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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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