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Glossary L

Lack of access to employer-sponsored training programs

A situation where an employee does not have access to training programs provided by their employer.

  1. Actuary: Full-Time Vs Contract Work (Explained)

Lack of benefits

A situation where an employee does not receive the same benefits as other employees.

  1. Actuary: Full-Time Vs Contract Work (Explained)

Language barriers

Obstacles to communication caused by differences in language and culture.

  1. How To Navigate The Actuarial Exam Process As An International Student
  2. Actuary: Domestic Vs International Practice (Explained)

Law of large numbers

A statistical principle that states that the larger the sample size, the more accurate the results.

  1. Risk Management Vs. Actuarial: Career Paths (Defined)

Leadership positions

Jobs that require leadership skills and experience.

  1. 5 Surprising Benefits Of Being An Actuary
  2. Actuarial Analyst: Entry-Level Vs Senior Roles (Decoded)
  3. Actuary: Traditional Vs Non-Traditional Roles (Unpacked)

Leadership roles

Positions of authority and responsibility within an organization.

  1. Actuary: Private Sector Vs Government Jobs (Clarified)
  2. Actuary: Part-Time Vs Full-Time Roles (Compared)
  3. How Can Senior-Level Actuaries Maximize Their Earning Potential in High-Paying Industries? (9 Simple Questions Answered)
  4. Actuary: Full-Time Vs Contract Work (Explained)
  5. Actuary: Traditional Vs Non-Traditional Roles (Unpacked)

Leadership training

Programs designed to develop leadership skills in aspiring actuaries.

  1. Actuary: Private Sector Vs Government Jobs (Clarified)
  2. Actuary: In-House Vs Consulting Firm (Clarified)
  3. What Resources are Available Through Actuarial Alumni Associations? (10 Important Questions Answered)
  4. How Can I Take Advantage of Educational Assistance Through a Senior-Level Actuarial Compensation Package? (9 Simple Questions Answered)

Learning objectives

Goals for acquiring knowledge and skills necessary to become an actuary.

  1. SOA Vs. CAS: Actuarial Certifications (Decoded)

Legal and regulatory framework

The laws and regulations that govern the actuarial profession and its practices.

  1. Actuary: Reinsurance Vs Direct Insurance (Explained)
  2. Actuary: Workers Compensation Vs Personal Injury (Defined)

Legal considerations

Factors that must be taken into account when making legal decisions, such as ethical considerations and potential legal consequences.

  1. Actuary: Small Firm Vs. Large Corporation (Unpacked)

Legal framework

The overall structure of laws and regulations that govern a particular country or region.

  1. Actuary: Domestic Vs International Practice (Explained)

Legal liability assessment

The process of evaluating an individual or organization’s legal liability in a particular situation.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Legal precedent research

The process of researching past legal cases to establish legal precedent and inform current legal decisions.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Legal requirements for specific industries or professions

Regulations that govern the practices and operations of particular industries or professions, such as healthcare or finance.

  1. Actuary: Personal Lines Vs Commercial Lines (Unpacked)

Legal requirements to carry certain types of insurance

Mandates that require individuals or organizations to carry specific types of insurance, such as auto insurance or workers’ compensation insurance.

  1. Property Vs. Casualty: Actuarial Fields (Compared)

Legal systems

The framework of laws and regulations that govern a particular country or region.

  1. Actuary: Domestic Vs International Practice (Explained)

Legal updates

Changes or developments in laws and regulations that affect a particular industry or profession.

  1. SOA Vs. CAS: Actuarial Certifications (Decoded)

Liability

Legal responsibility for damages or losses incurred by another party.

