Glossary
Liberal Profession (self-employment)
An activity carried out personally and independently by an individual with a specific professional qualification and a license or the right to practice the respective profession. Liberal professions include accountants, consultants, auditors, lawyers, notaries, private bailiffs, jurors, experts attached to courts and prosecution offices, licensed appraisers, intellectual property representatives, medical specialists, translators, architects, engineers, technical managers, professionals in culture, education, arts and sciences, insurance agents, and other individuals. Persons practicing a liberal profession are self-insured, bear personal responsibility for the quality of their work, and are subject to specific legal and professional regulations.
Life and Annuity Insurance
A life insurance product under which the insurer undertakes, upon the occurrence of a specified event (for example, survival to a certain age or the expiration of a contractual term), to pay the insured or another designated person periodic payments in the form of an annuity (pension or other regular payments) for a fixed term or for life. This insurance combines life protection with a savings component, providing long-term income after the contract term or upon the occurrence of the agreed event. In the event of the insured’s death before annuity payments commence, the contract may provide for the payment of compensation to heirs or other designated beneficiaries.
Life Insurance
Insurance against risks related to the life and health of the insured, such as the death of the insured person, survival to a certain age or term, permanent loss of working capacity, and other related risks.
Life Insurance
An insurance product under which the insurer undertakes the obligation to pay a sum insured or compensation upon the occurrence of an event related to the life or health of the insured person — for example, death, survival to a specified term, or the occurrence of a health-related risk. Life insurance policies may be classified as: risk (term) insurance – providing payment only in the event of a covered risk (e.g. death or disability); savings or investment insurance – combining insurance protection with accumulation of value, which is paid out upon survival to the maturity of the contract; mixed insurance – combining risk protection with a savings or investment element. Additional coverage is often offered, such as for illnesses, accidents, or permanent disability, to ensure broader protection.
Life Insurance Products (Life Insurance Policies)
Insurance contracts under which the insurer undertakes to pay a lump sum or an annuity upon the occurrence of a specified event related to the insured’s life, such as survival to a certain age, death, permanent disability, or another condition stipulated in the policy. Life insurance can be risk-based or mixed
Lifetime Partition
A legal arrangement in which the owner of property (the testator) distributes part or all of their estate among their heirs during their lifetime, either by way of donation or by will. The purpose is often to prevent future disputes among heirs. If the testator does not include an heir entitled to a reserved portion, the division is invalid and may be contested.
Limit of Liability
The maximum amount that the insurer is obliged to pay upon the occurrence of an insured event or over the entire term of the insurance policy. The limit is specified in the policy and can be set for each individual event, for a group of events, or as an overall limit for the entire insurance period. It caps the insurer’s liability and represents the upper limit of the financial protection to which the insured is entitled under the contract.
Liquidity
The ability of an asset to be relatively easily and quickly converted into cash or other assets with minimal loss.
Loan
A contractual arrangement in which one party (the lender) provides another party (the borrower) with money or other fungible assets, with the obligation to return the same amount, type, and quality within an agreed period. A loan may be either interest-bearing (with compensation) or interest-free (without compensation). In everyday language, the terms “loan” and “credit” are often used interchangeably, but in financial and legal contexts there is a distinction. Credit is granted only by a bank or financial institution and is always interest-bearing, while a loan may be granted by any party (an individual or institution) and does not necessarily involve interest.
Loan agreement
An agreement under which the bank undertakes to provide the borrower with a specified amount of money for a defined purpose and under agreed terms and duration. The borrower undertakes to use the funds according to the agreement, repay the principal after the term expires, and pay the agreed interest. The agreement contains detailed information about both parties, the loan parameters, conditions for disbursement and repayment, a repayment schedule, fees, commissions, and additional expenses, as well as the borrower’s rights, including the possibility of early repayment, the right of withdrawal, measures in case of default, and the availability of out-of-court dispute resolution mechanisms.
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