- 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.
- 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.
- 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:
- A 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 group 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