October 1, 2018

Glossary

Glossary

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There are 7 names in this directory beginning with the letter U.
Ultra Vires
Traditionally, the purpose of a corporation was closely spelled out in its articles of incorporation. If the corporation acted beyond its described purposes these actions were unenforceable against the corporation or by the corporation. However, most modern statutes allow corporate purposes to be any lawful activity. Therefore, the importance of this doctrine has greatly diminished.

Unanimous Written Consent
Nearly all states allow directors to act without a meeting if they each give their consent

Underwriting
The process by which an insurance company determines whether it can assume the risk of a specific life insurance policy. Alternatively, this can refer to the business of investment bankers, who purchase new issues of securities and resell them to the public.

Unemployment
The state of being "not in gainful employment," in which a person may be eligible for some state and federal benefits.

Uniform Gift to Minors Act (UGMA)
The law that allows an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. The UGMA is called the Uniform Transfer to Minors Act (UTMA) in some states.

Universal Life Insurance
A type of life insurance policy that allows the holder to vary the amount and timing of premiums and change the death benefit based on the policyholder's changing needs and circumstances. It usually includes a cash value savings feature.

Unsecured Debt
Debt that is not guaranteed by collateral.