Umbrella Policy :: Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the amount stated in the underlying policies, terms of coverage are sometimes broader than those of under-lying policies.

 

Under Insurance :: The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

 

Underwriting  :: The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.

 

Undischarged Insolvent :: The person who has declared insolvency but not paid off his creditors not has entered into any scheme of settlement with them. He is incapable of entering into any contract.

 

Unexpired Risk Reserves  :: Fund that an insurance company sets up to cover a shortfall in an insurance company’s unearned premium reserve.

 

Unvalued Policy :: Insurance policy that has a sum insured against each item of property, but not acknowledge by the insurer as true values. In the event of a claim, the insured must prove the actual value of the item.

 

Utmost good Faith :: Phrase referring to contracts of insurance in which both parties must disclose all the facts that may influence the other’s decision to enter into the contract, whether they are asked to do so or not. If either party has not acted in the utmost good faith, then the contract may become void.