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TAKE OUT

An expression meaning to "arrange for the purchase of an insurance policy," as in "I am going to ‘take out’ a policy on my wife’s jewelry."

TARGET RISK

A large undesirable risk which is continually offered to many agents who attempt to place it with their companies because of its size. Strangely enough, the same term is used to describe a large account or prospect which is sought after by many competing agents.

TARIFF

1.) A rate promulgated by a rating organization having jurisdiction.

2.) The rules and schedules of credits and surcharges used to arrive at a given rate.

TARIFF CARDS

See Rate Cards.

TELECOMMUNICATIONS

A system which makes possible the exchange of information (data) between terminals and computers. The transmission is by telephone line or microwave via satellite. Telecommunications requires that the data stored in the computer as magnetic (computer) codes on tapes or disk be converted into sound codes for transmission by phone lines. On the receiving end, this process must be reversed: the telephone (sound) code must be reconverted into computer code so as to be understood by the receiving unit. The data may be transmitted in either direction, from computer to terminal or from terminal to computer. The conversion from computer code to sound code (or the reverse) is accomplished by a device called a "modem" (modulator-demodulator) which is capable of encoding or decoding, depending on the direction of data flow. Two modem units are required, one at each end, one to convert computer code to sound code for transmission; the other to "decode" from sound code to computer code to be understood at the receiving end.

TENANTS POLICY

A form of Homeowners policy covering the interest of a tenant with regard to protection of his property and his liability. Also refers to an owner of a co-op apartment arrangement. (See Homeowners Policy)

TERM

See Policy Period.

TERM POLICY

A policy written for a term of more than one year. (Not to be confused with "Term Policy" as used in Life Insurance.)

TERM RATES

Rates for a policy which has a term of more than one year. In certain classes a discount is allowed. For example, a three year policy in some cases can be written at 2.7 times the annual rate. The trend of late has been toward "Annualization." See discussion under Deferred Premium Payment.

TERMINAL

See Display Terminal.

THEFT

The wrongful appropriation of another’s property; the felonious removal of another’s property from premises without leaving visible signs of forcible entry or exit; any act of stealing. (See Burglar,’, Robber,’.)

THIRD PARTY CLAIM

See Claim.

THIRD PARTY INSURANCE

This is another term meaning "Liability" or "Casualty" insurance which provides that the insurer reimburse a third party for injuries or damages caused by the action or omission of the insured. (Compare Property Insurance.)

THRESHOLD

See No-Fault Insurance.

TIME ELEMENT

Term used to describe insurance which indemnifies the insured for an occurrence which results in loss of use of property. It is not to be confused with "Property Insurance" which is measured in terms of the actual damage to physical property. The amount of loss under time element forms is measured in terms of time lost, hence the name. Business Interruption, Extra Expense, Tuition Fees, Rents and Rental Value, Additional Living Expenses and Leasehold Interest are examples of "Time Element" forms.TIME SHARING

The operator of a computer system may "rent" out its processing capacity to other businesses on the basis of time used. The developer of (see) Telecommunications, makes possible access to the main computer by remote terminals via telephone lines. The practice is known as "Time Sharing," and enables smaller companies to utilize computer services while paying only for the services they need.

TITLE INSURANCE

A form of insurance which will indemnify the owner of real property in the event that prior legal faults are discovered which may affect the owner’s clear and valid title to the property.

TORNADO

A type of windstorm, funnel-shaped and of extreme violence, characterized by a very rapid drop in barometric pressure. The resulting relatively high pressure within buildings can cause them to appear to explode. Winds have been of so high a velocity that they have exceeded the capacity of the measuring devices. Tornadoes are included in the general category of "Windstorm" for insurance purposes, as are Cyclones. (See Windstorms.)

