Farmers One Restaurant Place - Insurance & Safety

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UNDERLYING: In respect to excess of loss reinsurance coverages, refers to that amount of risk reinsured in terms of possible primary or first-loss, which is deductible before the insurance or reinsurance comes into action.
UNDERWRITE: Used rather loosely to denote the entire process of insuring. The process of selecting, classifying, evaluating, rating, and assuming risks.
UNDERWRITER: One who determines the risks to be solicited and plans programs of insurance. The term is also applied to those persons who actually accept or reject risks. Thus an agent is often referred to as a "field underwriter" in contrast to the Regional or Home Office Underwriters.
UNDERWRITING EXPENSES: All operating expenses of an insurance carrier exclusive of real estate and investment expense, adjusting expense, balances charged off, dividends, etc.
UNDERWRITING PROFIT: The remainder found by deducting incurred losses and expenses from earned premiums.
UNDISCLOSED INTEREST: Extending coverage to some unknown person or persons. An everyday example of this is the omnibus clause in the automobile policy.
UNEARNED PREMIUM: That portion of the premium which has not yet been earned and which is consequently owed to the policyholder if the policy is canceled.
UNEARNED PREMIUM RESERVE: A liability set up in insurance carriers' financial statements which, in theory, represents the aggregate amount which a carrier would require in order to return to each policyholder the unearned portion of the premium of each policy in force, should the carrier retire from business and cancel all outstanding policies as of a given date.

UNFAIR COMPETITION AND PRACTICE: A number of states have set out specifically those deeds and acts of an insurance agent, which are deemed unfair competition and practice. They include twisting, rebating, defamation of persons or companies, and committing any act tending toward monopoly of the business.
UNFUNDED TRUST: See Life Insurance Trust.
UNIFORM SIMULTANEOUS DEATH ACT [LIFE]: The Act states that, when an insured and beneficiary die at the same time, it is presumed that the former (the insured) survived the latter.
UNILATERAL [LIFE]: A distinguishing characteristic-of a life insurance contract in that it is only the insurance company that pledges anything. The policy owner doesn't even promise to pay premiums; therefore, it is really a one-sided contract favoring the policy owner.
UNINSURED MOTORIST COVERAGE: Also called family protection coverage. Provides protection to the insured in case of accident with another automobile, the owner of which does not carry insurance.
UNIVERSAL LIFE: A flexible premium, two-part contract containing renewable Term insurance and a cash value account that generally earns interest at a higher rate than in a traditional policy. The interest rate will vary. Premiums are deposited in the cash value account after the company deducts its fee and a monthly cost for the Term coverage.
UPDATE (ACS): To modify a file with correct information.
UPPER LIMIT: In liability insurance, the maximum amount the company will pay for death or injury of two or more persons in one accident.
USE AND OCCUPANCY INSURANCE: Protection against actual loss sustained including loss of net profits and such fixed charges and expenses as must continue during enforced disruption of manufacturing and business operations caused by fire or other contingencies insured against.

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VALUATION: The process of determining a company's liabilities under its policy obligations is known as policy valuation. The process of determining the value of a company's investments is known as asset valuation. Minimum valuation standards are prescribed by state laws.
VALUED POLICY: A form of policy in which the amount of indemnity to be paid in case of loss is fixed by the terms of the policy itself and does not depend on adjustment. This should not be confused with a Stated Value Policy.
VANDALISM AND MALICIOUS MISCHIEF (V&MM): Willful physical injury to or destruction of property.
VARIABLE ANNUITY: Similar to a traditional fixed annuity. Retirement payments will be made periodically to the annuitants, usually over the remaining years of their lives. Under the variable annuity, there is no guarantee of the dollar amount of the payments. Payments will fluctuate up and down in accordance with the value of an account invested primarily in common stocks.
VESTING: The right of employees under a retirement plan to retain part or all of the annuities purchased by the employer's contributions on their behalf, or, in some plans, to receive cash payments or equivalent value, on termination of their employment after certain qualifying conditions have been met.

