Glossary

U

Underinsurance
When the sum insured is not enough to cover the maximum possible loss or damage. Under the condition of average an insurance firm may under pay a claim by the same percentage that the insured under-insured.

Underwriter
This is the person who decides whether to accept a risk and calculates a premium to be charged to the insured.

Utmost Good Faith
This refers to the principle of insurance that requires a proposer to give all relevant information to the insurer.