T, U, V, W Flashcards
(23 cards)
Tenants
homeowners insurance sold to tenants occupying the described property.
Term
period of time for which policy is in effect.
Third Party
person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured.
Title Insurance
coverage that guarantees the validity of a title to real and personal property. Buyers of real and personal property and mortgage lenders rely upon the coverage to protect them against losses from undiscovered defects in existence when the policy is issued.
Total Liabilities
total money owed or expected to be owed by the insurance company.
Total Revenue
premiums, revenue, investment income, and income from other sources.
Treaty
a reinsurance agreement between the ceding company and reinsurer.
Unallocated Loss Adjustment Expense (ULAE)
loss adjustment expenses that cannot be specifically tied to a claim.
Umbrella and Excess (Commercial)
coverage for the liability of a commercial venture above a specific amount set forth in a basic policy issued by the primary insurer; or a self-insurer for losses over a stated amount; or an insured or self-insurer for known or unknown gaps in basic coverages or self-insured retentions.
Umbrella and Excess (Personal)
non-business liability protection for individuals above a specific amount set forth in a basic policy issued by the primary insurer; or a self-insurer for losses over a stated amount; or an insured or self-insurer for known or unknown gaps in basic coverages or self-insured retentions.
Unauthorized Reinsurance
reinsurance placed with a company not authorized in the reporting company’s state of domicile.
Underwriter
person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate.
Underwriting
the process by which an insurance company examines risk and determines whether the insurer will accept the risk or not, classifies those accepted and determines the appropriate rate for coverage provided.
Underwriting Risk
section of the risk-based capital formula calculating requirements for reserves and premiums.
Unearned Premium
amount of premium for which payment has been made by the policyholder but coverage has not yet been provided.
Unearned Premium Reserve
all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet.
Unpaid Losses
claims that are in the course of settlement. The term may also include claims that have been incurred but not reported.
Valued Policy
an insurance contract for which the value is agreed upon in advance and is not related to the amount of the insured loss.
Valued Policy Law
state legislation which specifies that the insured shall receive the face amount of the policy in the event of a total loss to a dwelling rather than the actual cash value regardless of the principle of indemnity.
Warrant
an agreement that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times according to a schedule or warrant agreement.
Warranty
coverage that protects against manufacturer’s defects past the normal warranty period and for repair after breakdown to return a product to its originally intended use. Warranty insurance generally protects consumers from financial loss caused by the seller’s failure to rectify or compensate for defective or incomplete work and cost of parts and labor necessary to restore a product’s usefulness. Includes but is not limited to coverage for all obligations and liabilities incurred by a service contract provider, mechanical breakdown insurance and service contracts written by insurers.
Workers’ Compensation
insurance that covers an employer’s liability for injuries, disability or death to persons in their employment, without regard to fault, as prescribed by state or federal workers’ compensation laws and other statutes.
Written Premium
the contractually determined amount charged by the reporting entity to the policyholder for the effective period of the contract based on the expectation of risk, policy benefits, and expenses associated with the coverage provided by the terms of the insurance contract.
