XCU Exclusion

An exclusion often found in a Commercial General Liability policy that excludes liability for explosions, collapse, or underground hazards.

Whole Life

A Life policy that runs for the insured’s whole life — that is, until death or the ultimate age on the mortality table being used (age 100). Premiums for a Whole Life policy may be paid for the whole life or for a limited period (for example, 20-Pay-Life or LP65) during which the higher premium charged pays up the policy. Also known as “permanent” insurance.

War Clause

This generally excludes coverage for persons serving in the armed forces during the time of war, whether on the battlefield or not.


1) A rider excluding liability for a stated cause of accident or sickness. Also known as an “impairment” rider. 2) A provision or rider agreeing to waive premium payment during a period of disability. Also known as “Waiver of Premium.” 3) The giving up or surrender of a right or privilege that is known to exist. For example, the underwriter has the right to require applicants to complete all the questions on the application. If the underwriter accepts an incomplete application, they have waived the right to obtain it later. Once a right is waived, it can no longer be asserted. This is known as “Estoppel.”

Waiting Period

A period of time between the beginning of a disability and the date benefits begin. Also known as Elimination Period. The Waiting Period is like a deductible, in that the longer it is, the lower your premium.

Workers’ Compensation Insurance

Insurance that covers an employer’s obligations under Workers’ Compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness. Workers’ Compensation coverage also includes separate coverage for Employers Liability.


1) A statement that is guaranteed to be true in all respects. Statements on insurance applications are, in the absence of fraud, not warranties, but representations (statements true to the best of the applicant’s knowledge). 2) A sworn statement by the insured attesting to the presence of certain safeguards, such as a sprinkler or burglar alarm system. Breach of this type of warranty may void coverage.

Variable Annuity

An Annuity contract in which the amount of the periodic benefits varies, usually in relation to the value of securities invested in a “separate” account, which is very similar to a mutual fund. Producers selling variable annuities or variable life insurance must also pass the FINRA Series 6 or 7 exam and be registered with the Securities Exchange Commission (SEC), since securities are regulated by Federal law. Further, most states require that producers selling variable products obtain a Variable Products endorsement to their state Life insurance license.

Vicarious Liability

Imposed in some states upon a person even though he is not a party to the particular occurrence, e.g., the owner of a motor vehicle might be vicariously responsible for injuries even though he is not driving the car at the time of the occurrence.

Vandalism and Malicious Mischief (VMM)

Protects property against damage caused by vandals. May be added by Endorsement to the DP-1 Basic Form; included coverage in many other Property forms.