Risk & Insurance Glossary - U

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UBERRIMAE FIDEI – Utmost good faith. The basis for insurance contracts, which all parties to the contract are to exercise good faith and fully disclose all material information.
UMBRELLA INSURANCE – A broad liability policy, usually requiring the insured to carry primary or underlying insurance. An umbrella policy generally differs from an excess policy in that the umbrella usually provides some coverage not available from underlayers, subject to a significant self–insured retention.
UNDERINSURANCE – A situation in which not enough insurance is being carried to cover the value of the property or to satisfy a coinsurance clause.
UNDERWRITER – (1) A person whose duty it is to select risk for insurance and to determine in what amounts and on what terms they will be accepted by an insurer; (2) An insurer.
UNDERWRITING PROFIT – That portion of the earnings of an insurance company that comes from the function of underwriting. It excludes the earnings from investments.
UNEARNED PREMIUM – That part of a premium that applies to the unexpired part of the policy period.
UNEARNED PREMIUM RESERVE – A reserve equal or approximately equal to the total of the unearned premiums on insurance in force with an insurer.
UNSATISFIED JUDGMENT FUND – A state fund for the reimbursement of automobile accident victims who cannot collect damages because of insolvencies or lack of insurance of the other party.
USE AND OCCUPANCY INSURANCE – Insurance contract that indemnifies against certain expenses such as payroll, and reduced income as a result of the insured peril such as fire.