Glossary U 

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 insured against.