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U

A slender bone located on the little finger side of the forearm that fits into the humerus but does not directly fit into the wrist bones.
The final paid amount for all losses in an accident year.
A factor that is applied to the most recent estimate of incurred losses for a specific accident year to estimate the ultimate incurred loss for that year.
Total amount of damages for which the insured is legally liable in payment of bodily injury, property damage, personal injury, or advertising injury.
A reinsurance treaty clause that specifies the loss amount against which the retention and reinsurance limit apply.
The dollar amount of the claim payment and claim adjustment expenses for which a claim can be settled.
An act of a corporation that exceeds its chartered powers.
An activity that is inherently dangerous; if harm results, the performer may be held strictly liable.
Liability insurance that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention.
A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention.
A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention.
A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention.
A person appointed, usually by agreement of independent appraisers, to help settle a dispute on an amount of a loss for a claim.
Insurers unrelated to one another by ownership or another relationship.
Loss adjustment expense that cannot be readily associated with a specific claim.
Reinsurance agreements with reinsurers that are not licensed or otherwise authorized to do business in a primary insurer's state of domicile.
A reinsurance treaty clause required by state insurance regulation that specifies those requirements that an unauthorized reinsurer must satisfy in order for the transaction to receive favorable accounting treatment as a reinsurance transaction.
A reinsurer that is not licensed or otherwise authorized to do business in the primary insurer's state of domicile.
The commercial crime endorsement that covers the cost of fines and penalties imposed on the insured because of the unauthorized reproduction of computer software by an employee of the insured.
Circumstances were such that the driver of the vehicle would not have been able to avoid the accident using reasonable care. The most common example is a driver having an unexpected heart attack.
An uncompleted contract that has greater billings to date as a percentage of estimated total contract billings.
The removal of an insurer’s incidental services from insurance coverage.
A contract provision that is so intolerably offensive to the court’s sense of basic justice that the court cannot, in good conscience, enforce it.
The practice of incurring more costs and earned profits to date on a job than have been billed.
A pension fund that does not have sufficient funds available to meet all future promised payments.
An insurance policy that provides proof of financial responsibility under governmental regulations that apply to the owners and operators of underground storage tanks containing fuels or other hazardous materials.
Insurance to cover bodily injury, property damage, and off-site cleanup costs resulting from leakage of pollutants from underground storage tanks.
Any type of land motor vehicle or trailer that is insured for bodily injury liability but at limits that are lower than the underinsured limit the insured has selected in its policy.
Coverage that applies when a negligent driver has liability insurance at the time of the accident but has limits lower than those of the injured person's coverage.
Coverage that provides compensation to insureds who have suffered bodily injury in an accident with an at-fault motorist whose bodily injury liability insurance limits are lower than the injured person's underinsured motorists coverage and are not sufficient to pay all the insured's damages.
Insurance that applies below an excess or umbrella liability policy.
The insurance policies that apply below an excess or umbrella liability policy.
An underestimation of the present value of future losses and related loss adjustment expenses.
A situation in which a DOI determines that its consumers lack access to insurance in certain lines of business.
An insurer employee who evaluates applicants for insurance, selects those that are acceptable to the insurer, prices coverage, and determines policy terms and conditions.
The difference between the gross proceeds and the net proceeds.
Assisting in the issue of new securities.
The process of selecting insureds, pricing coverage, determining insurance policy terms and conditions, and then monitoring the underwriting decisions made.
A review of underwriting files to ensure that individual underwriters are adhering to underwriting guidelines.
The scope of decisions that an underwriter can make without receiving approval from someone at a higher level.
A cyclical pattern of insurance pricing in which a soft market (low rates, relaxed underwriting, and underwriting losses) is eventually followed by a hard market (high rates, restrictive underwriting, and underwriting gains) before the pattern again repeats itself.
Costs incurred by an insurer for operations, taxes, fees, and the acquisition of new policies.
A written manual that communicates an insurer’s underwriting policy and that specifies the attributes of an account that an insurer is willing to insure.
Income an insurer earns from premiums paid by policyholders minus incurred losses and underwriting expenses.
An insurer's loss incurred when losses and expenses for a given period are greater than its premium earned for the same period.
A guide to individual and aggregate policy selection that supports an insurer’s mission statement.
Income an insurer earns from premiums paid by policyholders minus incurred losses and underwriting expenses.
A measure of the loss volatility of the types of insurance sold by an insurer.
Underwriting information for an initial application, or a substantive policy midterm or renewal change.
The transmission of underwriting information for the initial offering of a prospective account, the major updating of a file on an established account, or a request for approval to execute a bond.
A specialist in policy pricing and issuance preparation who performs the mechanics of pricing for an insurer.
The entire market of buyers for any particular type of product or service.
A principal whose existence is unknown to the third party dealing with the agent.
