Insurance Terms: T

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Insurance Terms-T
  • Term Life Insurance is a form of life insurance covering an insured person for a specific period of time, which becomes the “term” of the policy. Benefits are paid to the beneficiary only if the insured person dies during the term specified on the policy. Term life policies are usually renewable with increased premiums based on age.
  • Term Rider is insurance that may be added to a whole life insurance policy.
  • Territorial Rating is the method of classifying risks based on the geographic location. When the specific location of the insured or insured property may have an impact on the cost of losses and claims. For example with Auto insurance it the statistical chance of an accident or theft is higher in an urban area than in a rural one, the auto insurance may be rated based on the territory.
  • Terrorism Coverage is often included in standard commercial insurance policies. Prior to September 11, 2001 this coverage was nearly free and included automatically but, since 9/11 the costs of this insurance has increased substantially to reflect the current level of higher risk.
  • Third-Party Coverage is liability coverage a policyholder may purchase to protection against possible lawsuits filed by a third party. The policyholder and insurance company are the first and second parties to the insurance contract and the claimant is the third party.
  • Title Insurance is insurance that indemnifies the owner of real estate property in the event clear ownership of property is challenged by the discovery of faults in the real estate title.
  • Tort is a legal term referring to a wrongful act resulting in injury or damage to another person who may take civil court action, or other legal action.
  • Tort Laws are the laws governing negligence, intentional interference, and other wrongful acts of which civil action can be initiated.
  • Total Disability as disability insurance defines is an insured’s disability meeting the requirements of the definition of total disability. After a disability has existed for a certain time period, total disability may exist if an insured can no longer work in any occupation the insured is reasonably educated, trained or experienced.
  • Total Loss is when the condition of an auto or other property is damaged so extensively that repair costs exceed the value of the vehicle or property.
  • Towing and Labor Coverage is generally offered as an optional coverage on Auto insurance policy to cover the towing and labor charges in case of roadside breakdown.
  • Travel Accident Insurance are policies which are issued as a limited contract to cover an accident that happens only during the time an insured person is traveling on business for an employer.
  • Travel Insurance is coverage for problems related to traveling. Typically travel insurance may include coverage for trip cancellation caused by illness, lost luggage and other incidents that may take place while in travel.
  • Twisting is the illegal insurance sales practice whereby an agent misrepresents the features of an insurance contract in order to convince the contract owner to replace his current contract, usually to disadvantage of the policyholder either by type and amount of coverage or costs of premiums.

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