Term

Definition

labor contractor

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

Labor Contractor Endorsement

endorsement to the WC policy where the labor contractor’s client provides coverage for the general employer

Labor Contractor Exclusion Endorsement

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

large deductible plan

A WC policy where the employee reimburses the insurer for most claim payments

Larson, Arthur

leading legal authority on WC who died in 1993 - his Larson’s Workmen’s Compensation Law is frequently cited in court decisions

last injurious exposure rule

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

last-offer litigation

in some states, the hearing officer must choose one of the permanent impairment ratings offered by the doctors for the claim and cannot split or otherwise compromise between the rates

late notice

delay in the employer's first report of injury to the claim administrator

leased employee / leased worker

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

letter of credit

often required by the insurer as collateral for retrospectively rated or large deductible plans

level floor fall

one kind of idiopathic injury (unexplained accident) that is compensable in some jurisdictions but not in others

life pension

for WC, a wage replacement benefit paid in some states for cases of more serious permanent disability

light duty

older term for modified duty; part of an employer’s return to work program

limit of liability

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

limited liability company (LLC)

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

litigation management

strategies and tactics of a claim administrator to generate quality, cost-effective outcomes on claims requiring legal services

loaned employee / loaned worker

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

location coding

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

long-term disability coverage (LTD)

wage replacement insurance for disabilities that are NOT paid by WC

long-term policy clause

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

longshore

see Longshore and Harbor Workers Compensation Act

Longshore and Harbor Workers Compensation Act (L&HWCA)

federal statute that provides benefits for injured longshore and harbor workers – coverage can be endorsed to the standard WC policy or written separately

Longshore and Harbor Workers Compensation Act Coverage Endorsement

endorsement to WC policy that covers the Longshore and Harbor Workers Compensation Act

loss control

collaborative efforts between insurers and employers to prevent and minimize losses

loss conversion factor (LCF)

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

loss development factor (LDF)

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

loss history

for WC, one of the factors that determines what premium the insurer will charge the employer

loss limitation

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

loss of consortium claim

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

loss of earning capacity

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

loss ratio

the ratio of losses to premium

loss run

a list of the WC losses that occurred during the policy period; loss runs typically contain summary information about both payments and reserves

loss-sensitive WC program

any WC policy other than one with a guaranteed cost; includes dividend plans, retrospective rated policies, and large deductible programs

lump sum payment

payment of an award or settlement all at one time instead of periodic payments