  1. Property Vs. Casualty: Actuarial Fields (Compared)
  2. 5 Surprising Ways Actuaries Use Statistics In Their Jobs
  3. What Does An Actuary Do? (9 Simple Questions Answered)
  4. Life Vs Non-Life: Actuarial Practice (Compared)
  5. Actuary: Personal Lines Vs Commercial Lines (Unpacked)
  6. Actuary: Workers Compensation Vs Personal Injury (Defined)
  7. How Can Financial Mathematics Assist Actuaries? (8 Most Common Questions Answered)
  8. How Does Financial Analysis Assist Actuaries? (9 Simple Questions Answered)
  9. How Does an Actuary Calculate an Actuarial Valuation? (10 Important Questions Answered)
  10. How Can Statistic Computing Help Actuaries? (9 Simple Questions Answered)
  11. How Do Statistical Models Help Actuaries? (8 Most Common Questions Answered)
  12. How Can Financial Modeling Help an Actuary Identify Potential Losses? (7 Core Questions Answered)
  13. SOA Vs. CAS: Actuarial Certifications (Decoded)
  14. Actuary: Domestic Vs International Practice (Explained)
  15. Risk Management Vs. Actuarial: Career Paths (Defined)
  16. Actuarial Analyst Vs. Actuary: Career Progression (Unpacked)
  17. What Training Do I Need To Become An Actuary? (10 Important Questions Answered)
  18. How Can I Use Mathematical Models to Become an Actuary? (10 Important Questions Answered)
  19. How Can Investment Analysis Assist an Actuary? (9 Simple Questions Answered)
  20. Actuary Vs Underwriter: Roles in Insurance (Explained)
  21. Actuary Vs. Accountant: Which Career Path Should You Choose?
  22. Actuary: Risk Assessment Vs. Risk Management (Clarified)
  23. Actuary: Private Sector Vs Government Jobs (Clarified)
  24. Actuary: Insurance Vs Financial Services (Explained)
  25. Actuary: Full-Time Vs Contract Work (Explained)
  26. Actuary: Consulting Vs Corporate Roles (Compared)
  27. Actuarial Science Vs Statistics: Degree Choices (Defined)
  28. How Can I Learn Accounting Principles to Become an Actuary? (10 Important Questions Answered)
  29. What Are the Most Important Economic Trends for an Actuary to Consider? (10 Important Questions Answered)
  30. 5 Common Misconceptions About The Actuarial Profession

Liability Coverage

The amount of financial protection provided by a liability insurance policy.

  1. Actuary: Personal Lines Vs Commercial Lines (Unpacked)
  2. Property Vs. Casualty: Actuarial Fields (Compared)

Liability-driven investment (LDI)

An investment strategy that seeks to match the cash flows of a liability stream, such as a pension plan, with a corresponding asset portfolio.

