The risk that underwriting results will deviate adversely from the risk allowed for in assessing the premiums required to cover the pure risks accepted by the insurer. Poor underwriting decisions have an adverse impact on profitability.
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the possibility that the amount which a general insurer will have to pay to indemnify policy holders in respect of the perils covered by the insurance will exceed the amount anticipated in calculating the premiums (in life insurance this definition only applies to the mortality risk).

For accounting and classification purposes it is the treaty year in which a contract was written or renewed. Applies to proportional reinsurance. See UNDERWRITING YEAR SYSTEM.
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The calendar year during which the risk attaches on the original Insurance.
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the accounting year of an insurer or Lloyd’s syndicate to which insurance business relates, usually determined by the date of inception; reinsurance contracts may be written by reference to the insurer’s business of a particular underwriting year, and will remain in force until all the claims referable to that underwriting have been settled.

Method in proportional treaty reinsurance whereby all premiums and losses relating to an underwriting year are accounted to that year regardless of when such losses arise or when such premiums and losses are paid.

Cargo clause providing cover for losses that are not discovered until the boxes are opened after the termination of the risk. Externally the box or package appears in good condition, but contains concealed damage.

That part of the premium or reinsurance premium applicable to the unexpired portion of the policy. The unearned premium reserve is the accounting provision at a specific time that reflects the total amount of unearned premiums. The effect is to write down current profits by the reserve and carry it forward as income in the next financial year.

an amount representing a pro rata spread of premiums (sometimes less acquisition costs) carried forward from one accounting period to the next in recognition of the unexpired period of contracts remaining at the balance sheet date.

A contract defective only in the sense that it cannot be enforced by direct legal action. The contract is otherwise valid and subsisting, so a transferee of property gains a good title and any deposit paid may be retained. A contract of fidelity guarantee not in writing would be unenforceable (the Statute of Frauds).
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This is one, which lacks some evidential features. The contract is a valid one otherwise, but could not be enforced in a court of law.

Provision to safeguard the insurer against any deficiency in the unearned premium reserve. The risk reserve also allows for possible claims under contingency policies that run in perpetuity and do not lend themselves to annual apportionment.

(1) a provision for claims expected to arise in respect of the unexpired period of contracts in existence at the balance sheet date; (2) the excess of the amount of unexpired risks over the unearned premiums.