Insurance Glossary
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There are 5 names in this directory beginning with the letter T.
Term
Under insurance law it means the period of time for which a policy is issued.

Third party
A person or entity who is not a party to an insurance contract but who has an alleged or actual right of action for injury or damages against an insured under a contract of insurance.

Three Hundred and Sixty Fifths System
A method of calculating unearned premium. This is the most accurate of all methods as it is a strict pro rata. See Eighths system, and Twenty-fourths system.

Trustee
A person who is responsible for the property which is the subject of the trust. The trustee holds the property for the benefit of others. The property may be held in the name of the trustee but is never the personal property of the trustee. For example, the trustees of a superannuation fund hold the assets of the fund for the benefit of the members of the fund.

Twenty-fourths system
A method of calculating unearned premiums. Premiums accounted for in bulk on a monthly basis are assumed to attach on average on the middle day of each month. Therefore, at the end of a calendar year, 23/24ths of premium booked in January is assumed to be earned, with 24th unearned. 21/24ths of February policies earned, and 3/24ths unearned, and so on. See also Eighths system, and 365ths system.
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