  1. Actuary Vs. Investment Banker: Which One Offers A Better Work-Life Balance?
  2. Actuarial Science Vs. Finance: Career Prospects (Unpacked)
  3. Actuary: Insurance Vs Financial Services (Explained)
  4. SOA Vs. CAS: Actuarial Certifications (Decoded)
  5. How Can Actuaries Utilize Investment Principles to Maximize Earnings? (9 Simple Questions Answered)
  6. Risk Management Vs. Actuarial: Career Paths (Defined)
  7. 5 Surprising Ways Actuaries Use Statistics In Their Jobs
  8. How Can Investment Analysis Assist an Actuary? (9 Simple Questions Answered)
  9. Actuary: Domestic Vs International Practice (Explained)
  10. How Can I Become a Financial Engineer? (10 Important Questions Answered)
  11. What Are the Risks Associated with Retirement Plans? (10 Important Questions Answered)
  12. Actuary: Traditional Vs Non-Traditional Roles (Unpacked)
  13. Pension Vs. Investment: Actuarial Focus (Defined)
  14. What Should I Know About Stock Options as a Senior-Level Actuary? (8 Most Common Questions Answered)
  15. 5 Ways Actuaries Use Data Visualization To Solve Real-World Problems
  16. How Can I Obtain Professional Qualifications as an Actuary? (10 Important Questions Answered)
  17. The Top Actuarial Certifications You Need To Boost Your Career
  18. Property Vs. Casualty: Actuarial Fields (Compared)
  19. How Long Does It Take to Become a Certified Actuary? (10 Important Questions Answered)
  20. What Does An Actuary Do? (9 Simple Questions Answered)
  21. Actuary: Consulting Vs Corporate Roles (Compared)
  22. How Can I Learn Accounting Principles to Become an Actuary? (10 Important Questions Answered)
  23. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  24. The Pros And Cons Of Pursuing An Actuarial Career
  25. How Long Does It Take to Complete an Actuarial Exam? (10 Important Questions Answered)
  26. How Can I Maximize My Earnings as an Actuary? (10 Important Questions Answered)
  27. How Do I Obtain Actuarial Qualifications? (8 Most Common Questions Answered)
  28. Actuarial Science Vs Statistics: Degree Choices (Defined)
  29. How Does an Actuary Calculate an Actuarial Valuation? (10 Important Questions Answered)
  30. Actuary: Catastrophe Modeling Vs. Traditional (Compared)
  31. Actuary: Risk Assessment Vs. Risk Management (Clarified)
  32. Actuary: In-House Vs Consulting Firm (Clarified)
  33. Actuary: Part-Time Vs Full-Time Roles (Compared)
  34. How To Transition From Accounting To Actuary
  35. Health Vs Life: Actuarial Specialties (Decoded)
  36. Actuary: Private Sector Vs Government Jobs (Clarified)
  37. How Does Financial Analysis Assist Actuaries? (9 Simple Questions Answered)
  38. Actuary Vs. Software Developer: Which Career Offers Better Work-Life Balance?
  39. Actuary: Reinsurance Vs Direct Insurance (Explained)
  40. Actuary Vs Data Analyst: Similarities and Differences (Clarified)
  41. Actuary Vs. Financial Analyst: Which Job Offers Better Career Growth?

Liability insurance

Insurance that provides financial protection to an individual or organization in the event of a legal claim or lawsuit.

  1. Actuary: Personal Lines Vs Commercial Lines (Unpacked)
  2. Actuary: Full-Time Vs Contract Work (Explained)
  3. Actuary: Reinsurance Vs Direct Insurance (Explained)
  4. Risk Management Vs. Actuarial: Career Paths (Defined)
  5. The Top Actuarial Certifications You Need To Boost Your Career

Liability management

  1. How Does an Actuary Calculate an Actuarial Valuation? (10 Important Questions Answered)
  2. How Does Financial Analysis Assist Actuaries? (9 Simple Questions Answered)
  3. How Can Financial Mathematics Assist Actuaries? (8 Most Common Questions Answered)
  4. Actuary: Insurance Vs Financial Services (Explained)
  5. How Can I Obtain Professional Qualifications as an Actuary? (10 Important Questions Answered)
  6. Actuarial Science Vs. Finance: Career Prospects (Unpacked)
  7. What Tools and Techniques Should an Actuary Use for Effective Data Manipulation? (10 Important Questions Answered)
  8. How Can Investment Analysis Assist an Actuary? (9 Simple Questions Answered)
  9. What Are The Best Career Paths For Actuaries? (10 Important Questions Answered)

Life expectancy

The average lifespan of an individual or group.

  1. Life Vs Non-Life: Actuarial Practice (Compared)
  2. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)
  3. Health Vs Life: Actuarial Specialties (Decoded)
  4. Pension Vs. Investment: Actuarial Focus (Defined)
  5. How Does an Actuary Calculate an Actuarial Valuation? (10 Important Questions Answered)
  6. Actuary: Consulting Vs Corporate Roles (Compared)
  7. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  8. What Are the Risks Associated with Retirement Plans? (10 Important Questions Answered)
  9. What Challenges Do Actuaries Face When Using Survival Models? (10 Important Questions Answered)

Life Expectancy Analysis

The process of analyzing life expectancy tables to estimate the lifespan of an individual or group.

