Insurance Handbook - Alaska Department of Community and ...

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U UMBRELLA POLICY Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies. UNBUNDLED CONTRACTS A form of annuity contract that gives purchasers the freedom to choose among certain optional features in their contract. UNCLAIMED LIFE INSURANCE BENEFITS Life insurance benefits that are unclaimed and unpaid because the beneficiaries aren’t aware that the policies exist or can’t locate the policies because they don’t know which insurance company wrote them. If an insurance company knows that an insured died and cannot find the beneficiary, the money is transferred to the state where the insured bought the policy. UNDERINSURANCE The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy. UNDERWRITING Examining, accepting, or rejecting insurance risks and classifying the ones that are accepted, in order to charge appropriate premiums. 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 Glossary 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 that do not meet the criteria of an insurable risk. (See Insurable risk) 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. UTILIZATION REVIEW See Medical utilization review. V VALUED POLICY A policy under which the insurer pays a specified amount of money to or on behalf of the insured upon the occurrence of a defined loss. The money amount is not related to the extent of the loss. Life insurance policies are an example. I.I.I. Insurance Handbook www.iii.org/insurancehandbook 125
Glossary VANDALISM The malicious and often random destruction or spoilage of another person’s property. VARIABLE ANNUITY An annuity whose contract value or income payments vary according to the performance of the stocks, bonds and other investments selected by the contract owner. VARIABLE LIFE INSURANCE A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds and money market mutual funds at the policyholder’s discretion. *VARIABLE PREMIUM LIFE INSURANCE POLICY See Indeterminate premium life insurance policy. VIATICAL SETTLEMENT COMPANIES Insurance firms that buy life insurance policies at a steep discount from policyholders who are often terminally ill and need the payment for medications or treatments. The companies provide early payouts to the policyholder, assume the premium payments, and collect the face value of the policy upon the policyholder’s death. *VARIABLE UNIVERSAL LIFE (VUL) INSURANCE A form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of variable life insurance. With this type of policy, the death benefit and the cash value fluctuate according to the contract’s investment performance. Also known as universal life II. 126 I.I.I. Insurance Handbook www.iii.org/insurancehandbook VOID A policy contract that for some reason specified in the policy becomes free of all legal effect. One example under which a policy could be voided is when information a policyholder provided is proven untrue. VOLATILITY A measure of the degree of fluctuation in a stock’s price. Volatility is exemplified by large, frequent price swings up and down. VOLCANO COVERAGE Most homeowners policies cover damage from a volcanic eruption. VOLUME Number of shares a stock trades either per day or per week. W *WAITING PERIOD For a health insurance policy, the period of time that must pass from the date of policy issue before benefits are payable to an insured. Also known as elimination period and probationary period. WAIVER The surrender of a right or privilege. In life insurance, a provision that sets certain conditions, such as disablement, which allow coverage to remain in force without payment of premiums. *WAIVER OF PREMIUM FOR DISABILITY (WP) BENEFIT A supplementary life insurance policy or annuity contract benefit under which the insurer promises to give up its right to collect premiums that become due while the insured is disabled according to the policy or rider’s definition of disability.
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Page 85 and 86: Glossary 401(K) PLAN An employer-sp
Page 87 and 88: Glossary ADJUSTER An individual emp
Page 89 and 90: Glossary ANNUITY DEATH BENEFITS The
Page 91 and 92: Glossary BALANCE SHEET Provides a s
Page 93 and 94: Glossary larger cushion of capital
Page 95 and 96: Glossary receive full payment on a
Page 97 and 98: Glossary *CONVERTIBLE TERM INSURANC
Page 99 and 100: Glossary savings and loan associati
Page 101 and 102: Glossary EMPLOYMENT PRACTICES LIABI
Page 103 and 104: Glossary insured’s spouse and chi
Page 105 and 106: Glossary contract with no penalty.
Page 107 and 108: Glossary GUARANTY FUND The mechanis
Page 109 and 110: Glossary premium life insurance pol
Page 111 and 112: Glossary INTERNET INSURER An insure
Page 113 and 114: Glossary LIMITS Maximum amount of i
Page 115 and 116: Glossary the states for people whos
Page 117 and 118: N Glossary NAMED PERIL Peril specif
Page 119 and 120: Glossary ORIGINAL EQUIPMENT MANUFAC
Page 121 and 122: Glossary and beyond reserves, prote
Page 123 and 124: Glossary be monthly, quarterly, sem
Page 125 and 126: Glossary price. Repurchase agreemen
Page 127 and 128: Glossary part of the responsibility
Page 129 and 130: Glossary cover the amount of the lo
Page 131: Glossary a preexisting condition. (
Page 135 and 136: Glossary Property/Casualty Insuranc
Page 137 and 138: Directories ISO 545 Washington Blvd
Page 139 and 140: Directories PCI - WASHINGTON, DC 44
Page 141 and 142: Directories Financial Services Indu
Page 143 and 144: Directories COMMODITY FUTURES TRADI
Page 145 and 146: Directories GLOBAL ASSOCIATION OF R
Page 147 and 148: Directories NATIONAL ASSOCIATION OF
Page 149 and 150: Directories THE COUNCIL OF INSURANC
Page 151 and 152: Directories GRIFFITH INSURANCE EDUC
Page 153 and 154: Directories Adjusters NATIONAL ASSO
Page 155 and 156: Directories INSURANCE COMMITTEE FOR
Page 157 and 158: Directories INSURANCE SERVICES NETW
Page 159 and 160: Directories Legal Issues and Servic
Page 161 and 162: Directories INSURANCE REGULATORY EX
Page 163 and 164: Directories INSURANCE INSTITUTE FOR
Page 165 and 166: Directories Title Insurance AMERICA
Page 167 and 168: Directories INSURANCE ADVISORY BOAR
Page 169 and 170: Alphabetical Index State specific a
Page 171 and 172: Alphabetical Index Intermediaries a
Page 173 and 174: State Organizations State Organizat
Page 175 and 176: State Organizations Pacific Associa
Page 177 and 178: State Organizations Florida State A
Page 179 and 180: State Organizations Illinois State
Page 181 and 182: State Organizations Kentucky Insura
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State Organizations Association Hea
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State Organizations Montana State A
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State Organizations Monmouth Juncti
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State Organizations Agent Associati
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State Organizations Other Organizat
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State Organizations Texas Coalition
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State Organizations Agent Associati
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Alphabetical Index YEAR EVENT 1601
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Brief Alphabetical History Index YE
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I.I.l. Resources COMMERCIAL INSURAN
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I.I.I. Member Companies Lockton Com
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The I.I.I. Insurance Handbook • C
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