Life Insurance Glossary - U

Uberrimae Fidei
Means "Utmost Good Faith'. The basis of all insurance contracts - both parties to the contract are bound to exercise good faith and do so by a full disclosure of all information material to the proposed contract.

Umbrella Liability
Insures losses in excess of amounts covered by other liability insurance policies; also protects the insured in many situations not covered by the usual liability policies

Under-insurance
The situation where the Sum Insured is less than the total value of property at risk.

Underwriter
The company receiving premiums and accepting to cover the risk. Also, the person employed by the company who decides whether the company should accept a particular proposal for insurance or application for revival

Underwriting
The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.

Underwriting Profit or Loss
The amount of money, which an insurance company gains or loses as a result of its insurance operations

Unearned premium
That portion of the original premium for which protection has not yet been provided because the policy still has some time to run before expiration.

Unenforceable Contract
This is one, which lacks some evidential features. The contract is a valid one otherwise, but could not be enforced in a court of law

Uninsurable Risk
Risks not acceptable for insurance due to excessive risk

Utmost Good Faith
A duty imposed on both parties to an insurance contract. The legal duty implies full disclosure of all facts material to the contract during negotiations of the contract.


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