  1. Life Vs Non-Life: Actuarial Practice (Compared)

Life expectancy tables

Statistical tables that estimate the average lifespan of individuals based on factors such as age, gender, and health status.

  1. Pension Vs. Investment: Actuarial Focus (Defined)

Life insurance

A type of insurance that provides financial protection to beneficiaries in the event of the insured’s death.

  1. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)
  2. SOA Vs. CAS: Actuarial Certifications (Decoded)
  3. Life Vs Non-Life: Actuarial Practice (Compared)
  4. Health Vs Life: Actuarial Specialties (Decoded)
  5. How Can Financial Mathematics Assist Actuaries? (8 Most Common Questions Answered)
  6. 5 Surprising Benefits Of Being An Actuary
  7. The Top Actuarial Certifications You Need To Boost Your Career
  8. Risk Management Vs. Actuarial: Career Paths (Defined)
  9. What Should I Look for in a Senior-Level Actuary Compensation Package? (9 Simple Questions Answered)
  10. Actuary Vs. Account Manager: Which Career Is More Rewarding?
  11. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  12. Actuary: Domestic Vs International Practice (Explained)
  13. Actuary: Consulting Vs Corporate Roles (Compared)
  14. Actuarial Technician Vs Actuary: Roles (Decoded)
  15. Actuarial Analyst Vs. Actuary: Career Progression (Unpacked)
  16. How Can I Learn Accounting Principles to Become an Actuary? (10 Important Questions Answered)
  17. What Are the Requirements for Becoming a Certified Actuary? (9 Simple Questions Answered)
  18. What Training Do I Need To Become An Actuary? (10 Important Questions Answered)

Life Insurance Contracts

Legal agreements between an individual and an insurance company that outline the terms and conditions of a life insurance policy.

  1. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)

Life insurance policy

  1. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)
  2. Life Vs Non-Life: Actuarial Practice (Compared)
  3. Health Vs Life: Actuarial Specialties (Decoded)
  4. How Can I Take Advantage of Educational Assistance Through a Senior-Level Actuarial Compensation Package? (9 Simple Questions Answered)
  5. Actuarial Technician Vs Actuary: Roles (Decoded)
  6. What Are the Most Important Economic Trends for an Actuary to Consider? (10 Important Questions Answered)
  7. Pension Vs. Investment: Actuarial Focus (Defined)
  8. How Do Statistical Models Help Actuaries? (8 Most Common Questions Answered)
  9. The Top 10 Companies Hiring Actuaries In 2023

Lifelong learning

The ongoing process of acquiring knowledge and skills throughout one’s life.

  1. Actuary: Traditional Vs Non-Traditional Roles (Unpacked)

Lifestyle factors

Environmental and social factors that influence an individual’s health and well-being, such as access to healthcare and social support.

  1. Actuary: Auto Insurance Vs Health Insurance (Explained)
  2. Life Vs Non-Life: Actuarial Practice (Compared)

Lifestyle habits

Behaviors and choices that affect an individual’s health and well-being, such as diet, exercise, and smoking.

  1. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)
  2. Health Vs Life: Actuarial Specialties (Decoded)

Lifetime limits

The maximum amount of benefits that an insurance policy will pay out over the course of an individual’s lifetime.

  1. Health Vs Life: Actuarial Specialties (Decoded)

Limited job security

The lack of assurance that a job will be secure or stable over a long period of time.

  1. Actuary: Full-Time Vs Contract Work (Explained)
  2. Actuary: Part-Time Vs Full-Time Roles (Compared)

Linear programming

A mathematical optimization technique used to maximize or minimize a linear objective function subject to linear constraints.

  1. Actuarial Science Vs Mathematics: Degree Value (Defined)

Liquidity management

The process of managing cash flow and ensuring that an organization has enough liquid assets to meet its financial obligations.

