T, U, V, W

Question 1

Tenants

Answer 1

homeowners insurance sold to tenants occupying the described property.

Question 2

Term

Answer 2

period of time for which policy is in effect.

Question 3

Third Party

Answer 3

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.

Question 4

Title Insurance

Answer 4

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.

Question 5

Total Liabilities

Answer 5

total money owed or expected to be owed by the insurance company.

Question 6

Total Revenue

Answer 6

premiums, revenue, investment income, and income from other sources.

Question 7

Treaty

Answer 7

a reinsurance agreement between the ceding company and reinsurer.

Question 8

Unallocated Loss Adjustment Expense (ULAE)

Answer 8

loss adjustment expenses that cannot be specifically tied to a claim.

Question 9

Umbrella and Excess (Commercial)

Answer 9

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.

Question 10

Umbrella and Excess (Personal)

Answer 10

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.

Question 11

Unauthorized Reinsurance

Answer 11

reinsurance placed with a company not authorized in the reporting company’s state of domicile.

Question 12

Underwriter

Answer 12

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.

Question 13

Underwriting

Answer 13

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.

Question 14

Underwriting Risk

Answer 14

section of the risk-based capital formula calculating requirements for reserves and premiums.

Question 15

Unearned Premium

Answer 15

amount of premium for which payment has been made by the policyholder but coverage has not yet been provided.

Question 16

Unearned Premium Reserve

Answer 16

all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet.

Question 17

Unpaid Losses

Answer 17

claims that are in the course of settlement. The term may also include claims that have been incurred but not reported.

Question 18

Valued Policy

Answer 18

an insurance contract for which the value is agreed upon in advance and is not related to the amount of the insured loss.

Question 19

Valued Policy Law

Answer 19

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.

Question 20

Warrant

Answer 20

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.

Question 21

Warranty

Answer 21

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.

Question 22

Workers’ Compensation

Answer 22

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.

Question 23

Written Premium

Answer 23

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.