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Glossary T-Z

T

TAIL
This term has been used to describe both the exposure that exists after expiration of a policy and the coverage that may be purchased to cover that exposure. On “occurrence” forms a claims tail may extend for years after policy expiration, and the losses may be covered. On “claims made” forms tail coverage may be purchased to extend the period for reporting covered claims beyond the normal policy period.

TERM INSURANCE
Life insurance issued for a stated temporary period of time.

TITLE INSURANCE
Indemnifies the owner of real estate in the event clear ownership of property is challenged by discovery of faults in the title.

TO PAY AS CARGO
Used in an ancillary insurances relating to the cargo (e.g. increased value) when the Assured is not required to show evidence of loss or interest and can claim on the policy if he can show that a corresponding loss has been settled on the main cargo policy.

TOTAL LOSS
This can be actual total loss or constructive total loss, where the cost of damage repair exceeds the value of the property insured.

TRANSIT CLAUSE
A clause in the Institute Cargo Clauses, specifying the attachment and termination of cover.
U

UMBRELLA LIABILITY POLICY
A liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.

UNDER-INSURANCE
A condition in which not enough insurance is carried to cover the insurable value, and, especially, to satisfy a coinsurance clause.

UNDERWRITER
(1) A person trained in evaluating risks and determining the rates and coverages that will be used for them; (2) An agent, especially a life insurance agent, who might qualify as a “field underwriter.”

UNDERWRITING
The process of examining, accepting, or rejecting insurance risks, and classifying those selected in order to charge the proper premium for each.

UNINSURED MOTORIST COVERAGE
Endorsement to a personal automobile policy that covers an insured involved in a collision with a driver who does not have liability insurance.

UNIVERSAL LIFE INSURANCE
A flexible premium policy that combines protection against premature death with a savings account that typically earns a money market rate of interest.
V

VALUABLE PAPERS AND RECORDS INSURANCE
An Inland Marine or burglary insurance coverage providing for the replacement of valuable papers, records and forms.

VOID POLICY
One which is inadmissible as evidence in a court of law (e.g. P.P.I. policy). W

WAITING PERIOD
A period of time between the beginning of a disability and the date benefits begin.

WAIVE
To forgo; to refrain from insisting upon application of an insurance deductible under specific conditions.

WAIVER CLAUSE
A clause which entitles both Underwriter and Assured to take measures to prevent or reduce loss without prejudice to the rights of either party.

WARRANTY
A statement made on an application for insurance that is warranted to be true in all respects. If untrue in any respect, even though the untruth may not have been known to the person giving the warranty, the contract may be voided whether or not the untruth or inexactness is material to the risk.

WATERBORNE AGREEMENT
A market understanding whereby Underwriters cover goods against war risks only whilst they are on the overseas vessel. This rule is relaxed only in the case of goods in a transshipping port for a short period awaiting onward carriage.

WHOLE LIFE INSURANCE
Life insurance payable to a beneficiary at the time of death of the insured, whenever  that  occurs.

WITHOUT BENEFIT OF SALVAGE
A term in a marine insurance policy, whereby the Underwriters forgo their subrogation rights. A policy incorporating such a term is deemed to be a gambling policy in law, and is therefore invalid in a court of law.

WITHOUT PREJUDICE
The claim is paid on this occasion, although the Underwriter feels it does not attach to the policy, but this action must not be treated as a precedent for future similar claims.

WORKERS COMPENSATION
(1) A schedule of benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational hazard. The payments are a liability of an employer. (2) Insurance agreeing to pay the Workers Compensation benefits required by law on behalf of the employer.