Insurance Glossary: T-Z

Question: What is a Tail?

Answer: A tail is coverage for losses that are not discovered or reported under a claims-made policy until after the policy has expired.

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Q: What is Target Benefit Pension Plan?

Answer: A target benefit pension plan is a hybrid plan which combines the benefit pension plan with the money purchase plan. A target amount of benefits in the retirement plan could be scheduled for payment at a certain. The benefit isn’t guaranteed, but investment choices usually are more liberal.

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Q: What are Temporary Disability Benefits?

Answer: Temporary disability benefits are part of the state employer liability laws that require minimum benefits to be paid to disabled employees under workers compensation laws.

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Q: What is Temporary Insurance Agreement?

Answer: A temporary insurance agreement is the amount of insurance provided from the time the application is written by the agent and the first premium payment is made and when the policy is issued.

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Question: What is Term?

Answer: Term is the length of time for which an insurance contract is written.

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Question: What is Termination?

Answer: Termination is the end of coverage caused either by the expiration of the policy or by cancellation or nonrenewal.

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Question: What is Theft?

Answer: Theft is the action or crime of stealing.

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Question: What is Tornado Insurance?

Answer: Tornado insurance is a contract protecting against damage done to property by unusually high-speed winds.

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Tornado Insurance

Tornado insurance is a contract protecting against damage done to property by unusually high-speed winds.

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Question: What is Tort?

Answer: Tort is damage, injury or wrongful act done willfully or negligently causing injury to persons or property for which a civil suit can be brought.

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Question: What is Total Disability?

Answer: A total disability is when an illness or disability prevents the employee from performing any of the tasks of their employment.

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Question: What is Total Loss?

Answer: Total loss is the loss of all the insured property.

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Question: What is Traumatic Injury?

Answer: A traumatic injury caused by something other than sickness or disease.

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Q: What is Travel Accident Insurance?

Answer: Travel accident insurance includes injuries, accidents, or death while traveling on an airplane, bus, or train.

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Q: What is Ultimate Mortality Table?

Answer: An ultimate mortality table is used by insurance companies that details the death rates based on age and sex. Used to calculate premiums for life insurance policies.

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Question: What is Unallocated Benefit?

Answer: In health insurance, and unallocated benefit is a benefit that are not scheduled or limited based on certain types of expenses.

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Q: What is Underinsured Motorist Coverage?

Answer: Underinsured motorist coverage pays for your bodily injury or physical damage loss if the party at fault has inadequate coverage.

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Question: What is an Underwriter?

Answer: An underwriter is an employee of an insurance company who accepts or rejects risks.

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Q: What are Underwriting Expenses?

Answer: Underwriting expenses are the costs incurred by an insurance company for the acquisition of new policies.

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Question: What is Unearned Premium?

Answer: Unearned premium corresponds to the remaining term of the policy term.

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Q: What is Unemployment Insurance?

Answer: Unemployment insurance is federally designed “insurance” for employers to help cover the costs of unemployment compensation for certain types of operations.

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Q: What is Unfair Claims Practice?

Answer: An unfair claims practice is abusive action taken by the insurance company to avoid paying a claim, reduce the amount of a claim, or delay payment of a claim for an unreasonable period of time.

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Q: What is Uninsured Motorists Coverage?

Answer: Uninsured motorists coverage pays for your bodily injury or physical damage loss if the party at fault doesn’t have coverage.

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Q: What is Universal Life Insurance?

Answer: Universal life insurance is a monthly term life insurance plus flexibility in death benefits and premium payments.

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Q: What is Universal Variable Life Insurance?

Answer: A universal variable life insurance combines aspects of universal life and variable life insurance policies. The insurer can make investment decisions for the premium and dividend interest earned.

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Question: What is an Unoccupied Building?

Answer: An unoccupied building or dwelling is one that is temporarily vacant, but is not empty. Policy definitions vary.

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Question: What is Vacancy?

Answer: The definition of vacancy varies by insurance contract, it usually means unused and unfurnished.

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Q: What is a Vacancy or Unoccupancy Permit?

