Glossary

Trust department errors and omissions coverage is coverage for the liability of bank trust department personnel arising out of their acts as trustees.

In captive parlance, a trust fund is an onshore guarantee fund using assets of the captive. Another use of the term "trust fund" is a formalized self-insurance vehicle that operates pursuant to its governing trust document.

In the construction industry, turnkey operation refers to the practice by contractors of building on speculation and then selling the completed project to a buyer.

Twisting describes the act of inducing or attempting to induce a policy owner to drop an existing life insurance policy and to take another policy that is substantially the same kind by using misrepresentations or incomplete comparisons of the advantages and disadvantages of the two policies.

Two-factor authentication involves the use of multiple, distinct layers of security protecting a device or network.

A third-party litigation financing (TPLF) arrangement is a financial arrangement in which an outside party—unrelated to the lawsuit—provides funding to a plaintiff or law firm (typically on a nonrecourse basis) to cover litigation-related costs in exchange for receiving a future portion of any financial recovery from that case or group of cases.

Third-party litigation funding is a type of financing for litigation—a nonrecourse loan that limits the lender's recovery to the collateral alone. In exchange for an agreed share of the proceeds of a successful claim, a third-party litigation funder will normally fund some or all of the legal costs and disbursements to take the claim to trial. If the claim is not successful, the funder loses its investment.

One of the three theories typically used to determine the number of "occurrences" under an occurrence-based liability policy that looks to the triggering event that caused liability. Under this theory, the specific event that triggers the liability is considered the occurrence, such as an individual claimant's exposure to a hazardous substance. This test often results in multiple occurrences, as a scenario where multiple people are exposed to asbestos will lead to multiple occurrences. The other two tests typically used to determine the number of occurrences are the cause and the effect theories.