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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Accidental Bodily Injury:
Insured's bodily injury or death is due
to an unforseen accident independent of
any natural causes.
Accidental Death and Dismemberment (AD&D):
This type of insurance pays a benefit to
the insured or the insured's beneficiary
in the event of bodily injury or death by
accidental means (See also Accidental bodily
injury). Accident insurance can take the
form of an individual policy or an AD&D
rider on an insurance policy to supplement
the death benefit amount when the insured
loses any two limbs or eyesight in both
eyes.
Accidental Death Rider:
A rider added to a life insurance policy
that pays a benefit to the beneficiary in
addition to the face amount of the policy
when the insured's death is the result of
an accident (See also Accidental death and
dismemberment). Sometimes referred to as
Double or Triple Indemnity
where two or three times the death benefit
amount is paid to the beneficiary when certain
age and time restrictions are met.
Accidental Means:
An uncontrollable, unforeseen event that
occurs which results in accidental bodily
injury (See also Accidental Bodily Injury).
The mishap itself would have to be accidental
in addition to the injury.
Act
of God:
Certain acts of nature such as earthquakes,
floods, or hurricanes, that are beyond human
control.
Actuarial:
Deals with the mathematics and probabilities
of insurance. Ensures evaluation of risk,
adequate premium payment and other statistical
studies for all type of risks that are underwritten.
Adhesion, Contracts of:
A one-sided, legally binding agreement prepared
by one party and wholly accepted or rejected
by another party. An insurance policy is
a unilateral, take it or leave it contract
because the insurer sets the terms of the
policy. All insurance contracts are considered
to be contracts of adhesion.
Age
Basis (Age Change):
An applicant's insurance age is determined
one of two ways, depending on the insurance
carrier: (1)Age Nearest: six months before
applicant's birthday, their insurance age
changes; (2)Actual Age:applicant's last
birthday will be used to determine the insurance
age. Most insurance carriers use age nearest.
Aggregate Limit:
In Liability Insurance, the maximum amount
of coverage under the contract period, regardless
of how many accidents occur.
Aleatory Contract:
A contract such as an insurance contract
in which the dollar amount to be paid by
each party is not equal. For example, a
policyholder could pay a premium and collect
nothing from the insurer, or the policyholder
could pay a premium and collect more from
the insurer than the amount of premium paid
if a loss occurs.
Amendment:
An official document that serves as a revision
to the original policy.
Annually Renewable Term (ART):
Provides the policyowner the right to renew
his/her term life insurance policy at the
end of each year without evidence of insurability.
This annual renewal right continues until
the policyowner reaches a specified age
or for the number of years determined by
the policy's contract. With most Annual(Yearly)
Renewable Term contracts, the premium increases
every year, especially as the policyowner
reaches age 50 and older.
Application:
A form that the proposed insured completes
with personal, financial and familial history
information and used by the insurer to decide
whether or not to accept the risk and determine
the proposed insured's underwriting classification.
Appraisal:
A valuation of property conducted to determine
the amount of insurance to be purchased
or the amount of damage to be paid.
Assignment:
The transfer of ownership rights of a life
insurance policy to another person or business.
Attained Age:
The age of the insured on a particular date.
Attending Physician's Statement (APS):
Medical information and records usually
obtained from the insured's primary care
physician and used in underwriting a life
or health insurance application.
Authorization:
The amount of insurance coverage an underwriter
will accept on a given color of property
or risk exposure.
Auto Collision:
In auto insurance, coverage separate from
comprehensive insurance that provides protection
to the insured in the case of physical damage
to the insured's car should a collision
occur with another inanimate object.
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