Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.
If you plan to start a new policy or renew your current policy with a carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.
Insures losses in excess of amounts covered by other liability insurance policies; also protects the insured in many situations not covered by the usual liability polices.
See Uninsured Motorist Property Damage
A policy provision providing reimbursement up to a maximum amount for the cost of all extra miscellaneous hospital services, but not specifying how much will be paid for each type of service.
(1) a company that receives the premiums and accepts responsibility for the fulfillment of the policy contract;
(2) the company employee who decides whether or not the company should assume a particular risk;
(3) the agent who sells the policy.
The process of reviewing, selecting, and approving risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
Underwriting Profit Or Loss
The amount of money which an insurance company gains or loses as a result of its insurance operations. It excludes investment transactions and federal income taxes.
See Underwriting Profit or Loss
The portion of a premium that a company has collected but has yet to earn because the policy still has unexpired time to run.
A one-time credit of $192,800, usually applied against Federal Estate Taxes, that is available to every individual’s estate. The credit also can be used for payment of Federal Gift Taxes during that individual’s lifetime.
A rating structure in which one premium applies to all insureds, regardless of age, sex, or occupation.
Statutory policy provisions of health insurance policies which specify some of the rights and obligations of the insured and the company. These provisions, with some modifications, are part of the insurance laws of all 50 states and the District of Columbia.
One not acceptable for insurance due to excessive risk.
Uninsured Motorist Property Damage
Vehicle insurance available in some jurisdictions to physical pay for damage due to uninsured motorists (only)
Uninsured/Underinsured Motorist Coverage
A form of insurance that pays the policy holder and passengers in his/her car for bodily injury caused by the owner or operator of an uninsured or inadequately insured automobile.
Universal Life Insurance
A flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rate which may change from time to time
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