Glossary T 

TPA third party administrator.

target risk
(1) A large risk that attracts unusually keen competition among insurers, agents or brokers, or
(2) A large, hazardous risk for which insurance is difficult to place.

temporary insurance agreement A separate contract included with a life insurance application providing coverage to eligible proposed insureds during underwriting, which ends when the application is issued or declined.

term Generally, the period of time for which a policy or bond is issued.

term insurance A type of life insurance policy that provides protection for a specified time period; most do not have cash value.

theft The willful taking of one personís property by another, wrongfully. To recover indemnity, an intent permanently to deprive the owner of his/her property need not be established for there to be a theft under the policy.

third party (under a liability insurance policy) A person, not a party to the insurance contract, who has an alleged or actual claim for injury or damage against the person insured under the policy.

total disability Frequently defined as the inability to perform any of the duties of oneís occupation.

trust agreement A supplemental settlement agreement which distributes the proceeds in a special way, much as a regular fiduciary trust does. Insurance companies cannot enter into trust agreements.

trustee A person appointed to manage the property of another.

twisting The practice of inducing a policy owner in one company to lapse, forfeit, or surrender a policy for the purpose of taking out a policy in another company. It is a crime in all states and is typically classified as a misdemeanor.