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- UMBRELLA LIABILITY INSURANCE
- A form of liability insurance that provides excess coverage over the basic homeowners and automobile insurance policies.
- UNDERWRITER
 
- The individual at an insurance company that performs the underwriting function.
The Investment Banker who agrees to purchase a new issue of securities from the issuing company and distributes it to investors.
- UNDERWRITING
- The process by which an insurance company accepts or rejects and classifies a risk in order to charge the proper premium. An underwriter performs this process in an insurance company.
In life and health insurance, the process may involve review of the application, home office specimen, blood chemistry profile, inspection report, attending physician statement, and depending on the size of the policy and the age of the proposed insured, a paramedical or medical examination. Underwriting may also take the form of financial underwriting. This is more important in business insurance, large face amount policies and disability income policies.
- UNDERWRITING RISK CLASS
- An underwriting classification of risk. The more common classes for life insurance are as follows:
- UNIFIED CREDIT
- A credit to the federal gift and estate taxes. The credit may be applied directly against lifetime gifts and estate taxes.
- UNIFORM GIFTS TO MINORS ACT (UGMA)
- A law enacted to provide a means of transferring property to a minor without the need for a formal trust and corresponding restrictions relating to guardianship of a minor's property. The donor appoints a custodian to manage the property that must be turned over to the minor after the age specified in the UGMA law of the state in which the gift was made.
- UNIFORM TRANSFER TO MINORS ACT (UTMA)
- A law adopted by most states whereby a direct gift to a minor is allowed without establishing a formal trust or guardianship. The gift is managed by a custodian appointed by the donor until the specified age (set by state law usually 18 or 21) is attained.
- UNINSURABLE RATING
- An underwriting risk class assigned to an applicant for life insurance that do not meet the underwriting requirements due to medical or nonmedical impairments. Some joint survivorship policies will accept one uninsurable applicant.
- UNIT INVESTMENT TRUST
- An investment company organized under a trust indenture rather than a corporate charter. Investments are made in a fixed portfolio usually consisting of bonds, and deposited with a trustee, that is normally a bank. The trust is scheduled to be liquidated on a specified date, although there is a limited market for trust units or shares that are generally held to maturity. The return on unit trusts is fixed and usually paid out monthly.
- UNIVERSAL LIFE INSURANCE
- A form of cash value life insurance under which the premiums and amount of coverage are flexible. After the first-year premium, additional premiums and coverage can be adjusted to better meet the needs of the policy owner.
- UNIVERSAL VARIABLE LIFE INSURANCE
- A form of cash value life insurance combining the features of variable life and the flexibility of universal life. The cash values of the policy are dependent on the results of the separate account that the policy owner selected. These products can only be sold by registered representatives.
- USUAL, CUSTOMARY AND REASONABLE CHARGES (UCR)
- A provision in many health insurance policies that limit reimbursements by the insurance company. These are the charges for the same service provided by physicians located in the same area.
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