Insurance Definitions

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WAITING PERIOD:   A period of time between the beginning of a disability and the date benefits begin.

WAIVE:  To forego; to refrain from insisting upon application of an insurance deductible under specific conditions.

WAIVER CLAUSE:   A clause which entitles both Underwriter and Assured to take measures to prevent or reduce loss without prejudice to the rights of either party.

WARRANTY:   A statement made on an application for insurance that is warranted to be true in all respects. If untrue in any respect, even though the untruth may not have been known to the person giving the warranty, the contract may be voided whether or not the untruth or inexactness is material to the risk.

WATERBORNE AGREEMENT:   A market understanding whereby Underwriters cover goods against war risks only whilst they are on the overseas vessel. This rule is relaxed only in the case of goods in a transshipping port for a short period awaiting onward carriage.

WHOLE LIFE INSURANCE:  Life insurance payable to a beneficiary at the time of death of the insured, whenever that occurs.

WITHOUT BENEFIT OF SALVAGE:   A term in a marine insurance policy, whereby the Underwriters forgo their subrogation rights. A policy incorporating such a term is deemed to be a gambling policy in law, and is therefore invalid in a court of law.

WITHOUT PREJUDICE:   The claim is paid on this occasion, although the Underwriter feels it does not attach to the policy, but this action must not be treated as a precedent for future similar claims.

WORKERS COMPENSATION:   (1) A schedule of benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational hazard. The payments are a liability of an employer. (2) Insurance agreeing to pay the Workers Compensation benefits required by law on behalf of the employer.

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