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
Addition to reflect exposures with a greater probability of loss than standard exposures. For example, insuring a munitions factory obviously requires a premium greater than that required ...
Acknowledgment by the policyowner that he or she has received the policy loan requested. ...
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Assumption of total disability when an insured loses sight, hearing, speech, or a limb. When such a loss occurs to an insured with disability income insurance, the insurer often assumes ...
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