UL Underwriters Laboratories, Inc.
umbrella policy A liability insurance
policy that takes over where basic liability insurance policies leave off.
An umbrella policy usually has a liability limit of $1 million or more, which
is added on top of the limit for any other policy, such as a home owners policy
that covers liability.
underlying limits The limits of liability
of the policy(ies) underlying an umbrella or excess policy.
underwriter In short, one who underwrites.
An underwriter decides whether to accept or reject applications based on the
insurer’s written standards, and their own experienced judgment. An agent
is often referred to as a “field underwriter.”
underwriting A systematic process for evaluating
risks. It involves evaluating, selecting, classifying and rating each risk,
and establishing the standards of coverage and amount of protection to be
offered to each acceptable risk.
unearned premium That portion of the
premium which has not yet been earned and which is consequently owed to the
policyholder if the policy is canceled.
unfair trade practices Practices
that constitute unfair methods of competition or unfair or deceptive acts
or practices. They include misrepresentation, twisting, rebating, deceptive
or false advertising, inequitable claim settlement, and unfair discrimination.
uniform simultaneous death act
The act which states that, when an insured and beneficiary die at the same
time, it is presumed that the former (the insured) survived the latter.
universal life A life policy that has
flexible premiums and death benefits. Premiums are paid into an interest-bearing
account from which maintenance fees, if any, and costs of insurance are deducted.
use and occupancy insurance
Protection against actual loss sustained, including loss of net profits and
such fixed charges and expenses as must continue during enforced disruption
of manufacturing and business operations caused by fire or other contingencies