Glossary

Underwriting profit is the net profit that an insurer derives from providing insurance or reinsurance coverage, exclusive of the income it derives from investments.

Underwriting risk is the loss borne by insurers and reinsurers.

Underwriting year experience refers to underwriting based on written premiums and ultimate losses from loss events falling within the same accounting period, where the accounting period is the period covered by the insurance policy or reinsurance agreement, regardless of when the premiums and losses were actually reported, booked, or paid.

Undue familiarity refers to the legal doctrine stating that physicians have a duty not to become physically intimate with their patients.

Undue hardship is a term contained in the Americans with Disabilities Act of 1990 relating to the degree of accommodation an employer must make for a qualified, disabled employee.

Unearned premium (UEP or UP) is the portion of the policy premium that has not yet been "earned" by the company because the policy still has some time to run before expiration.

Unearned premium reserve (UEPR or UPR) represents the amount of unexpired premiums on policies or contracts as of a certain date (the total annual premium less the amount earned).

Unearned reinsurance premium represents the portion of a reinsurer's premium that applies to the unexpired portion of the policies it has reinsured.

An unfunded retention is a type of retention plan under which losses are paid out of cash flow or from funds obtained by borrowing.

Unfunded self-insurance refers to a system in which a company creates a "paper" reserve figure.