Glossary T - Z

Third Party

An individual other than the policyholder or the insurance company who has suffered a loss and may be able to collect compensation under the policy due to the negligent acts or omissions of the policyholder.

Third Party Over

The legal doctrine that involves an injured employee bringing suit against a third party who for one reason or another is able to bring an action against the employer.

Underwrite

The process to evaluate the insurance application and independent sources in order to verify the information provided and to determine the acceptability of the risk.

Underwriter

The person who performs the underwriting process to accept, reject, or modify risks on behalf of the insurer.

Unearned Premium

The portion of the written premium applicable to the unexpired or unused part of the policy period for which the premium has been paid. For Example: in an annual premium policy 11/12 of the premium is unearned at the end of the first month of the policy.

Waiver

The relinquishment of a known right, which may be expressed or implied.

Written Premium

The total premium on all policies written by an insurer during a specified period of time, regardless of what portion has been earned.

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