Tenants Policy:
See Renters Policy.
Term:
A period of time for which a policy is issued.
Term Insurance:
Life insurance protection during a limited number of years
but expiring without value if the insured survives the stated
period.
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.
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.
Theft Insurance:
Protection for loss of property due to stealing, including
burglary, robbery and larceny.
Third-Party Administrator:
Outside group that performs clerical functions for an insurance
company.
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.)
Threshold:
Used in no-fault auto insurance to remove non-serious cases
from the tort system by establishing a point of “threshold” that
must be met or exceeded to sue in tort. Of those states and
the District of Columbia that have no-fault auto insurance,
many, including the District of Columbia, have a threshold
in their plan. There are three types of thresholds: the dollar
threshold, the disability threshold and the verbal threshold.
Title Insurance:
An insurance contract relating to real estate described in
the policy which protects the insured landowner against loss
or damage by reason of defects, liens or encumbrances in the
insured title, if these faults exist at the date of the policy
and are not expressly excluded from its terms.
Tort:
Any wrongful act, damage or injury done willfully, negligently
or in circumstances involving strict liability, but not involving
breach of contract, for which a civil lawsuit can be brought.
Tort Law:
The body of law governing negligence, intentional interference,
and other wrongful acts for which civil action can be brought,
except for breach of contract, which is covered by contract
law.
Tort Reform:
Refers to legislation designed to reduce liability costs through
limits on various kinds of damages and through modification
of liability rules.
Total Disability:
Disability that prevents a person from performing (a) any
of his/her occupational duties, or (b) any duties for which
he/she is reasonably qualified. Definitions vary within policies.
Total Loss:
The condition of an automobile or other property when damage
is so extensive that repair costs would exceed the value of
the vehicle or property.
Towing Coverage:
Insures against charges for towing and road service at the
place of disablement, with a maximum amount stipulated for
each occurrence.
Transparency:
A term used to explain the way information on financial matters,
such as financial reports and actions of companies or markets,
are communicated so that they are easily understood and frank.
Travel Insurance:
Insurance to cover problems associated with traveling, generally
including trip cancellation due to illness, lost luggage and
other incidents.
Treaty Reinsurance:
A general reinsurance agreement between the ceding or primary
company and the reinsurer containing the contractual terms
under which a portion or all of the primary company’s
business or a particular class is passed on to the reinsurer.
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