Umbrella Insurance -
Provides
high limits of additional liability coverage above the limits
of your homeowners and auto policy. In addition, it provides
coverage that may be excluded by other liability policies.
Underwriting -
The
process an insurer goes through.
Unearned Premium - That portion of the written
premium applicable to the unexpired or unused part of the
period for which the premium has been paid. Thus, in the case
of an annual premium, at the end of the first month of the
premium period eleven-twelfths of the premium is unearned.
Unearned Premium
Reserve - The amount shown in the insurance
company's balance sheet which represents the approximate total
of the premiums which have not yet been earned as of a
specific point in time. See also Unearned Premium.
Unemployment Insurance -
Insurance against loss of income due to unemployment. It is
funded by payroll taxes and subject to control by both the
federal and state governments. Individuals who are willing and
able to work qualify for this insurance by working at a job in
an eligible classification, earning a minimum amount of money,
and being subject to involuntary unemployment.
Uniform Forms - The
wording on many policy documents has been agreed upon by most
companies and standardized. They are printed and distributed
by rating bureaus and by certain well-known establishments and
are called standard or uniform forms.
Unilateral Contract - A
contract such as an insurance policy in which only one part to
the contract, the insurer, makes any enforceable promise. The
insured does not make a promise but pays a premium, which
constitutes his part of the consideration.
United States Aircraft Insurance
Group - A group of insurers providing facilities
for all forms of Aviation Insurance.
Unlevel Commission System -
A system of commissions under which the first year commission
is a higher percentage of the premium than are renewal
commissions.
UNDERWRITING
INCOME - The insurer’s profit on the insurance
sale after all expenses and losses have been paid. When
premiums aren’t sufficient to cover claims and expenses,
the result is an underwriting loss. Underwriting losses are
typically offset by investment income.
UNEARNED PREMIUM - The
portion of a premium already received by the insurer under
which protection has not yet been provided. The entire premium
is not earned until the policy period expires, even though
premiums are typically paid in advance.
UNINSURABLE RISK - Risks
for which it is difficult for someone to get insurance.
UNINSURED MOTORISTS COVERAGE
- Portion of an auto insurance policy that protects
a policyholder from uninsured and hit-and-run drivers.
UNIVERSAL LIFE INSURANCE -
A flexible premium policy that combines protection against
premature death with a type of savings vehicle, known as a
cash value account, that typically earns a money market rate
of interest. Death benefits can be changed during the life of
the policy within limits, generally subject to a medical
examination. Once funds accumulate in the cash value account,
the premium can be paid at any time but the policy will lapse
if there isn’t enough money to cover annual mortality
charges and administrative costs.
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