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Insurance Glossary - U

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 polices. Often referred to as a personal umbrella policy.

Unallocated Benefit
A policy provision providing reimbursement up to a maximum amount for the cost of all extra miscellaneous hospital services, but not specifying how much will be paid for each type of service.

Underwriter
1) a company that receives the premiums and accepts responsibility for the fulfillment of the policy contract; 2) the company employee who decides whether or not the company should assume a particular risk; 3) the agent who sells the policy.

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. It excludes investment transactions and federal income taxes.

Unearned Premium
The portion of a premium that a company has collected but has yet to earn because the policy still has unexpired time to run.

Unified Credit
a one-time credit of $192,800, usually applied against Federal Estate Taxes, that is available to every individual's estate. The credit also can be used for payment of Federal Gift Taxes during that individual's lifetime.

Uniform Premium
A rating structure in which one premium applies to all insured's, regardless of age, sex, or occupation.

Uniform Provisions
Statutory policy provisions of health insurance policies which specify some of the rights and obligations of the insured and the company. These provisions, with some modifications, are part of the insurance laws of all 50 states and the District of Columbia.

Uninsurable Risk
One not acceptable for insurance due to excessive risk.

Uninsured/Underinsured Motorist Coverage
A form of insurance that pays the policy holder and passengers in his/her car for bodily injury caused by the owner or operator of an uninsured or inadequately insured automobile.

Universal Life Insurance
A flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rate which may change from time to time.

Utilization review
Process for deciding whether to approve treatment or referrals recommended by doctors. These reviews are required in managed care and some traditional plans.