Risk & Insurance Glossary - T

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

TARGET RISK – (1) A large risk that attracts unusually keen competition among insurers, agents, or brokers; (2) A large hazardous risk on which insurance is difficult to place.
TARIFF RATE – A rate established by the rating organization having jurisdiction over the class and territory; e.g., the New England Fire Insurance Rating Association.
TERM – The length of time for which a policy or bond is written.
TERM POLICY – An insurance contract written for a period of more than one year.
TERM RATE – A premium rate for a term policy.
THEFT – Taking and removing property with intent to deprive the rightful owner of it. A broader term than robbery, burglary, embezzlement, etc.
THIRD PARTY ACTION – An action brought by a defendant in one action against another party.
THIRD PARTY INSURANCE – Protection for the insured against liability arising out of bodily injury to others or damage to their property.
TIME ELEMENT – A phrase used to describe a kind of insurance which reimburses the policyholder for the loss of use of property. The amount of loss depends on the length of time it will require to rebuild or repair or recover.
TITLE POLICY – The title insurance is provided as an alternative to an abstract of title. The insurance is written by a title insurance company and payment is made by the owner. Under the policy an agreement binds the insurer to indemnify the insured for such losses that are specifically delineated by reason of defects in the title of the real estate providing there are no exceptions listed in the title insurance policy.
TORT – A legal wrong arising from a duty owed to people generally, rather than specifically as by contract.
TOTAL LOSS – (1) Loss to the insured of the entire value of a lot of goods or other property by destruction, damage. or deprivation; (2) Loss entailing the payment of the face amount of an insurance contract.
TRANSPORTATION INSURANCE – Insurance against loss to personal property while in the course of transportation.
TREATY – Generally a reinsurance contract between insurance companies.
TRIP TRANSIT INSURANCE – Transportation insurance against loss to personal property on a single trip between two specified points.
TRUST OR COMMISSION CLAUSE – A clause extending the coverage of the insurance contract to the insured's interest in and legal liability for property belonging to others and held by the insured in trust, on commission, on storage, for repairs, or otherwise held.
TUITION FEES INSURANCE – Coverage of losses to schools due to interruption that might hinder student enrollment.