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.

An unoccupied building is occurs when people are absent. Two similar terms—vacant and unoccupied—have specific meanings in the language of insurance and are specifically defined in some policies. Many property provisions contain a vacancy provision. A vacant building contains little or no furniture or other personal property. Even if it is not vacant, a building can be unoccupied. The wording in many property insurance policies limits, reduces, or entirely eliminates coverage when a building has been vacant (or, in some forms, vacant or unoccupied) for a designated period of time, such as 45 or 60 days.

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.

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. It could be paid by a tax-exempt entity as a result of receiving income earned by a profit-making entity, also called "unrelated business taxable income (UBTI)."

Unseaworthiness is a concept based on general maritime law that warrants that the vessel is reasonably fit for the intended use at sea. Note that the warranty of fitness may extend beyond defective equipment to include such things as lack of proper lifesaving equipment, absence of bathroom facilities, inadequate lighting, a vicious crew, improper stowage, unsafe means of boarding and departing a vessel, and unsafe or improper tools. When the warranty is breached and the ship is shown to be unseaworthy, a no-fault liability is imposed on the shipowner or charterer to make restitution for the injury or death of the individual.

Unusual expenses in life insurance are nonroutine expenses of the cedent for claims investigation, legal defense, or rescission actions. The reinsurer typically agrees to pay such expenses as distinct from punitive, exemplary, or other noncontractual expenses that it does not agree to pay.

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. Some insurers will remove the exclusion of loss caused by the weight of a load exceeding the equipment's specified capacity with respect to some or all equipment.

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

Use and occupancy (U&O) insurance is an obsolete boiler and machinery (BM) insurance term for BM business interruption coverage.