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Glossary

A B C D E H I L M O P R S U W

Letter of Variation

An amendment of a policy or endorsement and is intended for adding, deleting and updating of the variables in the policy or the endorsement.

Limited Liability Company (LLC)

A corporate structure, mainly in USA, whereby the members of the company cannot be held personally liable for the company's debts or liabilities. It is a hybrid business entity having certain characteristics of both a corporation and a partnership/sole proprietorship.

Liquidation

This is process of “winding-up” or terminating a company, usually but not always, because of insolvency. The process involves the appointment of a Liquidator to sell off all the assets of the company, paying all the liabilities of the company, so far as possible, and distributing any remaining funds, if any, to the owners (shareholders). Liquidation may be Compulsory – as a result of a Court order, or Voluntary – following a meeting and resolution of the shareholders.

Liquidator

The person duly appointed to wind-up and settle the affairs of a company being would-up, the person usually being a qualified accountant of solicitor.

Liquidity

The excess of current assets over current liabilities in the balance sheet.

Loss Payee

A party to whom the policyholder has transferred its legal rights to receive a claim payment under a policy.