Dictionary

term insurance: Insurance covering the insured for only a set period of time. For instance, term life insurance only pays benefits if the person dies within the term set by the insurance policy.

third-party coverage: Liability insurance protecting the insured against lawsuits by other individuals, or third parties. The insured and insurer are considered the first and second parties.

title insurance: Inurance that protects a property owner if faults in the property title are discovered.

tort: A wrongful act that causes injury or damage, which could result in legal action.

underwriting: Analyzing risks so that appropriate insurance rates can be calculated.

uninsurable risk: Risks that make it difficult to get insurance or risks too high for insurance companies to take on. Also called assigned risk.

universal life insurance: Life insurance where benefits are tied to short term interest rates and subject to adjustment. Premiums and benefits can also be changed by the insurer.

variable life insurance: Life insurance registered with the U.S Securities and Exchange commission, with fixed premiums and benefits.

void: A circumstance in which a policy is no longer legally binding.

waiver: May mean either a rider excluding the insurer's liability for certain conditions , the act of giving up a right, or waiving a policy holder's premium payments for a period due to disability.

whole life insurance: An insurance policy with payments that are paid for the life of the insured.