Glossary

The unnamed pilot exclusion, found in aircraft policies with a named pilot warranty, precludes coverage for any insured if the aircraft is piloted by anyone other than the pilot listed in the policy with the named insured's knowledge and consent.

A building is unoccupied when people are absent.

Unplanned retention refers to retention of losses by an organization because it fails to identify a loss exposure or fails or forgets to act on a loss exposure.

Unregulated is a term used to describe surplus lines insurers, but it is not entirely accurate. While surplus lines insurers do not adhere to the same regulations regarding forms and rate filings as licensed insurers, surplus lines insurers are licensed in the state where they are domiciled and are regulated to some degree by every state where they may operate.

Unrelated business refers to the insuring of risks not related to those of a captive's owner(s).

Unrelated business income tax (UBIT) is paid on income earned in an affiliate.

Unseaworthiness is a concept based on general maritime law that warrants that the vessel is reasonably fit for the intended use at sea.

In life insurance, unusual expenses are nonroutine expenses of the cedent for claims investigation, legal defense, or rescission actions.

Upset coverage insures for damage to a crane caused by tipping. Most contractors equipment policies are written on an all risks basis that includes coverage for upset. However, tipping caused by attempting to lift more than the crane's specified weight-bearing capacity is likely to be excluded.

Usage-based insurance is a type of auto insurance that tracks driving behavior via (a) devices installed in a vehicle or (b) a smartphone.