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Insurance Glossary
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There are 11 names in this directory beginning with the letter U.
Uberrima Fidei
The doctrine of Utmost Good Faith. This is an implied term in all contracts of insurance by virtue of the Insurance Contracts Act.

Umbrella Cover
Reinsurance protection for several classes of business, usually arranged by combining the retentions and/or deductibles of the different classes and protecting them by one excess of loss contract.

Under Insurance
A condition in which not enough insurance is held to cover the value of the insured property. This is particularly common with home contents insurance.

Underlying Layer
A layer of excess of loss business that operates immediately below another.

A technical person trained to evaluate risks and determine premium rates.

The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify

Unearned Premium
General meaning is the premium that is owed to the insured if the policy is cancelled.

Unenforceable contract
A contract which has the requirements of a valid contract, but cannot be legally enforced for other reasons.

Unfunded reserve
This arises when the provision made for expected losses is not backed by any assets set aside for such losses.

Uninsured perils
Events not mentioned in the policy document, but which are clearly outside cover.

Utmost good faith
The doctrine requires all parties to an insurance contract to act towards each other at all times and in respect to all things with the utmost good faith. The Insurance Contracts Act 1984 does not define the implied term "utmost good faith"; however, it has to do with matters of fairness, honesty, reasonableness, community standards of decency and fair dealing.
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