Glossary

Third-party risk is the risk of losses to third parties, usually insured under casualty or liability insurance.

A third country national is a worker hired in a country outside the United States who is assigned to work in a country other than their country of origin. An example is a French citizen who is assigned to work in the United Kingdom. If the insured corporation employs TCNs or maintains a physical location in another country, the insured will need a foreign voluntary workers compensation (FVWC) policy. FVWC coverage is sometimes referred to as employers responsibility coverage.

A third party in an insurance context is someone other than the insured and the insurer or the plaintiff and the defendant. In liability insurance, the insurer provides defense against claims or suits brought by third parties—hence the term "third-party insurance."

Threshold refers to the lowest dose of a chemical at which a specified measurable effect is observed and below which it is not observed.

Threshold level refers to time-weighted average pollutant concentration values, exposure beyond which is likely to affect human health adversely.

Threshold limit value is the concentration of an airborne substance to which an average person can be repeatedly exposed without adverse effects.

Tie-in endorsements are endorsements sometimes added to a directors and officers (D&O) liability insurance policy form. Tie-in endorsements state that if an insured's D&O and fiduciary liability policies are written by the same insurer, only one policy limit applies (or the higher of the two limits applies if the limits are different) when a claim arises from essentially the same set of acts or facts. Tie-in endorsements first appeared after Enron's 401(k) plan holders filed lawsuits, alleging almost the identical wrongful acts that were stated in shareholder class action suits against Enron and its directors and officers.

Time element insurance is a property insurance term referring to coverage for loss resulting from the inability to put damaged property to its normal use. This type of coverage is called "time element" insurance because the amount of loss depends on how long it takes to repair or replace the damaged property. The best-known types of time element insurance are business interruption and extra expense coverage.

Time element loss results from an inability to use a property. Examples include business interruption, extra expense, rental income, etc.

Time series analysis is an arithmetic trending technique that assumes that the variable to be forecast (known as the dependent variable) varies predictably with time (the independent variable). This type of analysis is comparable to regression analysis; however, time series analysis assumes that the dependent variable (such as the annual number of losses) varies only with the passage of time. Given any future time period, the trend line can be extended to develop estimates of loss frequency and loss severity for various kinds of exposures.