Glossary
of Insurance Terms
WAIVER
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The surrender
of a right or privilege. In life insurance, a provision that sets
certain conditions, such as disablement, which allow coverage
to remain in force without payment of premiums.
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WAR RISK
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Special coverage on cargo in overseas ships
against the risk of being confiscated by a government in wartime.
It is excluded from standard ocean marine insurance and can be
purchased separately. It often excludes cargo awaiting shipment
on a wharf or on ships after 15 days of arrival in port.
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WATER-DAMAGE INSURANCE COVERAGE
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Protection provided in most homeowners insurance
policies against sudden and accidental water damage, from burst
pipes for example. Does not cover damage from problems resulting
from a lack of proper maintenance such as dripping air conditioners.
Water damage from floods is covered under separate flood insurance
policies issued by the federal government.
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WEATHER DERIVATIVE
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An insurance
or securities product used as a hedge by energy-related businesses
and others whose sales tend to fluctuate depending on the weather.
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WEATHER INSURANCE
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A type of
business interruption insurance that compensates for financial
losses caused by adverse weather conditions, such as constant
rain on the day scheduled for a major outdoor concert.
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WHOLE LIFE INSURANCE
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The oldest
kind of cash value life insurance that combines protection against
premature death with a savings account. Premiums are fixed and
guaranteed and remain level throughout the policy’s lifetime.
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WORKERS COMPENSATION
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Insurance that pays for medical care and physical
rehabilitation of injured workers and helps to replace lost wages
while they are unable to work. State laws, which vary significantly,
govern the amount of benefits paid and other compensation provisions.
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WRAP-UP INSURANCE
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Broad policy
coordinated to cover liability exposures for a large group of
businesses that have something in common. Might be used to insure
all businesses working on a large construction project, such as
an apartment complex.
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WRITE
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To insure,
underwrite, or accept an application for insurance.
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WRITTEN PREMIUMS
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See
Premiums written
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