U, V & W Definitions Flashcards
Define
Unauthorized Insurer
Unauthorized Insurer:
See Nonadmitted Insurer
Define
Underwriting
Underwriting:
Insurance company function that involves researching and evaluating insurance applicants to decide which ones are acceptable to the company as insureds. An insurance producer (appointed agent) acts in the capacity of a “field underwriting” in the insurance transaction. The insurance producer does not have the authority to accept or reject the risk, but the insurance producer is charged with the responsibility to provide full disclosure to the insurer’s underwriting staff.
Define
Unfair Discrimination
Unfair Discrimination:
Applying different standards to insureds that have the same risks of loss.
Define
Unilateral Contract
Unilateral Contract:
A type of contract that is “onesided”. An insurance policy is one-sided, because only the insurance company is legally bound to perform according to the provisions of the policy (contract).
Define
Unoccupancy
Unoccupancy:
The absence of people from a premises. Property coverage is often restricted if there are long periods of unoccupancy.
Define
Utmost Good Faith
Utmost Good Faith:
A characteristic of insurance contracts meaning that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations.
Define
Vacancy
Vacancy:
The absence of both people and property from a premises. Property coverage is often restricted when there are long periods of vacancy.
Define
Valuation
Valuation:
Method used by the insurance company to determine the appropriate payment for a loss.
Define
Vandalism And Malicious Mischief (V&MM)
Vandalism And Malicious Mischief (V&MM):
Coverage provided in many Property insurance policies that protects property against damage caused by vandals.
Define
Vicarious Liability
Vicarious Liability:
Liability that a person or business incurs because of the actions of others, such as family members or employees. Also called imputed liability.
Define
Waiver
Waiver:
The intentional relinquishment of a known right.
Define
Warranty
Warranty:
(1) A specific agreement between the insured and the insurer that becomes a part of the insurance policy.
(2) A warranty is a guarantee. Proof of loss statement or submission to examination under oath is a sworn statement (warranty), the insurer’s promise of future benefit is a warranty. A breach of warranty can void the policy.
