Dictionary of Financial Terms -
- Unapproved Scheme
- An occupational pension scheme that is not approved by the Inland
Revenue and which cannot benefit from the same favourable tax treatment as an approved scheme.
- A technician trained in evaluating risks and determining rates and
coverage for them. The term derives from the practice at Lloyd's of each person willing to accept a portion of the risk
writing his name under the description of the risk.
- Where an insurance company takes into account known facts like your
age, sex and health, in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are
calculated after taking these factors into consideration.
- Underwriting Bar
- The amount to which the benefits pertaining to a member of a group
insurance scheme may increase without the need for further underwriting.
- Underwriting Decision
- A decision made by insurance underwriters based on evidence
supplied. In group insurance, it is often used to refer to decisions pertaining to individual members based on medical
- Unearned Premium
- That portion of a premium already received by the insurer for which
protection has not yet been provided.
- Unit linked endowment
- A fixed term savings plan with an element of life cover. Your
savings go into an underlying fund of investments like shares and the eventual return you get depends on the
performance of these investments.
- Unit Rated
- A Unit rate is often used in determining the premium for large
(more than 20 lives) group insurance schemes. In this basis of costing, the Unit Rate is applied to the total benefits
provided under the scheme. The rate is determined with reference to banded membership data and other underwriting
adjustments. For group life insurance the rate is usually expressed per £1000 of death benefit and for dependants
pensions per £100 of insured pension.
- Unit Trust
- A trust set up as a pooled investment fund. The portfolio of
investments is unitised in order to allow investors to buy and sell units.
- Unrestricted Funds
- In the context of funding, those grants which do not specifically
stipulate how the money is to be spent by the grantee.
- Upper Earnings Limit
- The maximum earnings on which National Insurance contributions are
payable by employees.
- Utmost Good Faith
- The principle of insurance which requires a proposer to give all
relevant information to the insurer.
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