the core measure of an insurer's underwriting result.
Why it matters: Rising regional loss ratios are why premiums increase for people who never claimed.
Run the auto insurance cost →Loss Run
A report of a policyholder's claims history over recent years.
Why it matters: Insurers price from it, so understanding what it shows explains a quote you disagree with.
Run the auto insurance cost →Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.