  1. Life Vs Non-Life: Actuarial Practice (Compared)

Litigation analysis

Litigation analysis – The process of analyzing the potential costs and outcomes of legal proceedings.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Litigation Costs

Litigation Costs – The costs associated with legal proceedings.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Location of business operations

Location of business operations – The physical location of an insurance company’s operations.

  1. Actuary: Personal Lines Vs Commercial Lines (Unpacked)

Logistic regression

Logistic regression – A statistical method used to model the relationship between a binary outcome and one or more predictor variables.

  1. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  2. How Does an Actuary Utilize Data Mining to Identify Potential Losses? (10 Important Questions Answered)

Log-normal distribution

Log-normal distribution – A probability distribution commonly used in actuarial science.

  1. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  2. How Can I Improve My Financial Modeling Skills Using Statistical Techniques? (9 Simple Questions Answered)

Longevity Risk

Longevity Risk – The risk of outliving one’s retirement savings.

  1. Health Vs Life: Actuarial Specialties (Decoded)

Long-term care rider

Long-term care rider – An add-on to an insurance policy that covers long-term care expenses.

  1. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)

Long-term contract

Long-term contract – A contract that extends over a long period of time.

  1. Actuary: Full-Time Vs Contract Work (Explained)

Long-term disability

Long-term disability – A disability that lasts for an extended period of time.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Long-term financial planning

Long-term financial planning – The process of planning for long-term financial stability.

  1. Actuary: Insurance Vs Financial Services (Explained)

Long-term financial stability

Long-term financial stability – The ability of an insurance company to remain financially stable over a long period of time.

  1. Health Vs Life: Actuarial Specialties (Decoded)
  2. Life Vs Non-Life: Actuarial Practice (Compared)

Loss adjustment expenses

Loss adjustment expenses – The expenses associated with adjusting a loss claim.

  1. Actuary: Auto Insurance Vs Health Insurance (Explained)
  2. Actuary: Reinsurance Vs Direct Insurance (Explained)
  3. Actuary: Reserving Vs Pricing Roles (Clarified)

Loss assessment

Loss assessment – The process of evaluating the extent of a loss.

  1. Property Vs. Casualty: Actuarial Fields (Compared)

Loss control

Loss control – The process of preventing or reducing losses.

  1. Actuary: Catastrophe Modeling Vs. Traditional (Compared)

Loss control engineering

Loss control engineering – The application of engineering principles to loss control.

  1. Actuarial Science Vs Statistics: Degree Choices (Defined)

Loss control measures

Loss control measures – Strategies used to prevent or reduce losses.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)
  2. Actuary: Catastrophe Modeling Vs. Traditional (Compared)
  3. Actuary: Auto Insurance Vs Health Insurance (Explained)

Loss development factors

Loss development factors – Factors used to adjust loss estimates over time.

  1. Actuary: Reserving Vs Pricing Roles (Clarified)

Loss distribution

Loss distribution – The distribution of losses within a given population.

  1. Actuarial Science Vs Statistics: Degree Choices (Defined)
  2. What Tools and Techniques Should an Actuary Use for Effective Data Manipulation? (10 Important Questions Answered)

Loss distribution approach

Loss distribution approach – A method used to model the distribution of losses.

  1. Actuary: Risk Assessment Vs. Risk Management (Clarified)
  2. Risk Management Vs. Actuarial: Career Paths (Defined)
  3. Actuarial Analyst Vs Risk Analyst: Differences (Decoded)

Loss estimation

Loss estimation – The process of determining the amount of a loss.

  1. Actuary: Catastrophe Modeling Vs. Traditional (Compared)
  2. Actuary: Reinsurance Vs Direct Insurance (Explained)

Loss forecasting

Loss forecasting – The process of predicting future losses based on historical data and other factors.

  1. Actuarial Analyst Vs Risk Analyst: Differences (Decoded)
  2. How Can Financial Modeling Help an Actuary Identify Potential Losses? (7 Core Questions Answered)
  3. What Does An Actuary Do? (9 Simple Questions Answered)

Loss ratio

Loss ratio – The ratio of claims paid out by an insurance company to the premiums collected.

