This glossary is for non-commercial educational purposes only. The
definition of the
terminology below is only a brief description and should not be considered factual or
the only definition possible. This information is only to help better inform you
of information related to liquidations.
A claim filed against an insolvent insurer after the claim filing deadline established by the Liquidation Court. A late filed claim generally receives a lower priority than timely filed claims.
Legal Reserve
The minimum reserve which an insurance company must keep to meet future claims and obligations, as calculated under their state insurance code.
Liability Insurance
Insurance covering the legal liability of an insured person resulting from injuries to a third party to their body or damage to their property.
Life Insurance
A form of insurance on the life of a human being; may include related coverages.
Liquidation
The dissolution of a company by selling its assets for cash and distributing the resulting cash to creditors.
Liquidator
A person, usually the Superintendent of Insurance, who has the responsibility of overseeing the liquidation of the insurance company estates.
Loss
The happening of the event for which insurance pays.
Loss Reserve
An amount set up as the estimated cost on specific, reported claims that are the insurance company's best estimate of the amount ultimately to be paid for the loss.
