Limits Under Multiple Policy Years (lump)
Definition of "Limits under multiple policy years (lump)"
Single limit insurance program remaining in force for several years as compared with traditional insurance programs where there is a series of annual limits. The LUMP insurance program is most effective in those instances where the statistical analysis shows low-frequency, short-tail (length of time elapsed between the act giving rise to the claim and when the claim is recognized or reported to the insurance company) risks that have a potential for catastrophic loss. LUMP insurance programs provide insurance coverages for such exposures as marine liability, directors and officers liability, general liability, and workers compensation.
Popular Insurance Terms
Time during which an assessment life insurance company has the right to assess policyholders if losses are worse than anticipated in the premium charged. ...
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Licensed agent's signature on an insurance policy. ...
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