  1. Actuary Vs Underwriter: Roles in Insurance (Explained)
  2. Actuary: Personal Lines Vs Commercial Lines (Unpacked)
  3. Actuary: Auto Insurance Vs Health Insurance (Explained)
  4. Actuary: Reinsurance Vs Direct Insurance (Explained)
  5. Actuarial: Annuities Vs. Life Insurance Roles (Decoded)
  6. Property Vs. Casualty: Actuarial Fields (Compared)
  7. Life Vs Non-Life: Actuarial Practice (Compared)
  8. Product Development Vs Pricing: Actuarial Roles (Compared)
  9. Actuary: Insurance Vs Financial Services (Explained)
  10. Actuary: Reserving Vs Pricing Roles (Clarified)
  11. Health Vs Life: Actuarial Specialties (Decoded)

Loss Ratio Analysis

Loss Ratio Analysis – A method used by actuaries to analyze the relationship between premiums collected and claims paid out.

  1. Actuary: Reinsurance Vs Direct Insurance (Explained)

Loss ratio calculation

The ratio of an insurer’s losses to its premiums, used to assess its financial performance.

  1. Actuary: Auto Insurance Vs Health Insurance (Explained)
  2. Actuary: Reserving Vs Pricing Roles (Clarified)
  3. Life Vs Non-Life: Actuarial Practice (Compared)

Loss ratio evaluation

The process of analyzing an insurer’s losses relative to its premiums to assess its financial performance.

  1. Actuary Vs Underwriter: Roles in Insurance (Explained)

Loss reserves

The funds set aside by an insurer to cover future claims and losses.

  1. Actuary: Reserving Vs Pricing Roles (Clarified)
  2. Actuary: Workers Compensation Vs Personal Injury (Defined)
  3. Actuary Vs Underwriter: Roles in Insurance (Explained)
  4. Property Vs. Casualty: Actuarial Fields (Compared)
  5. Actuary: Small Firm Vs. Large Corporation (Unpacked)
  6. Actuary Vs Data Analyst: Similarities and Differences (Clarified)
  7. Actuary: Personal Lines Vs Commercial Lines (Unpacked)
  8. What Does An Actuary Do? (9 Simple Questions Answered)

Loss reserving

The process of setting aside funds to cover future claims and losses.

  1. Actuarial Science Vs Mathematics: Degree Value (Defined)
  2. Actuary: Risk Assessment Vs. Risk Management (Clarified)
  3. Actuarial Analyst Vs Risk Analyst: Differences (Decoded)
  4. Actuary Vs Underwriter: Roles in Insurance (Explained)
  5. Actuarial Technician Vs Actuary: Roles (Decoded)
  6. Actuary: Predictive Modeling Vs Traditional (Unpacked)
  7. Actuary: Small Firm Vs. Large Corporation (Unpacked)
  8. Actuary Vs Data Analyst: Similarities and Differences (Clarified)
  9. How Does an Actuary Utilize Data Mining to Identify Potential Losses? (10 Important Questions Answered)
  10. How Can I Use Mathematical Models to Become an Actuary? (10 Important Questions Answered)
  11. What Are the Requirements for Becoming a Certified Actuary? (9 Simple Questions Answered)

Loss reserving techniques

Methods used to estimate the amount of money an insurer needs to set aside to cover future claims.

  1. How Can I Learn Accounting Principles to Become an Actuary? (10 Important Questions Answered)
  2. Actuary: Reserving Vs Pricing Roles (Clarified)
  3. How Do Statistical Models Help Actuaries? (8 Most Common Questions Answered)

Lost wages

Income that an individual would have earned if they had not been injured or unable to work due to illness or disability.

  1. Actuary: Workers Compensation Vs Personal Injury (Defined)

Lump sum payment

A one-time payment made in full instead of a series of smaller payments over time.

  1. Health Vs Life: Actuarial Specialties (Decoded)