TORT

Any violation of another person’s rights; a wrong (the result of commission or omission) caused another person which is unintentional. An intentional wrong is not generally considered a tort, but rather a crime against the state, punishable by a fine and/or imprisonment. A tort, on the other hand, is ordinarily the result of negligence, and is subject to civil (as opposed to criminal) action, resulting, if proven, in judgement for damages payable to the aggrieved party. (See Negligence.)

TORTFEASOR

Wrongdoer; guilty party; one guilty of a tort (e.g. a trespasser, one who causes an automobile accident).

TOTAL LOSS

Total loss of or damage to the entire value of the property insured, real or personal; loss or damage requiring payment by the company of the full (see) face amount of the policy; loss or damage to be such that the cost to replace or repair exceeds the actual cash value or the agreed amount less slavage. (NOTE: The latter is called (see) Constructive Total Loss.)

TOURIST FLOATER

See Personal Effects Floater.

TOWING AND LABOR COSTS

An optional coverage available for Private Passenger automobiles only which pays for labor (at the site of the disablement) and towing of usually up to $25 per disablement. Premium charge is usually nominal.

TOWN GRADES

A system of grading cities and towns according to their ability to handle fires based on the availability of fire hydrants, personnel, equipment, water supply, communications and fire safety control. The grading determines the minimum fire rates of the municipality, and is a reflection on how close it measures up to the ideal standards as put forth by the (see) Insurance Services Office.

TRADE NAME

An individual or partnership may for business reasons adopt and use a name, not his or theirs, such as "Jay’s Dry Cleaning Service," which in reality is John O’Dwyer doing business as (DBA) "Jay’s Dry Cleaning Service." The trade name should be filed with the county. clerk’s office so as to (theoretically at least) let the world know that "Jay’s Dry Cleaning Service" is in reality John O’Dwyer. In the case of an individual, he is referred to as a "Sole Proprietorship" whether or not he uses a trade name. (See Sole Proprietorship.)

TRANSMITTAL, LETTER OF

See Letter of Transmittal.

TREATY

An agreement (contract) between an insurance and a reinsurance company. (See Reinsurance.)

TRESPASSER

One on premises without legal right (compare "Invitee" and "Licensee"). Premises-holder (owner, lessee) is free of negligence unless he is found to deliberately have allowed or constructed dangerous physical conditions (guard dogs, ditches, electrical fences--all without prominent warning signs or other indications) for the purposes of causing injury to trespassers.

TRIP (TRANSIT) INSURANCE

Insurance covering single shipments of various classes of personal property, merchandise, furniture, livestock, etc., for individuals or for firms which do not make regular shipments. Coverage of property in transit may be extended to cover for temporary storage and for theft. Premium depends on mode of transportation, distance and extent of carrier’s liability.

TUITION FEES

A "Time Element" coverage designed to protect schools which charge tuition, and who stand to lose if the physical plant is damaged, preventing the carrying on of normal educational activities. Since ordinary Business Interruption protection ceases to pay upon restoration of the property (which, in the case of schools, may be in mid-term), the school suffers for the balance of the term in loss of tuition fees. Additional interruption income (from athletic events, entertainment, con-sulting service, etc.) may also be covered. Policy may also be extended to cover seasonal camps (excluding hotels).

TWISTING

The illegal inducing of a policyholder to cancel an insurance policy by making incomplete or misleading comparisons and replacing it with another. This practice is against state insurance laws, and violation is generally classified as a misdemeanor. Life, accident and health fields hold more temptations for twisting than do others.

TWO OR MORE AUTOMOBILES DISCOUNT

See Multi-Car Discount.

TWO-PLATE (RIDER) AGREEMENT

An agreement by endorsement between the insured and the company in a Comprehensive Glass Polciy, that in the case of breakage of a single plate with a total area of 100 or more square feet, the insured agrees that it may be replaced by tow plates of the same total area. The company assumes all costs for any alterations necessary to make the replacement. The insured is allowed a discounted premium when he agrees to this endorsement. (See Comprehensive Glass Policy.)