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Term
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Definition
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labor contractor
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generic term for businesses that lease employees to other businesses; these labor contractors (PEOs, temporary agencies, and so forth) are the general employer; their clients are the special employer
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Labor Contractor Endorsement
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endorsement to the WC policy where the labor contractor’s client provides coverage for the general employer
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Labor Contractor Exclusion Endorsement
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exclusion endorsement to the WC policy where the labor contractor’s employees leased to the special employer are not covered under the Labor Contractor’s WC policy
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large deductible plan
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A WC policy where the employee reimburses the insurer for most claim payments
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last injurious exposure rule
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for WC, a rule in some jurisdictions that requires the employer or insurer at the time of the last exposure to the cumulative trauma to pay all WC benefits for the injury
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late notice
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delay in the employer's first report of injury to the claim administrator
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leased employee / leased worker
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special employment situation where a general employer who exercises more control over the means and methods of the worker leases that worker to this employer – generally more formal and of longer duration than a loaned employee
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letter of credit
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often required by the insurer as collateral for retrospectively rated or large deductible plans
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life pension
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for WC, a wage replacement benefit paid in some states for cases of more serious permanent disability
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light duty
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older term for modified duty; part of an employer’s return to work program
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limit of liability
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the maximum amount that an insurance coverage will pay; for WC, Part One has no limit of liability but Part Two (employers liability) does have limits of liability
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limited liability company (LLC)
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business organized under specific state laws for LLCs; not the same as a corporation; many small businesses are organized as LLCs; LLCs are run by members, managers, and/or member-managers
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litigation management
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strategies and tactics of a claim administrator to generate quality, cost-effective outcomes on claims requiring legal services
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loaned employee / loaned worker
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special employment situation where a general employer who exercises more control over the means and methods of the worker loans that worker to this employer – generally less formal and of short duration than a leased employee arrangement
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location coding
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claim coding that identifies the specific areas or units of the employer’s business where WC losses occurred; allows the employer and its insurer to target loss control efforts
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long-term disability coverage (LTD)
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wage replacement insurance for disabilities that are NOT paid by WC
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long-term policy clause
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WC policy provision, when the covered time period is more than one year, that says that the annual renewal automatically contains all the provisions of the original policy
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longshore
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see Longshore and Harbor Workers Compensation Act
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Longshore and Harbor Workers Compensation Act (L&HWCA)
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federal statute that provides benefits for injured longshore and harbor workers – coverage can be endorsed to the standard WC policy or written separately
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Longshore and Harbor Workers Compensation Act Coverage Endorsement
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endorsement to WC policy that covers the Longshore and Harbor Workers Compensation Act
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loss control
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collaborative efforts between insurers and employers to prevent and minimize losses
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loss conversion factor (LCF)
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term used in a retrospective rating plan – this factor is applied to the losses in the formula to give the insurer the funds needed to administer the claims
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loss development factor (LDF)
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this factor allows for the subsequent development of losses and late reported claims – the factor was introduced primarily because of the effect of inflation on losses which take a long time to settle
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loss history
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for WC, one of the factors that determines what premium the insurer will charge the employer
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loss limitation
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term used in a retrospective rating plan – it limits the effect of catastrophic losses that would otherwise be fully considered in computing the final retrospective premium
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loss of consortium claim
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an “add-on” claim made by a family member for loss of services or companionship provided by the injured worker; not covered by Part One state WC benefits but covered under Part Two when employers liability coverage applies
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loss of earning capacity
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for WC, the difference between what the worker could have been reasonably expected to earn prior to the injury and after the injury as a result of permanent disability
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loss ratio
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the ratio of losses to premium
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loss run
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a list of the WC losses that occurred during the policy period; loss runs typically contain summary information about both payments and reserves
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loss-sensitive WC program
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any WC policy other than one with a guaranteed cost; includes dividend plans, retrospective rated policies, and large deductible programs
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lump sum payment
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payment of an award or settlement all at one time instead of periodic payments
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