- Ultimate cost
- The total net cost, including the cost of all benefits and expenses, incurred by a pension plan over the life span of the plan.
- Unallocated funding
- A method of funding a pension plan in which the pension funds as a whole are held and managed by a funding agency, often an insurance company, and are not allocated to specific plan participants. When a participant retires, the funding agency either purchases an annuity for the retiree or pays periodic benefits directly from the fund. However, the funding agency makes no contractual promises that it will pay any specific benefit amounts. Contrast with allocated funding.
- Unappropriated earned surplus
- In Canada, the amount of an insurer's surplus remaining after determination of an insurer's reserves, capital, and other surplus amounts.
- Unbundled insurance product
- An insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are each identified in the policy. Some nontraditional products, such as universal life insurance, are unbundled. See also bundled insurance product.
- Unclaimed benefits
- Policy benefits for which no payee can be found. Under typical state statutes for unclaimed property, when an insurer cannot locate anyone entitled to policy benefits, the insurer will hold the unclaimed benefits for seven years and then turn them over to the state. Usually, the unclaimed property statute of the state of the beneficiary's last known address applies. If no address is known, the statute of the insurer's state of domicile will govern.
- Unclaimed property statutes
- Statutes that regulate the disposition of funds for which no owner can be found. Insurers typically hold unclaimed property for seven years. If the rightful owner is not found during this time, the property is turned over to the state. Also known as escheat laws. See also unclaimed benefits.
- Underwriter
- (1) The person who assesses and classifies the potential degree of risk that a proposed insured represents. (2) The person or organization that guarantees that money will be available to pay for losses that are insured against. In this sense, the insurance company is the underwriter.
- Underwriting
- (1) The process of assessing and classifying the potential degree of risk that a proposed insured represents. Also called selection of risks. (2) Providing guarantees that money will be available to pay for losses that are insured against.
- Underwriting department
- The department in a life and health insurance company that selects the risks that the company will insure. The underwriting department tries to make sure that the actual mortality or morbidity rates of the company's insured do not exceed the rates assumed when premium rates were calculated. The underwriter considers an applicant's age, weight, physical condition, personal and family medical history, occupation, financial resources, and other selection factors to determine the degree of risk represented by the proposed insured. This department also participates in the negotiation and management of reinsurance agreements, through which an insurance company transfers some or all of an insurance risk to another insurance company. Also called the new business department.
- Underwriting impairments
- Factors that tend to increase an individual's risk above that which is normal for his or her age.
- Underwriting manual
- A summary of the methods used by a particular insurer to evaluate and rate risks. The underwriting manual provides underwriters with background information on underwriting impairments and serves as a guide to suggested underwriting actions when various impairments are present. See also risk class.
- Underwriting requirements
- Printed instructions that indicate what evidence of insurability is required for a given situation and which of several optional information sources will be needed to provide underwriters with necessary information. Sources of information may include medical records and the results of physical examinations. Underwriting requirements are graduated based on the proposed insured's age and the amount of coverage requested.
- UNEARNED COMMISSION BALANCE (Table: GRP_POL)
- This field holds the writing agents ICE that has been paid but not earned (direct sales only). (direct sales only).
- Unemployment Insurance Act
- In Canada, a federal statute that provides unemployment insurance to almost all persons who are employed in Canada. Benefits are provided to covered employees who are laid off or unable to work due to accidental injury, sickness, or pregnancy.
- Uniform Accident and Sickness Insurance Act
- In Canada, model legislation governing health insurance contracts agreed upon by the Canadian Council of Insurance Regulators (CCIR) and enacted with minor variations by all the common law jurisdictions.
- Uniform Life Insurance Act
- In Canada, model legislation governing life insurance contracts agreed upon by the Canadian Council of Insurance Regulators (CCIR) and enacted with minor variations by all of the common law jurisdictions.
- Uniform Pension Plan (UPP)
- In Canada, a prototype pension plan (see prototype plan) developed by members of the Canadian Life and Health Insurance Association and approved by the appropriate Canadian regulatory authorities, including Revenue Canada.
- Unilateral contract
- A contract in which only one party promises to do something. A life insurance policy is a unilateral contract.
- Uninsurable risk class
- The group of people with a risk of loss so great that an insurance company will not offer them insurance.
- Union welfare fund or union welfare trust
- A fund organized by a union and one or more employers to which contributions are made by the employer(s) so that group benefits can be made available to the union's members.
- UNIT VALUE (Table: SSAPS_ASSETS)
- The Unit Value of the Asset: Value = No. Held * Unit Value
- Unit-benefit formula
- A method of calculating benefits for a defined benefit pension plan based on years of service. The formula may take into account only years of service (for example, $50 per month for each year of service) or years of service and compensation.
- Universal life insurance
- An unbundled whole life insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are expressed separately in the policy. In a universal life insurance policy, any applicable expense charges are deducted from the premium and the remainder of the premium is then credited to the policy's cash value. Each month the insurer deducts the mortality costs from the cash value and credits the remainder of the cash value with interest.
- Unregistered reinsurer
- In Canada, a reinsurer who is not licensed to accept reinsurance in a given jurisdiction. Contrast with registered reinsurer.
- USER RECONCILED (Table: BANK_TRANSACTIONS_DONE)
- User who reconcile transaction with policy
- Utilization review
- A method of claims review whereby the insurer analyzes a case, either prospectively, concurrently, or retrospectively, to determine if the treatment given is necessary and appropriate. See also managed care.
- UV KEY1 (Table: SCHEME_RATES)
- This code indicates how the first part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote a 'table-type' or grouping of related unit values information (for instance, to group all unit values relating to a type of plan). It may be prefixed by '[', which indicates that the system will determine the rate by using the named subroutine. As the most often used value for the Unit Table is the plan code, a list of plan codes is displayed as the possible options; the Unit Table does not have to be a plan code.
- UV KEY10 (Table: SCHEME_RATES)
- For future use
- UV KEY2 (Table: SCHEME_RATES)
- This code indicates how the second part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote that the risk is to be set - from client, from policy, or to 'not applicable'.
- UV KEY3 (Table: SCHEME_RATES)
- This code indicates how the third part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote that the sex is to be set - from client, or to 'not applicable'.
- UV KEY4 (Table: SCHEME_RATES)
- This code indicates how the fourth part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote that the death benefit is to be set - from policy, or to 'not applicable'.
- UV KEY5 (Table: SCHEME_RATES)
- This code indicates how the fifth part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote that the age of the client(s) is to be set.
- UV KEY6 (Table: SCHEME_RATES)
- This code indicates how the sixth part of the key to the UNIT VALUES table is to be formatted. How this code is used is dependent on the system installation; it may be used to denote that type of rates being used - whether for premium calculation or current cost of insurance, for instance.
- UV KEY7 (Table: SCHEME_RATES)
- This field will allow entry of the second age.
- UV KEY8 (Table: SCHEME_RATES)
- For future use
- UV KEY9 (Table: SCHEME_RATES)
- For future use
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