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Term Definition
A/E architect/engineer
AAI Accredited Adviser in Insurance; Alliance of American Insurers
ACC anti-concurrent cause provision
ACCELERATED DEATH BENEFITS

A life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. This is in lieu of a traditional policy that pays beneficiaries after the insured’s death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries.

ACCIDENT AND HEALTH INSURANCE Coverage for accidental injury, accidental death, and related health expenses. Benefits will pay for preventative services, medical expenses and catastrophic care, with limits.
ACCOUNT RECEIVABLES See Receivables
ACM asbestos containing materials
ACSR

Accredited Customer Service Representative an international designation program, boasting more designees than any other similar program. It was developed by the Independent Insurance Agents & Brokers of America to promote and recognize the professionalism of customer service personnel in the insurance industry.

ACTUAL CASH VALUE A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. (See Replacement cost )
ACTUARY

An insurance professional skilled in the analysis, evaluation and management of statistical information. Evaluates insurance firms' reserves, determines rates and rating methods, and determines other business and financial risks.

ACV actual cash value
ACWRRE American Cargo War Risk Reinsurance Exchange
AD&D accidental death and dismemberment
ADA Americans With Disabilities Act
ADB accidental death benefit
ADDITIONAL LIVING EXPENSES

Extra charges covered by homeowners policies over and above the policyholder’s customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.

ADEA Age Discrimination in Employment Act
ADJUSTER

An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement.

ADMITTED ASSETS

Assets recognized and accepted by state insurance laws in determining the solvency of insurers and reinsurers.

ADMITTED COMPANY An insurance company licensed and authorized to do business in a particular state.
ADR alternative dispute resolution; American depository receipt
ADVERSE SELECTION

The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all, as in the case of floods.

AFFINITY SALES Selling insurance through groups such as professional and business associations.
AFSB Associate in Fidelity and Surety Bonding
AFTERMARKET PARTS See Crash parts; Generic auto parts
AGENCY COMPANIES Companies that market and sell products via independent agents.
AGENT

Insurance is sold by two types of agents: independent agents, who are self-employed, represent several insurance companies and are paid on commission; and exclusive or captive agents, who represent only one insurance company.

AHERA Asbestos Hazard Emergency Response Act
AHIS American Hull Insurance Syndicate
AI additional insured
AIC Associate in Claims
AIDS Acquired Immune Deficiency Syndrome
AIM Associate in Management
AIMA as interest may appear
AIME average indexed monthly earnings
AIP annual implementation plan
AIPSO Automobile Insurance Plans Service Office
AIRAC All-Industry Research Advisory Council
AIRB Aviation Insurance Rating Bureau
AIS Associate in Insurance Services
AISG American Insurance Services Group, Inc.
AIT Associate in Information Technology
AL automobile liability
ALAE allocated loss adjustment expense
ALC American Life Convention
ALCM Associate in Loss Control Management
ALE additional living expense (coverage); assumption of liability endorsement
ALIEN INSURANCE COMPANY

An insurance company incorporated under the laws of a foreign country, as opposed to a foreign insurance company which does business in states outside its own.

ALIMDA Association of Life Insurance Medical Directors of America
ALLIED LINES Property insurance that is usually bought in conjunction with fire insurance; it includes wind, water damage and vandalism coverage.
ALM Association of Lloyd's Members
ALOP advance loss of profit insurance
ALOS average length of stay
ALTERNATIVE DISPUTE RESOLUTION / ADR

An alternative to going to court to settle disputes. Methods include arbitration, where disputing parties agree to be bound to the decision of an independent third party, and mediation, where a third party tries to arrange a settlement between two sides.

ALTERNATIVE MARKETS

Nontraditional mechanisms used to finance risk. This includes captives, which are insurers owned by one or more non-insurers to provide owners with coverage. Risk-retention groups, formed by members of similar professions or businesses to obtain liability insurance.

AMBAC American Municipal Bond Assurance Corp.
AMIC American Marine Insurance Clearinghouse
AMIF American Marine Insurance Forum
AMIM Associate in Marine Insurance Management
AMT alternative minimum tax
AMW average monthly wage
ANI American Nuclear Insurers
ANL above normal loss
ANNUAL ANNUITY CONTRACT FEE Covers the cost of administering an annuity contract.
ANNUAL STATEMENT

Summary of an insurers or reinsurers financial operations for a particular year, including a balance sheet. It is filed with the state insurance department of each jurisdiction in which the company is licensed to conduct business.

ANNUITANT The person who receives the income from an annuity contract. Usually the owner of the contract or his or her spouse.
ANNUITIZATION The conversion of the account balance of a deferred annuity contract to income payments.
ANNUITY

A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitants lifetime. There are two basic types of annuities: deferred and immediate.

ANNUITY ACCUMULATION PHASE OR PERIOD The period during which the owner of a deferred annuity makes payments to build up assets.
ANNUITY ADMINISTRATIVE CHARGES Covers the cost of customer services for owners of variable annuities.
ANNUITY BENEFICIARY In certain types of annuities, a person who receives annuity contract payments if the annuity owner or annuitant dies while payments are still due.
ANNUITY CONTRACT An agreement similar to an insurance policy for other insurance products such as auto insurance.
ANNUITY CONTRACT OWNER The person or entity that purchases an annuity and has all rights to the contract. Usually, but not always, the annuitant (the person who receives incomes from the contract).
ANNUITY DEATH BENEFITS The guarantee that if an annuity contract owner dies before annuitization (the switchover from the savings to the payment phase) the beneficiary will receive the value of the annuity that is due.
ANNUITY INSURANCE CHARGES Covers administrative and mortality and expense risk costs.
ANNUITY INVESTMENT MANAGEMENT FEE The fee paid for the management of variable annuity invested assets.
ANNUITY ISSUER The insurance company that issues the annuity.
ANNUITY PROSPECTUS Legal document providing detailed information about variable annuity contracts. Must be offered to each prospective buyer.
ANNUITY PURCHASE RATE The cost of an annuity based on such factors as the age and gender of the contract owner.
ANSI American National Standards Institute
ANTITRUST LAWS

Laws that prohibit companies from working as a group to set prices, restrict supplies or stop competition in the marketplace. The insurance industry is subject to state antitrust laws but has a limited exemption from federal antitrust laws.

AOP all other perils
AP additional premium
APA Associate in Premium Auditing
API American Petroleum Institute; Associate in Personal Insurance
APIW Association of Professional Insurance Women
AR all risk; accounts receivable; assigned risk
ARe Associate in Reinsurance
ARIA American Risk and Insurance Association
ARM Associate in Risk Management
ARM-P

Associate in Risk Management for Public Entities

ARO asset retirement obligation
ARP Associate in Research and Planning
ART alternative risk transfer; annual renewable term (life insurance)
ASA administrative services arrangement; Associate in Society of Actuaries
ASLI Associate in Surplus Lines Insurance
ASM available seat miles
ASO administrative services only
ATM automated teller machine
AU Associate in Underwriting
AWW average weekly wage

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