Glossary

The "10/10 rule" is a general guideline for determining whether risk transfer, an important requirement for using reinsurance accounting, occurs with a reinsurance agreement.

Terminal Coverage (IH 00 72) covers damage to vehicles garaged or stored at a common location sometimes included in a property insurance policy or inland marine floater.

A terminal dividend is an additional dividend that is paid to the policyholder when a life insurance policy is terminated.

A terminal operator is the term used to describe the operator of a commercial wharf when the wharf is located in a larger terminal facility that is under common management.

A terminal reserve is a life insurance reserve that is established at the end of each life policy year.

Termination is the formal ending of a reinsurance agreement by its natural expiration, cancellation, or commutation by the parties.

Term life insurance refers to a policy that gives protection for only a definite period of time (e.g., 1, 3, or 5 years).

Terrorism is the use of violence to produce terror for political or ideological purposes.

A terrorism endorsement is a provision attached to an insurance policy that restricts, excludes, or otherwise explains coverage for loss due to terrorist acts.

Terrorism insurance covers loss due to acts of terrorism.