Glossary

The wholesale agent serves as an intermediary between the retail agent and the insurer. A wholesale agent deals with retail agents and not directly with individual insureds.

A wholesale broker is a type of insurance broker who acts as an intermediary between a retail broker and an insurer but has no contact with the insured. Wholesale agents place business brought to them by retail agents. Wholesale brokers have direct contact with the insurer, whereas the retail agent who produced the business does not. The same broker can function as a retailer or wholesaler, depending on the specific situation. Wholesale brokers often possess specialized expertise in a particular line of coverage or in a line of coverage that is unusual and/or have greater access to or influence with certain insurance markets, which is especially valuable when dealing with a difficult-to-place risk. There are two types of wholesale brokers: managing general agents and surplus lines brokers. The latter work with the retail agent and the insurer to obtain coverage for the insured; but unlike a managing general agent, a surplus lines broker does not have binding authority from the insurer.

Wholesale health insurance, also called "franchise insurance," is essentially individual health insurance provided to groups of people in the same occupation or profession or to groups too small to qualify for true group insurance—for example, fewer than 10 employees.

Whole life insurance refers to permanent life insurance that provides for the payment of the face value upon death of the insured, regardless of when it may occur. This contrasts with term insurance, which pays benefits only if death takes place during the limited term of the policy. Under whole life policies, the insured pays a level premium rate all of their life. This approach results in an overpayment of premiums in the early years of the policy and an underpayment in the latter years, which averages out over the life of the policy. Whole life insurance also accumulates a cash value that the insured may borrow or otherwise use.

A window plan is an early retirement plan in which an employer promises enriched pension benefits or credits workers for additional years of service if they retire early. Typically, early retirement windows are offered to employees for 60 or 90 days, and they give employers a humane approach to reducing their workforces without laying off employees.

A wind or hail deductible is a separate, higher deductible provision that applies to loss caused by wind or hail. Often, the deductible is expressed as a percentage of the value of the property or, in a homeowners policy, as a percentage of the dwelling limit, rather than as a flat dollar amount. In some Atlantic and Gulf Coast states, insurers have filed a variation of this deductible that applies an even higher percentage deductible in the event of loss from a "named storm," such as a hurricane.

Without prejudice is an offer or a dismissal that is meant as a declaration that no rights of the party concerned are to be considered waived or lost. A dismissal without prejudice allows a new suit to be brought on the same cause of action.

With average is an ocean marine policy provision that covers partial loss of below deck cargo on the same basis as a total loss—that is, for loss by the same perils and regardless of what percentage of the total insured value is damaged or lost.

With average 3 percent is an ocean marine policy provision that eliminates coverage for partial loss of below deck cargo amounting to less than 3 percent of insured value. Partial losses amounting to 3 percent or more of insured value are covered in full.

With particular average in ocean marine insurance refers to an insurance policy that covers a partial loss sustained by a specified cargo or vessel. Ocean marine policies do not necessarily cover partial loss (referred to as "average" loss); those that are covered must be the result of a covered peril. Such cargo losses are usually subject to separate particular average coverage provisions.