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Last in, first out (LIFO)

Term · Insurance and risk management · MLC-T-INS-001960

An accounting and inventory management method where the most recently acquired assets or incurred liabilities are the first to be processed or removed. In the context of insurance claims involving long-tail liabilities that trigger multiple policy periods, the last in, first out (LIFO) allocation method dictates that the most recent policy in effect pays first. This contrasts with the first in, first out (FIFO) method, which would exhaust the limits of the oldest applicable policy first.

Table 1. Record
IdentifierMLC-T-INS-001960
FieldInsurance and risk management
AbbreviationLIFO
Record as JSON 
{
  "id": "MLC-T-INS-001960",
  "term": "Last in, first out (LIFO)",
  "field": "Insurance and risk management",
  "definition": "An accounting and inventory management method where the most recently acquired assets or incurred liabilities are the first to be processed or removed. In the context of insurance claims involving long-tail liabilities that trigger multiple policy periods, the last in, first out (LIFO) allocation method dictates that the most recent policy in effect pays first. This contrasts with the first in, first out (FIFO) method, which would exhaust the limits of the oldest applicable policy first.",
  "abbreviation": "LIFO",
  "url": "https://mlchart.com/terminology/insurance/last-in-first-out-lifo/"
}

Record 1,902 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.