Third Party
A claimant against the Insured
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Underlying Insurance
The insurer offering/providing the first amount/level of insurance (see also excess of loss/excess layer)
Underwriter
A person who accepts risk in exchange for premium either on their own account or on behalf of an insurer
Utmost Good Faith
The Insured has a duty act honestly and sought to disclose reasonably and accurately all material facts and that any claim is presented honestly and fairly. The Insurer has to assume that the Insured has done so unless there is evidence to the contrary. In other words they have to assume the Insured has acted with utmost good faith in his dealings with the insurer. Any failure to do so is likely to result in the Policy being void
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VoidThe term used when an insurance contract is capable of being
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Warranty
A strict condition applied to a policy which, if breached, entitles an insurer to void the Policy
Wear and Tear
The amount deducted from claims payments allowing for depreciation caused by usage
Without Prejudice
Any offer marked as such cannot be admitted in evidence without the agreement of both parties. Also, any claim paid without prejudice cannot be used as precedent in future cases