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TriTech Services Insurance Tax

  • Tax Glossary



    TriTech Services, Inc. - Tax Glossary
     
           

     

    Umbrella Policy:

    Coverage for losses beyond the limits of underlying property-casualty, homeowners, or auto insurance policies. While the umbrella applies to losses over the dollar amount in underlying policies, coverage terms are sometimes broader than those specified in the underlying policies.

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    Unaffiliated Investments:

    These investments represent total unaffiliated investments as reported in the exhibit of admitted assets. It is cash, bonds, stocks, mortgages, real estate and accrued interest, excluding investment in affiliates and real estate properties occupied by the company.

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    Unallocated contract:

    A contract under which premiums and contributions are deposited to a fund, rather than used immediately, to purchase annuities for benefit plan participants.

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    Underwriter:

    The individual trained in evaluating risks and determining rates and coverages for them. Also, an insurer.

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    Underwriter:

    The individual trained in evaluating risks and determining rates and coverages for them.

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    Underwriting Expense Ratio:

    This represents the percentage of a company's net premiums written that went toward underwriting expenses, such as commissions to agents and brokers, state and municipal taxes, salaries, employee benefits and other operating costs. The ratio is computed by dividing underwriting expenses by net premiums written. The ratio is computed by dividing underwriting expenses by net premiums written. A company with an underwriting expense ratio of 31.3% is spending more than 31 cents of every dollar of net premiums written to pay underwriting costs. It should be noted that different lines of business have intrinsically differing expense ratios. For example, boiler and machinery insurance, which requires a corps of skilled inspectors, is a high expense ratio line. On the other hand, expense ratios are usually low on group health insurance.

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    Underwriting Expenses Incurred:

    Expenses, including net commissions, salaries and advertising costs, which are attributable to the production of net premiums written.

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    Underwriting Guide:

    Details the underwriting practices of an insurance company and provides specific guidance as to how underwriters should analyze all of the various types of applicants they might encounter. Also called an underwriting manual, underwriting guidelines, or manual of underwriting policy.

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    Underwriting risk:

    Calculates the risk from underestimating liabilities from business already written, or inadequately pricing current or prospective business.

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    Underwriting:

    The process of classifying applicants for insurance by identifying such characteristics as age, gender, health, occupation, and hobbies. People with similar characteristics are grouped together and charged a premium based on the group's level of risk and insurability. The process also includes rejection of those risks that do not qualify.

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    Unearned Premiums:

    That part of the premium applicable to the unexpired part of the policy period.

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    Uninsurable risk:

    Risks for which insurance coverage may not be available.

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    Uninsured Motorist Coverage:

    Endorsement to a personal automobile policy that covers an insured collision with a driver who does not have liability insurance.

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    Universal Life Insurance:

    A type of permanent life insurance that allows the insured, after the initial payment, to pay premiums at various times and in varying amounts, subject to certain minimums and maximums. To increase the death benefit, the insurance company usually requires the policyholder to furnish satisfactory evidence of continued good health. Also known as Adjustable Life Insurance.

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    Usual, Customary and Reasonable Fees:

    An amount customarily charged for or covered for similar services and supplies which are medically necessary, recommended by a doctor or required for treatment.

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    Utilization:

    How much a covered group uses a particular health plan or program.

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