Glossary: U - Z
Uberrimae Fidei: "Utmost good faith". Certain transactions require the utmost of good faith on both sides, and both parties must disclose all relevant facts. It is a basic principle of all insurance contracts.
Umbrella Policy: A special liability policy designed to protect the insured for certain unknown contingencies over and above their normal coverages and limits.
Underinsurance: A situation where the insurance is less than the full value of the property insured. It becomes important with respect to co-insurance clauses where the insured is required to carry insurance to a certain proportion of the cash values.
Underwriter: The insurance company or group that underwrites or insures a particular risk. It is also used as the identification of the individual within the company whose responsibility it is to accept or reject business.
Underwriting Profit (or Loss): The excess of earned premiums over the incurred losses and expenses, shows the underwriting profit. The reverse would show an underwriting loss.
Unearned Premium: The part of the premium which has not been used or earned and which must be returned to the insured in the event of cancellation of policy.
Uninsured Motorist Coverage: This provision covers the insured if their vehicle is damaged in an accident by someone who is uninsured and is unable to pay for the damages.
Unlicensed Insurer: An insurance company not licensed to operate in the Province or in Canada.
Unnamed Insured: Where a policy extends to cover not only the person named as the insured, but others whose names do not appear. The other persons are known as “unnamed insured”.
Unoccupied: When the premises is complete, but no persons temporarily live there, the premises are said to be unoccupied.
Unprotected: A property located in an area not regularly serviced by a fire department.
Vacant: A property is vacant when the normal occupant is absent and does not plan on returning.
Valuation: Same as “appraisal”. Often required for insurance on valuables such as jewellery, furs, and fine art.
Value: The value of an article is the sum of money that would be required to replace it with material of like kind and quality after all allowances for appreciation, depreciation, wear and tear, and obsolescence.
Valued Policy: One where the parties agree at the time of issuance on the value of the property to be insured.
Vandalism or Malicious Mischief: The intentional damaging or destroying of property. It does not necessarily require malicious intent against the owner of the article, but is based largely on a desire to damage or destroy.
Vicarious Liability: Liability imposed upon a person even though he is not a party to the particular occurrence.
Void or Voidable: A contract is void when it is destitute of all legal effect. A voidable contract is one that can be made void at the option of one of the parties.
Volunteer: One who gives service without reward or promise of reward.
Waiting Period: An accident or sickness policy that provides a weekly indemnity benefit that will not become payable until after an agreed-to period of time.
Waiver: A voluntary relinquishment of a known right. A waiver under a policy is required to be clearly expressed verbally and presented in writing.
Waiver of Co-insurance: The waiver of co-insurance states that the co-insurance clause does not apply when the total loss does not exceed a certain percentage of the sum insured or a stated amount.
Warranty: A guarantee or assurance. When the insured applies for an insurance policy, they present certain facts so the insurance companies can decide whether or not they wish to write the risk and what rate should be charged. The information supplied is a warranty on the part of the insured. All other statements are representations. Many policies contain clauses stating that the same condition will be maintained throughout the term of the insurance. These are warranties.
Water-Damage Clause: Coverage for certain specific causes of water damage.
Wind Storm: A movement of air of sufficient violence to be considered a "storm". It is not defined on any meteorological scale.
Without Prejudice: A phrase meaning that any statement made during negotiation or any offer of settlement is not to be interpreted as an admission of liability, or as an admission of the amount of liability.
Witness: One who gives evidence in any case or matter.
Worldwide Coverage: This is the geographical limit of an insurance policy and is generally restricted by territorial or continental boundaries. In some policies, such as personal effects policies, personal property floaters and various other types of floater policies, coverage is applicable anywhere in the world.
Written Premium: The total amount of premium collected on that class of business or on all classes of business.
