Insurance Glossary

TERM CERTAIN ANNUITY

An annuity contract that pays income for a fixed, specified period of time, regardless of whether the annuitant is living.

TERM INSURANCE

A form of life insurance that provides coverage for a specified period of time. Benefits are paid only if the insured dies during the policy term. Policies are typically renewable, with premiums increasing as the insured ages.

TERRITORIAL RATING

A rating method that classifies insurance risks based on geographic location, reflecting differences in loss frequency and severity across areas.

TERRORISM COVERAGE

Insurance coverage for losses resulting from acts of terrorism. Once included at minimal cost in commercial policies, pricing and availability changed significantly after September 11, 2001.

THIRD-PARTY ADMINISTRATOR (TPA)

An external organization that performs administrative and clerical functions for insurance companies, such as claims processing and recordkeeping.

THIRD-PARTY COVERAGE

Liability insurance that protects the policyholder against claims or lawsuits brought by parties other than the insured or the insurer.

TIME DEPOSIT

Funds deposited for a fixed period at a specified interest rate, with penalties or restrictions applied to early withdrawals.

TITLE INSURANCE

Insurance that protects real estate owners or lenders against financial loss due to defects, liens, or disputes affecting property title.

TORT

A civil wrong, other than breach of contract, that results in injury or damage and may give rise to a lawsuit.

TORT LAW

The body of law governing civil wrongs such as negligence and intentional harm, excluding contractual disputes.

TORT REFORM

Legislative efforts aimed at reducing liability costs by modifying legal rules and limiting certain types of damages.

TOTAL LOSS

A situation in which property damage is so severe that the cost of repair exceeds the property’s value.

TRANSPARENCY

The practice of providing clear, accurate, and accessible information about financial activities, company actions, and market conditions.

TRAVEL INSURANCE

Insurance coverage that protects against travel-related risks such as trip cancellation, medical emergencies, and lost luggage.

TREASURY SECURITIES

Debt obligations issued by the U.S. Treasury, including bills, notes, and bonds, used to finance government operations.

TREATY REINSURANCE

A reinsurance agreement in which a reinsurer automatically accepts a defined share of an insurer’s policies within specified categories.