Insurance Terms

Unconscionable

Unscrupulous or unreasonable; in legal terms, an unconscionable contract is one found to lack meaning because the contract is one-sided and/or unfairly executed.
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Underwriting

The process an insurance company uses to evaluate the risk presented by an applicant and to calculate an appropriate life insurance premium.
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Unearned Income

Non-employment income, such as income from investments, trusts, rent, Social Security benefits, alimony payments, pensions, and annuities.
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Unified Credit

A federal tax credit allowed to each U. S. citizen or resident against tax, imposed on lifetime gifts (federal gift tax) or against tax, imposed on testamentary transfers of assets (federal estate tax).
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Uniform Gift to Minors Act (UGMA)

State laws under which gifts to minors may be made by transferring property to a custodian.
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Uninsured/Underinsured Motorist Coverage

Part of a standard auto insurance policy that provides coverage for losses you and others suffer when you're involved in an accident with a "hit-and-run" driver, or a driver without adequate insurance (or with no insurance).
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Unisex Pricing

A policy whose premium is the same for both men and women, mandated by certain states and optional in others.
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Universal Life Insurance

A form of permanent cash value life insurance that provides both life insurance protection and a savings component with a guaranteed minimum rate of return, plus an additional return when the insurance company's investments perform well. Other key features include the ability to adjust both your premium payments and the amount of your insurance coverage.
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Unlimited Marital Deduction

A federal gift and estate tax deduction allowed for transfers of property between spouses. Specifically, the marital deduction for both federal estate and gift taxes has no dollar or percentage limit as long as the donee (the spouse to whom the property is transferred) is a citizen of the U.S.
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Unsecured

A pledge or promise of payment to a creditor or obligor that is not supported by or guaranteed with collateral.
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Utilization Management

A method of managing medical care costs by controlling the fees charged by providers for various medical treatments, as well as the appropriateness of the treatment. Utilization management controls the component of appropriateness for medical care by using established criteria to review the care patients receive and make sure it is necessary and appropriate.
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