Keller-Lowry Insurance, Inc. -- Denver, Colorado Insurance Agency: Insurance Glossary

- A - Insurance Glossary

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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.
Absolute Liability:
The liability for damages even though fault / negligence cannot be proven.
Accident:
Any sudden event which is unintended.
Accident Insurance:
Insurance coverage against loss by accidental bodily injury.
Accidental Bodily Injury:
Injury to a person from the result of an accident.
Accidental Death Benefit:
An additional paid death benefit in addition to the face amount value of a life insurance policy. 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.
Accumulation Period:
A specific time period that the insured must establish before benefits begin or are paid out.
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.
Actual Cash Value (ACV):
The cost to replace an item or property at the time of loss, less any allowance for depreciation.
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.
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.
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.
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.
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.
Adjusted Gross Estate:
Approximate net worth of a deceased, known as the beginning point for the computation of estate taxes.
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.
Adjusting:
The investigation process of settling claims by an insurance company.
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.
Advance Funding:
Pension funding method in which an employer sets aside funds prior to the employee's retirement.
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.
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.
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.
Aggregate Indemnity:
A maximum dollar amount that can be collected for any disability or period of disability under an insurance policy .
Alien Insurer:
An insurance company domiciled in another country.
Allocated Benefits:
Benefits for which the maximum amount payable for specific services is itemized in your insurance contract.
All-Risk Policies:
Coverage through an insurance contract that promises to cover all losses except those losses specifically excluded in your policy.
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.
Ambulatory Care:
These are medical services that are provided as an outpatient (nonhospitalized). Services could include diagnosis, treatment, and rehabilitation.
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.
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.
Annuitant:
The person that will receive annuity benefits for a period of time.
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.
Annuity Certain:
A contract that provides an income for a specified number of years, regardless whether living or deceased.
Annuity Consideration:
A payment, or one of the regular periodic payments, an annuitant makes for their annuity.
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.
Arson:
The willful and malicious act of burning, or attempt to burn, any structure or property, usually with with criminal or fraudulent intent.
Assets:
Any funds, goods , property, rights of actions, securities, or resources of any kind owned by an insurance company.
Assignment:
A legal transfer of one person's interest in an insurance policy to another person.
Association Captive:
A type of captive insurer owned by the members of a sponsoring organization or group, such as a trade association.
Association Group:
A group formed from members of a trade or a professional association for group insurance under one master health insurance contract.
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 group health insurance policy or by individual franchise policy through this plan.
Assumptions:
The many conditions and rules underlying the calculation of a pension benefit.
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.
Automatic Premium Loan:
The cash borrowed from a life insurance policy's cash value (to pay an overdue premium).
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.
Automobile Physical Damage Insurance:
Coverage to pay for damage to, or loss, of an insured automobile resulting from covered perils.
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.
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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Insurance Glossary is Copyrighted By Richard H. Reynolds.
Keller-Lowry Insurance, Inc. Uses This Glossary By Permission.