total cash flow ratio: The sum of premiums collected net of reinsurance plus other underwriting income plus investment income net of investment expense plus other income divided by the sum of loss and loss adjustment expense paid plus underwriting expenses paid plus other expenses plus dividends to policyholders paid.
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total capital: The sum of borrowed money plus statutory surplus.
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total assets: Total general account admitted assets (excluding separate accounts).
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tort reform: An effort by state lawmakers to change court procedures in order to reduce the expense and delays in settling auto insurance claims. Reform also involves reducing the amount of damages some defendants are forced to pay.
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title insurance: Title insurance protects against the various financial losses associated with having the title on your home challenged, including court costs and loss of the property. For a one-time fee, most title insurers will investigate public records to make sure that your property is free of title defects. This coverage can benefit either the homeowner or the mortgage company, so you should know which kind youÆre paying for.
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time limit: A specified number of days in which a notice of claim or proof of a loss must be filed.
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third-party administration (TPA): An outside person or firm (not a party to a contract) that maintains all records of persons covered under an insurance plan. The TPA also may pay claims using the draft book system.
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term rider: Term insurance that is added to a whole life policy at the time of purchase or that may be added in the future.
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term insurance: A plan of insurance that covers the insured for only a certain period of time (term), not for his or her entire life. The policy pays death benefits only if the insured dies during the term.
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tax treatment of life insurance payments: The death benefits of a life insurance policy are exempt from taxes. Even with recent tax-rate reductions and a phased-in increase in the amount of a personÆs estate that is exempt from estate taxes, the tax-free nature of life insurance benefits makes them a powerful financial planning and wealth-preservation tool. Annuity payments are not tax exempt, although these products may include insurance “wrappers” with exempt benefits.
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