ReinstatementThe process by which a life insurance company puts a policy back in force after it lapsed because of nonpayment of renewal premiums.
Renewable Term InsuranceTerm insurance providing the right to renew at the end of the term for another term or terms, without evidence of insurability.
RenewalA form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan at the beginning of the…
Rental Reimbursement CoverageThis coverage pays - up to a defined amount - your expenses to rent a vehicle if you have a loss covered under comprehensive or collision benefits.
Rental Reimbursement/Transportation ExpensesAn optional policy benefit that pays the rental fee (usually $15 to $20 per day) if you must rent a vehicle for a reasonable time while your vehicle is…
Renters insuranceA form of insurance that covers a policyholder’s belongings against perils. It also provides personal liability coverage and additional living expenses.
Replacement CostPays the dollar amount needed to replace the structure or damaged personal property without deducting for depreciation but limited by the policy’s…
Replacement Cost Value (RCV)(RCV)The cost to replace property with the same kind of material and construction without deduction for depreciation.
Residual marketInsurers, such as assigned risk plans and the Texas FAIR Plan, that exist to provide coverage for those who cannot get it in the standard market.
Return premiumThe premium returned to an insured for canceling or amending a policy.
RiderA written agreement attached to the policy expanding or limiting the benefits otherwise payable under the policy. Same as an "endorsement."
Scheduled itemsArticles such as jewelry, furs, stamps, coins, guns, computers, antiques, and other items that may exceed normal policy limits in your regular homeowner…
SettlementAfter negotiating, the amount you agree to accept from the insurance company as full payment for your loss.
Settlement OptionOne of several ways, other than immediate payment in a lump sum, in which the insured or beneficiary may choose to have the policy proceeds paid.
Sewer Back-up and Sump Pump Overflow CoverageCoverage available for an additional premium to your homeowners insurance policy that pays for damage caused by sump pump failure or sewer back-up.
Short rate cancellationCancellation by the insured of an insurance policy for which the returned unearned premium is diminished by administration costs incurred when the…
Single interest insuranceInsurance coverage for only one of the parties having an insurable interest in that property.
Single-Family ResidenceA residential single family dwelling. Incidental office, professional, private school, or studio occupancies, including a small service operation, are…
Stacking of UM or UIMThis coverage allows you to either multiply the amount of uninsured or underinsured motorist coverage by the number of vehicles on your policy, or to…
Staff adjusterEmployee of the insurance company’s claims department.
Submit-for-RateAn application for flood insurance on a building for which no risk rate is published in the Flood Insurance Manual.
SubrogationThe process of recovering the amount of claims damages paid out to a policyholder from the legally liable party.
SurchargeAn extra charge applied to the premium by an insurance company, usually applied as a result of at-fault accidents or moving violations.
Surplus linesCoverage from out-of-state companies not licensed in Texas but legally eligible to sell insurance on a "surplus lines" basis.
Term InsuranceA plan of insurance that covers the insured for only a certain period of time (the term), not for his or her entire life.
Term RiderTerm insurance that is added to a whole life policy at the time of purchase or that may be added in the future.
Third PartyAn individual other than the policyholder or the insurance company who has suffered a loss and may be able to collect compensation under the policy, due…
Third Party Administrator (TPA)(TPA)An organization that performs managerial and clerical functions related to an employee benefit insurance plan by an individual or committee that is not an…
Third-party claimA claim filed against another person’s insurance policy.
Total LossWhen the cost to repair a vehicle approaches or exceeds the vehicle’s actual cash value.
Towing and Labor CoverageReimburses you when your vehicle breaks down or is damaged and must be towed to a repair shop or to another location.
Towing CoverageAn optional coverage of an automobile policy that pays a specified amount for towing and related labor costs.
Umbrella Liability InsuranceA policy that "floats" above your other coverage. You must carry a certain amount of underlying liability coverage before you may buy an umbrella policy.
Underinsured Motorist (UIM)(UIM)This covers bodily injury losses for you or your passengers if you are hit by an at-fault motorist who does not have enough insurance to cover your claim.
Underinsured Motorist Bodily Injury Coverage (UIM)(UIM)Is coverage for any bodily injury resulting from the operation of a motor vehicle, which is covered under a liability policy at the time of the injury…
UnderwriterAn individual in an insurance company who determines what insurance risks will be accepted and on what terms.
UnderwritingThe purchase for resale of a new issue of securities by an investment dealer or group of dealers.
Unearned premiumThe portion of the premium for the remaining time period that the policy will not be in force.
Uninsured Motorist (UM)(UM)This covers bodily injury for you or your family if you are hit by an at-fault uninsured motorist.
Uninsured motorist protectionCovers the insured and family members if injured by a hit-and-run motorist or a motorist without liability protection, if the other driver is at fault.
Universal Life InsuranceA flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of…
Unsatisfied judgment fundA special fund which, subject to several restrictions, pays individuals for bodily injury arising out of the use of a motor vehicle for their damages if…
Variable Life InsuranceLife insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid.
Waiting PeriodThe time between the date of application and the policy effective date.
Waiver Of PremiumA provision that sets certain conditions under which an insurance policy would be kept in full force by the company without the payment of premiums.
Watercraft EndorsementApplies to small motorboats and sailboats and broadens your personal liability and medical payments coverage on them.
Wave Height AdjustmentA measurement that is added to the base flood elevation for V Zones shown on the Flood Insurance Rate Map published prior to 1981.