Glossary of Insurance Terms

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For general informational purposes only. Refer to your policy to determine the exact definition of any term defined therein.
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David G. Sayles Insurance Services
Insurance Terms--U

Umbrella Liability Insurance: Coverage designed to protect for losses in excess of amounts covered by other Liability Insurance Policies; in some cases, may also protect the Insured not covered by the usual Liability Polices. This type of Liability Insurance provides excess liability protection. Businesses and individuals need this coverage for its provision of excess coverage over the underlying Liability Insurance they maintain. Various extensions are available for Umbrella Coverages. [MORE]
Unallocated Benefit: A policy provision providing reimbursement up to a maximum amount for the cost of all extra miscellaneous hospital services, but not specifying how much will be paid for each type of service.
Underwriter: (1) A company that receives the premiums and accepts responsibility for the fulfillment of the policy contract; (2) the company employee who decides whether or not a particular risk meets the insurance company's underwriting guidelines; (3) the agent who sells the policy.
Underwriting: The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
Underwriting Profit or Loss: The amount of money which an insurance company gains or loses as a result of its insurance operations. It excludes investment transactions and federal income taxes.
Unearned Premium: The portion of a premium that a company has collected but has yet to earn because the policy still has unexpired time to run.
Unified Credit: A one-time credit, usually applied against Federal Estate Taxes, that is available to every individual's estate. The credit also can be used for payment of Federal Gift Taxes during that individual's lifetime.
Uniform Premium: A rating structure in which one premium applies to all Insureds, regardless of age, sex, or occupation.
Uniform Provisions: Statutory policy provisions of Health Insurance Policies which specify some of the rights and obligations of the Insured and the company. These provisions, with some modifications, are part of the insurance laws of all 50 states and the District of Columbia.
Uninsurable Risk: A risk that is not acceptable for insurance due to excessive risk, moral hazard or other factor.
Uninsured/Underinsured Motorist Coverage: A form of insurance that pays the policyholder and passengers for bodily injury caused by the owner or operator of an uninsured or inadequately insured automobile.
Unit Owner's Excess Insurance: Coverage, generally added by endorsement, which expands the Insured's coverage to include damage or loss to alterations, fixtures, and improvements within individual units owned by the unit owner, caused by the insured perils. This includes damage to air conditioners, clothes washers, clothes dryers, cooking ovens, cooking ranges, dishwashers, floor coverings, countertops, kitchen cabinets, refrigerators and freezers. This coverage applies as excess insurance over any other valid and collectible insurance that would apply in the absence of this policy.
Universal Life Insurance: A flexible premium Life Insurance Policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at a rate which may change from time to time. [MORE]