A type of disability that can be defined differently from policy to policy. Generally, this term refers to a disability, caused either by an injury or a medical condition, which stops the insured from working in any capacity.
Tag: RAW
Total earnings scheme
Career average scheme meaning that a member’s pension is worked out as a fraction of their total earnings while being a member of the scheme.
Total Insurable Value (TIV)
The total values for insured perils and coverages for a particular risk, whether or not insurance limits have been purchased to that amount.
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US: A property insurance term referring to the sum of the full value of the insured’s covered property, business income values, and any other covered property interests.
Total insured value (TIV)
A provision in reinsurance agreements that excludes coverage of individual properties in cases where total insured values across all property lines equal or exceed a certain level, e.g., $200 million. This clause is used to prevent multiple exposures to reinsurers on large single risks.
Total Insured Value Clause
An exclusion that prevents a reinsurer’s over-lining on a single large risk (usually excess of $250 million) caused by a potential accumulation of property limits from two or more ceding companies. The customary exception to the exclusion applies to risks insured 100 percent by one insurer or specifically listed classes (such as apartments, offices, hotels, hospitals, etc.).
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.
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A term used to refer to a claim for a loss equal to the maximum benefit the policy will pay. More often, this term is used to refer to a loss in which the property is completely destroyed, to the point where nothing of value can be salvaged.
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UK: Subject-matter of insurance is lost, destroyed or damaged beyond economic repair. See actual total loss and constructive total loss.
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UK: the complete loss or destruction of all the property insured under a particular policy.
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Total loss may be either actual or constructive. There is an actual total loss when the subject-matter insured is destroyed or so damaged as to cease to be a thing of the kind insured, or when the insured is irretrievably deprived of it. total loss is complete destroying or running of the property insured. In contrast constructive total loss is substantial, but less than physically complete, damage to property such that, if the property were to be repaired, the cost of repair would exceed the value of the property after repair.
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Where the subject matter of an insurance is lost, destroyed or damaged beyond repair.
Total loss of part
Marine cargo provision whereby the loss of whole package in loading or discharge or the loss of a whole craft load shall be treated as a total loss of that part of the cargo and consequently will not be subject to a franchise.
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A Marine cargo policy may provide that a loss of a whole package in loading or discharge or the loss of a whole craft load shall be treated as a total loss of that part of the cargo and hence will not be subject to a franchise.
Total Loss of Vessel
A Marine insurance policy on disbursements and the like may provide that the insurers shall pay only if the vessel is a total loss.
Total Loss Only
A term used in Marine Hull Insurance and reinsurance limiting cover to payment for a total loss. A clause is likely to define whether the cover is to include arranged or compromised total losses and whether sue and labour charges and salvage charges are recoverable.
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UK: Marine insurances, particularly hull facultative reinsurances, are sometimes arranged on the basis that the (re)insurer is liable only in the event of a total loss. Cover may or may not include arranged or compromised total losses, sue and labour charges, and salvage charges.
total net cost (TNC) method
Insurance policy cost comparison system that adds a policy’s premiums and subtracts dividends and cash value. TNC is not allowed by the National Association of Insurance Commissioners (NAIC) Model Life Insurance Solicitation Regulation because it does not consider the time value of money.