General

TDB.
See Temporary Disability Benefits.

Tabular.
Of or pertaining to a table. Tabular cost is the cost of mortality, morbidity, or other claims, according to the valuation tables and assumptions used by the insurer.

Tabular Plan.
A retrospective rating plan, which uses tables to furnish the various values for the rating formula.

Target Risk.
(1) Certain high-value bridges, tunnels, and fine art collections that are excluded from an automatic reinsurance contract to permit specific handling of the capacity problem and to release the reinsurer from the potential heavy accumulation of liability on any one risk. (2) A large, hazardous risk on which insurance is difficult to place. (3) A large, attractive risk that is considered a target for competing insurance companies.

Tariff Rate.
A rate established by a rating organization, which comes from the tables, schedules and rules found in the tariff of rates.

Temporary Agent.
A person who is licensed to act as an agent for a brief period of time (usually 90 days) without taking a written examination. Temporary licenses are commonly granted to allow someone to continue the business of an agent who has died, become disabled, or entered active military service.

Term.
The period of time for which a policy or bond is issued.

Term Rule.
The provision in a rating manual which states the periods for which coverages run, and discounts, if any, which apply to the rates or premiums of policies issued for more than one year.

Termination.
The time the coverage under an insurance policy ends, either because its term has expired or because it has been cancelled by either party.

Territorial Limitation.
See Geographical Limitation.

Theory of Probability.
The mathematical principle upon which insurance is based. See also Degree of Risk, Law or Large Numbers, Odds, and Probability.

Third Party Beneficiary.
A person who is not a party to a contract but who has legally enforceable rights under the contract. It might be a Life Insurance beneficiary, or a mortgagee.

Tickler.
A reminder system used to call an individual's attention to actions that must be taken at a future point in time.

Time Limits.
The limits of time within which notice of a claim and proof of a loss must be submitted.

Title Insurance.
Insurance which indemnifies the owner of real estate in the event that his clear ownership of property is challenged by the discovery of faults in the title that was passed to him.

Total Loss.
A loss of sufficient size so that it can be said there is nothing left of value. The complete destruction of the property. The term is also used to mean a loss requiring the maximum amount a policy will pay.

Transacting Insurance.
The solicitation, inducement, and preliminary negotiations effecting a contract of insurance and the subsequent carrying on of business pertaining to it. The exact definition will vary somewhat according to the state laws regulating insurance.

Transfer of Risk.
Shifting all or part of a risk to another party. Insurance is the most common method of risk transfer, but other devices, such as hold harmless agreements, also transfer risk. One of the four major risk management techniques. See Risk Management.

Traumatic Injury.
An injury to a person's physical body caused by an outside source, as distinct from physical disability caused by sickness or disease.

Trustee.
A person appointed to manage the property of another.