This glossary is courtesy of the "Field Guide for Property & Casualty Agents and Practitioners" published annually by The National Underwriter Company.

GLOSSARY OF INSURANCE TERMS & CONCEPTS

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T

TPA - Third party administrator. A TPA is a contractor that adjusts and ad-ministers insurance claims.

Tail coverage - Coverage for claims made after a claims-made liability policy has terminated; the extended reporting or discovery period. See Nose coverage.

Temporary worker - An employee hired on a short term, often seasonal, basis.

Tenants improvements and betterments, see Improvements and betterments.

Third party - An outsider; a business or personal invitee or a party with absolutely no connection to an insured who may become a claimant under a form of public liability coverage because of injury or property damage alleged to have been caused by the negligence of the insured.

Threshold level - The point at which an injured person may bring tort action under a modified No-Fault Auto Plan. Many no-fault plans only allow tort action for pain and suffering after medical bills exceed some figure, like $1,000; or if disfigurement or death occurs.

Tight market, see Hard market.

Time element coverage - Insurance in which the element of time has heavy bearing on the extent of loss. Business income insurance covers loss of income for the unknown duration of the insured’s business interruption.

Title insurance - Insurance that indemnifies the owner of real estate in the event that someone challanges his or her ownership of property, due to the discovery faults in the title.

Tort - A wrong for which a civil (as opposed to criminal) action can be brought. Many tort claims arise from negligence.

Trailer interchange agreement - An arrangement among truckers whereby trailers may be moved along by the tractors of one or more parties to the agreement.

Transfer of risk - A basic underlying principle of insurance, whereby the risk of financial loss is transferred from one party to another.

Treaty reinsurance - An agreement in which the ceding company agrees in advance to cede certain classes of business or types of insurance to a reinsurance company. The reinsurer agrees to accept all risks or losses that fall within the terms of the agreement.

Twisting - The practice of inducing by misrepresentation, or inaccurate or in-complete comparison, a policyholder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.