Answer: A vacancy or unoccupancy permit is a policy condition that allows coverage for an extended period of time for a vacant or unoccupied building or dwelling.

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Question: What is Validation Period?

Answer: In life insurance, the validation period is the time it takes for the policy premium to cover the commission, cost of investigation, medical exams, policy issuing expenses, and other reports on the insured.

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Q: What is Valuable Papers and Records Insurance?

Answer: Valuable papers and records insurance provides for the replacement of a commercial operation’s valuable papers, records and forms, including electronic media.

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Question: What is Valuation?

Answer: A valuation is an estimation of worth by a qualified appraiser.

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Question: What is Valuation Premium?

Answer: A valuation premium the amount in the life insurance premium that is allocated to state mandated reserves.

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Question: What is a Valued Policy?

Answer: A valued policy provides that specific property insured is worth a specified amount in the event of total loss.

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Question: What is Valued Policy Law?

Answer: In certain states, a valued policy law which requires a valued policy.

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Question: What is Vandalism?

Answer: Vandalism is a malicious or mindless destruction of property.

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Question: What is a Variable Annuity?

Answer: In a variable annuity, payments in the form of benefits or payouts are based on the investments made and can vary.

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Question: What is Variable Life Insurance?

Answer: With variable life insurance, the payments are variable based on the investment earnings accumulated. The cash surrender value and benefits are based on the investment earnings and can also be variable.

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Q: What is Variable Premium Life Insurance?

Answer: For variable premium life insurance, the amount earned from investment dividends is used to help pay for premiums. The total left over for the insured to pay as premium may vary.

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Q: What is Variable Universal Life Insurance?

Answer: Variable universal life insurance is similar to a universal life insurance policy, but includes mainly equities investments which can be more volatile. This policy is considered a security.

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Question: What is Viatical?

Answer: Viatical means selling the rights to a life insurance policy. The death benefits of the policy are sold, normally to help pay the needs of the terminally ill insured.

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Question: What is a Viatical Settlement?

Answer: A viatical settlement is when some or all of the proceeds of the life insurance policy are paid to  the terminally ill insured; could involve a third party purchasing this policy right.

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Question: What is a Voided Policy?

Answer: A voided policy is one that has been rescinded due to misrepresentation or other fraudulent act by the insured.

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Question: What is Watercraft Exclusion?

Answer: Most standard personal and commercial liability policies have a watercraft exclusion.

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Question: What is Wedding Insurance?

Answer: Wedding insurance contracts provide coverage for unforeseen circumstances that affects wedding plans such as the cost due to unavoidable cancellation.

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Question: What is a Wedding Presents Floater?

Answer: A wedding presents floater is designed to insure wedding presents before and for a limited time after a wedding. It can be included in many wedding insurance policies.

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Question: What are Wellness Programs?

Answer: Wellness programs are activities provided or endorsed by employers to improve the health of their employees.

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Question: What is Whole Life Insurance?

Answer: Whole life insurance kind of life insurance that includes a face value death benefit which can be paid for the insured’s “whole” life, unless the insured decides to cancel or not pay premiums on the policy.

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Q: What is Windstorm (Including Tornado and Cyclone) Insurance?

Answer: Windstorm insurance covers losses due to property damage from unusually high winds, cyclones, tornadoes, or hurricanes.

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Question: What is Workers Compensation Insurance?

Answer: Workers compensation insurance is a contract which provides coverage to employees for loss due to injury or contracted disease arising out of and in the course of employment.

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Question: What is XCU?

Answer: XCU stands for Explosion, Collapse, and Underground. They are normally excluded from coverage for many risks that have those exposures. Coverage can often be obtained through special arrangement.

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Question: What is Yacht Insurance?

Answer: Yacht insurance is designed to provide property damage or hull coverage for larger sailing vessels.

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Question: What is Yearly (Annual) Renewable Term Insurance?

Answer: Yearly (annual) renewable term insurance is a kind of life insurance policy in which the insured may renew for a set number of years without proving insurability, however, the premium typically increases annually.

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