- Abandonment Clause: A clause
often contained in a property insurance policy stating that
the insured cannot abandon damaged property and then file
a claim with an insurer.
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- Absolute Liability: The liability
for damages even though fault / negligence cannot be proven.
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- Accident: Any sudden event which
is unintended.
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- Accident Insurance: Insurance
coverage against loss by accidental bodily injury.
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- Accidental Bodily Injury: Injury
to a person from the result of an accident.
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- Accidental Death Benefit: An
additional paid death benefit in addition to the face amount
value of a life insurance policy.
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- Accounts Receivable Coverage Form:
An inland marine coverage form that insures against loss
the insured suffers when not able to collect account receivables
from customers.
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- Accumulation Period: A specific
time period that the insured must establish before benefits
begin or are paid out.
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- Activities of Daily Living:
Activities that are considered an everyday part of normal
life. Some of these are: dressing, bathing, toileting, transferring
(example: moving from and into a chair), and eating. These
activities are used to measure the degree of impairment
and can effect the eligibility for certain types of insurance
benefits.
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- Actual Cash Value (ACV): The
cost to replace an item or property at the time of loss,
less any allowance for depreciation.
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- Actuarial Cost Method: A method
used for determining contributions to be made under a retirement
plan. Usually applied to the level of benefits when the
contributions are fixed.
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- Actuary: A professional in the
insurance business, usually working for the insurance company,
that can estimate how a certain sum of money can be contributed
to a pension plan, insurance, or other related area to fund
that plan for years to come.
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- Additional insured: An individual
or entity that is not included as an insured under the insurance
policy of another, but may be added to provide a certain
degree of insurance protection.
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- Adhesion (Contract of): Parties
are of unequal bargaining power, and one party (the insured)
cannot negotiate any terms, having to accept the offer of
the other party.
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- Adjustable Life Insurance: A
type of life insurance that allows the owner of a policy
to change the plan of insurance, raise or lower the face
amount, increase or decrease the premium, and lengthen or
shorten the protection period.
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- Adjusted Gross Estate: Approximate
net worth of a deceased, known as the beginning point for
the computation of estate taxes.
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- Adjuster: A person who investigates
and settles losses for an insurance company, or may be hired
independently to resolve any issues (leverage) between the
insurance company adjuster and the insured.
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- Adjusting: The investigation
process of settling claims by an insurance company.
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- Administrative Services Only (AS0)
Plan: An arrangement under which an insurance company
or an independent agent will, for a fee, handle the administration
of claims, benefits and other administrative functions for
a self-insured group. This is very popular with larger corporations.
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- Advance Funding: Pension funding
method in which an employer sets aside funds prior to the
employee's retirement.
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- Age Limits: Stipulated minimum
and maximum ages below and above which the company will
not accept applications or may not renew a policy. Read
your policy.
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- Agent: An insurance company
representative licensed by the state who solicits, markets,
negotiates, binds, and administers contracts of insurance
while providing a valuable service to a policyholder for
the insurer.
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- Aggregate Deductible: A deductible
in some property and health insurance contracts which all
covered losses during a year are figured together and an
insurer pays only when the aggregate deductible amount is
exceeded.
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- Aggregate Indemnity: A maximum
dollar amount that can be collected for any disability or
period of disability under an insurance policy.
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- Alien Insurer: An insurance
company domiciled in another country.
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- Allocated Benefits: Benefits
for which the maximum amount payable for specific services
is itemized in your insurance contract.
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- All-Risk Policies: Coverage
through an insurance contract that promises to cover all
losses except those losses specifically excluded in your
policy.
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- Alternate Delivery Systems:
This system of care is designed to provide needed services
in a cost-effective manner. This provides an insured with
health services other than an in-patient, acute-care hospital,
or other type of facility. Some examples include: skilled
and intermediary nursing facilities, hospice programs, and
home health care.
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- Ambulatory Care: These are medical
services that are provided as an outpatient (nonhospitalized).
Services could include diagnosis, treatment, and rehabilitation.
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- Amendment: A formal document
revising the provisions of an insurance policy. Usually,
signed jointly by an insurance company officer and the policy
owner or his authorized representative.
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- Annual Statement: An annual
report of an insurance company to a state insurance department,
showing financial data relating to the operation of the
insurance company.
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- Annuitant: The person that will
receive annuity benefits for a period of time.
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- Annuity: Considered to be the
opposite of life insurance where a death benefit is paid,
an annuity provides a benefit while the insured is alive.
This is a contract that provides an income for a specified
period of time.
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- Annuity Certain: A contract
that provides an income for a specified number of years,
regardless whether living or deceased.
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- Annuity Consideration: A payment,
or one of the regular periodic payments, an annuitant makes
for their annuity.
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- Application: A signed statement
of facts made by a person applying for insurance. The application
is used by the insurance company to decide whether or not
to issue a policy. The application becomes part of the insurance
contract when the policy is issued.
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- Arson: The willful and malicious
act of burning, or attempt to burn, any structure or property,
usually with with criminal or fraudulent intent.
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- Assets: Any funds, goods, property,
rights of actions, securities, or resources of any kind
owned by an insurance company.
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- Assignment: A legal transfer
of one person's interest in an insurance policy to another
person.
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- Association Captive: A type
of captive insurer owned by the members of a sponsoring
organization or group, such as a trade association.
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- Association Group: Group formed
from members of a trade or a professional association for
group insurance under one master health insurance contract.
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- Association Group Plan: A health
insurance plan designed for the members of a professional
association or trade association. A members may be protected
under a grop health insurance policy or by individual franchise
policy through this plan.
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- Assumptions: The many conditions
and rules underlying the calculation of a pension benefit.
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- Attractive Nuisance: Condition
that can attract and injure children. The occupants of land
on which such a condition exists are liable for injuries
to children. In Florida, pool owners are required to fence
the area around the pool.
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- Automatic Premium Loan: The
cash borrowed from a life insurance policy's cash value
(to pay an overdue premium).
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- Automobile Liability Insurance:
Protection for an insured against financial loss because
of legal liability act that has car related injuries to
others or damage to their property.
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- Automobile Physical Damage Insurance:
Coverage to pay for damage to, or loss, of an insured automobile
resulting from covered perils.
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- Automobile Shared Market: A
program in which all automobile insurers in each state make
coverage available to car owners who are unable to obtain
auto insurance in the voluntary market.
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- Aviation Insurance: Aircraft
insurance including coverage of aircraft or their contents.
The owner's liability, and accident insurance on the passengers
can be covered.
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Back to the Glossary
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