Glossary Terms T - W Flashcards
Terminally III
In most states, this is defined as a patient who is expected to die within six months of a specific illness or sickness.
Total disability
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
Twisting
A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it’s to the insured’s disadvantage.
Underwriter
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Underwriting
The process of reviewing, accepting or rejecting applications for insurance.
Unearned premium
The portion of premium for which policy protection has not yet been given.
Unilateral contract
A contract that legally binds only one party to contractual obligations after the premium is paid.
Utmost good faith
The fair and equal bargaining by both parties in forming the contract, where the applicant must make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk.
Waiting Period
Time between the beginning of a disability and the start of disability insurance benefits.
Waiver
The voluntary abandonment of a known or legal right or advantage.
Warranty
A material stipulation in the policy that if reached may void coverage.
Workers compensation
Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as a result of an on the job hazard.
