Traditional Reinsurance
Reinsurance purchased to relieve risk or reduce exposure to assumed business. Typically bought to reduce a specific risk to the Retention Limit.
Definitions
Totally and permanently disabled
Insured is wholly prevented from working in his or her profession, the disability has continued for at least six months, and an independent medical examiner provides the opinion that the disability will be continuous and permanent and the disability did not result from self-inflicted injury, attempted suicide or alcohol or drug abuse.
Total Insured Value (TIV)
A Clause in a reinsurance contract which stipulates that losses relating to risks which have a total insured value in excess of a given amount will not be protected under the contract. In many contracts this Clause replaced the Target Risk Clause.
Tort Reform
Refers to legislation designed to reduce liability costs through limits on various kinds of damages and through modification of liability rules.
Title examination
The process of examining the public records of deeds, mortgages, liens, court proceedings, taxes, assessments and other records to determine the status of the title to real property.
Title
Ownership. Also, the document providing evidence of ownership, such as title to a motor vehicle.
Time Deposit
Funds that are held in a savings account for a predetermined period of time at a set interest rate. Banks can refuse to allow withdrawals from these accounts until the period has expired or assess a penalty for early withdrawals.
Third-Party Coverage
Liability coverage purchased by the policyholder as a protection against possible lawsuits filed by a third party. The insured and the insurer are the first and second parties to the insurance contract. See First-party coverage
Terrorism Coverage
Included as a part of the package in standard commercial insurance policies before September 11, 2001 virtually free of charge. Since September 11, terrorism coverage prices have increased substantially to reflect the current risk.
Territorial Rating
A method of classifying risks by geographic location to set a fair price for coverage. The location of the insured may have a considerable impact on the cost of losses. The chance of an accident or theft is much higher in an urban area than in a rural one, for example.