VETERANS' GROUP LIFE INSURANCE (VGLI): A low-cost, nonrenewable but convertible 5-year Term insurance to which SERVICE MEMBERS' Group Life Insurance (SGLI) is converted automatically at the time an insured service member is discharged, separated, or released from active duty. At the end of the five-year period, the veteran may convert his or her VGLI to an individual policy with any company which participates in the VGLI program.

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WAIVER: The voluntary surrender of a right known to exist.
WAIVER OF PREMIUM DISABILITY BENEFIT: Nearly all life insurance companies will add to their contracts, upon payment of a small additional premium, a clause which provides that, in event the insured is totally and permanently disabled, the insurance policy will be continued in full force even though the necessity of paying further premiums is waived by the company during the disability period.
WAR CLAUSE: A clause in an insurance contract relieving the insurer of liability, or reducing its liability, for specified loss caused by war.
WAREHOUSEMAN: A person in the business of receiving goods and merchandise to be stored in his/her warehouse.
WARRANTY: A statement made by the applicant which becomes a condition of coverage for the term of the contract. Strictly speaking, a false warranty voids the policy even if it is not material. In practice, U.S. Courts are inclined to be lenient towards a policyholder who has made a false warranty which does not materially affect the risk, but British Courts still insist upon the truth of warranties. Also, a clause in an insurance contract presenting a condition relating to the degree of hazard and non-compliance which invalidates the contract.
WARRANTIES: Under the laws of most states, all statements made by the applicant, whether in the application blank or to the medical examiner, are considered, in the absence of fraud, to be representations and not warranties. A warranty must be literally true, and a breach of warranty is sufficient to render the policy void whether the matter warranted is material or not and whether or not it had contributed to the loss. A representation need be only substantially true. As a general rule, representations are considered fraudulent only when they relate to a matter material to the risk.
WEEKLY PREMIUM INSURANCE: Also sometimes called Industrial insurance. Life insurance issued on individual lives, usually without medical examination, at ages from birth to 70 years, in amounts less than $1,000 with premiums payable weekly to an agent who calls at the home to collect. May be sold in multiples of $100, or in premium multiples of a few cents per week where the face amount varies according to the age and plan of policy issued.
WHOLE LIFE; ORDINARY LIFE; STRAIGHT LIFE: These three terms are synonymous and are applied to the type of policy which continues during the whole of the insured's life and provides for the payment of amount insured at death, or at a definite age (96 on the basis of American Experience Table of Mortality or at age 100 on the CSO Table) if the insured is still living at that age.
WILL: A will is a written instrument, executed in the form required by law, by which a person makes a disposition of his or her property, to take effect at death.
WIRE MESH SCREEN: A screening constructed of No. 9 gauge wire (3/16" thick) or heavier, interwoven to form a diamond pattern. Such screens should be bolted permanently in place if possible. If demountable, the supports must be substantially bolted and the screen padlocked to them when in place.

WORKERS' COMPENSATION: The benefits (weekly payments, medical, hospital, etc. bills) an employer is bound by law to provide for his/her employees who are injured on the job, regardless of fault. Every state in the U.S.A. now has a workers' compensation law. These laws vary in detail, but the general intent is the same, namely to make sure that an employee, who is disabled through his/her work, shall not become a public charge.
WORKING BURGLAR ALARMS: Devices of various types which give warning of entry into premises by unauthorized persons. Burglary insurance premium discounts are allowed for burglar alarm systems approved by the Underwriters Laboratories.

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YEARLY RENEWABLE TERM INSURANCE: Renewable Term Life insurance with which the successive terms are for one year each. The right of renewal may extend for ten years or more, or to a specified age, such as 60 or 65.

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ZONE: An identifiable area in which over-the-road exposures on commercial vehicles operating in or through that area are similar. A territory is different from a zone only in size. In rating a commercial vehicle, local or intermediate, the rate for the territory in which the vehicle is principally garaged or used. In long distance operations the rates used are inclusive of all zones to which a vehicle travels.