The improper use of power or trust to deprive a person of free will and substitute another's objective, resulting in lack of genuine assent to a contract.
The portion of policy premium for the unexpired portion of the policy.
An insurer liability representing the amount of premiums received from policyholders that are not yet earned.
The portion of written premiums that corresponds to coverage that has not yet been provided.
Government programs that pay weekly cash benefits to eligible workers who are involuntarily unemployed.
A contract that is a valid contract but that because of a technical defect cannot be enforced.
See Unfair claim practices law.
See Unfair claim practices law.
A state law that specifies illegal claims practices.
Use of wrongful or fraudulent practices by a business to gain an unfair advantage over competitors.
Applying different standards or methods of treatment to insureds who have the same basic characteristics and loss potential, such as charging higher-than-normal rates for an auto insurance applicant based solely on the applicant's race, religion, or ethnic background.
Methods of competition or advertising or procedures that tend to deprive the public of information necessary to make informed insurance decisions.
State law that specifies certain prohibited business practices.
A closed vessel that can withstand internal pressure or vacuum but is not heated by the direct fire of burning fuel.
Financing technique whereby an account is set up on the balance sheet allocating funds for a retained loss.
See unitized construction.
A standard in the computing industry for consistent representation of text used in almost all global languages and symbol systems.
A federal tax credit—designed to exempt small estates from estate tax—that may be applied against the gift tax, the estate tax, and, under specified conditions, the generation-skipping transfer tax.
A model code that has been adopted in whole or in part by each state. Its purpose is to provide a consistent legal basis for business transactions throughout the United States and its territories. Its articles cover the sale and lease of goods; negotiable instruments; banks and banking; funds transfers; letters of credit; bulk transfers and bulk sales; warehouse receipts, bills of lading, and other documents of title; investment securities; and secured transactions.
A model code that has been adopted in whole or in part by each state and whose purpose is to provide a consistent legal basis for business transactions throughout the United States and its territories.
A contract in which only one party makes a promise or undertakes the requested performance.
A perception by one party to a contract that does not agree with the facts.
Land in its natural state without any man-made alterations.
A voluntary association of individuals acting together under a common name to accomplish a lawful purpose.
State statutes that require auto insurers to offer uninsured and underinsured motorists coverage to all insured motorists who are their policyholders.
Coverage for the insured's bodily injury incurred in a boating accident caused by another boat's owner or operator who is uninsured and who is legally responsible for the injury; similar to the PAP's uninsured motorists coverage.
A land motor vehicle or trailer that is not insured for bodily injury liability, is insured for less than the financial responsibility limits, is a hit-and-run vehicle, or whose insurer denies coverage or becomes insolvent.
Coverage that provides a source of recovery for occupants of a covered auto or for qualifying pedestrians who are injured in an accident caused by an at-fault motorist who does not have the state minimum liability insurance or by a hit-and-run driver.
Laws that require auto insurers to offer uninsured motorists coverage to their customers to provide a source of compensation for insureds who suffer a loss at the hands of an uninsured motorist.
A type of release used when an insurer pays the insured through the uninsured motorist’s coverage, then seeks recovery from the tortfeasor through subrogation. It does not release the tortfeasor from liability.
Resulting damages, produced by deliberate acts, that are greater in severity than the insured intended.
A risk that is so specialized or unusual that admitted insurers are unwilling to insure it.
A premium base that reflects the insured's liability exposure based on the number of units the insured owns.
An estimating method based on a common unit of measure such as square feet, which combines the cost of the materials and the cost of the labor into one amount.
A regulated investment company that issues a fixed number of shares representing an investment in a specific bundle of securities.
A standard block of insurance protection used in rating a line of business.
A statistical report that includes payroll, manual premium, and incurred losses, by classification and by state, for each insured.
The fixed percentages set in each state that specify the increase in rates charged in the Basic Manual for workers compensation and employers liability coverages for those employees subject to the LHWCA.
A federal statute that eliminates the right of most maritime workers (other than crew members of vessels) to sue their employers and, in return, requires such employers to provide injured or ill workers with benefits like those provided by state workers compensation statutes.
An endorsement that amends the Workers Compensation and Employers Liability Insurance Policy to cover the insured’s obligations under the U.S. Longshore and Harbor Workers’ Compensation Act.
Passenger vehicle design by which sheet metal panels are welded together so that the body is in one piece rather than two.
Insurance products under which the investment performance of a segregated bundle of assets is passed through to the policyowners.
An agreement that divides a contract into various quantities of work categories for the contractor to perform.
One rate class, selected as a baseline, to which all other rate classes are compared.
A financial institution that can engage in a broad range of financial service activities.
Permanent life insurance with flexible premiums and death benefits.
Flexible premium permanent life insurance that separates the protection, savings, and expense components.

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