GLOSSARY OF TERMS

A TERMS

Abandonment: As used in property insurance, prohibits the insured from

abandoning damaged property to the insurance company for repair or

disposal

Accelerated Benefits Rider: An adjustment (rider) to a life insurance policy

that allows for the early payment of some portion of the policy's face

amount should the insured suffer from a terminal illness or injury.

Accidental Death Benefit Rider: An adjustment (rider) to a life insurance

policy that provides for payment of an additional cash benefit when death

occurs by accidental means. This amount depends on the value of the

policy.

Accidental Death Insurance: An Insurance poicy that provides payment if

the insured's death occurs as a results from an accident.

Accounts Receivable Coverage: Covers loss of sums owed to the insured by

its customers that are uncollectible due to damage by an insured peril to

accounts receivable records

Actual Cash Value (ACV): Cost to repair or replace damaged property with

materials of like kind and quality, less depreciation

Additional Insured: A person or organization for whom insured status is

arranged by endorsement

Advertising Injury: General liability coverage that insures against libel,

slander, invasion of privacy, copyright infringement and misappropriation of

advertising in connection with the insured's advertising of its goods or

services

Agent: An authorized representative of an insurance company.

Aggregate: The maximum amount an insurance company will pay during the

policy

All Risk Coverage: Property insurance covering loss arising from all causes

of loss except those that are specifically excluded

Annually Renewable Term: Term insurance that provides coverage for one

year and allows the policy owner to renew his or her coverage each year.

Application: A form with the information needed for an insurance company

to underwrite and rate a specific policy 

Assignment Assignment: The transfer of ownership of a Life Insurance

policy from one person to another.

Attained Age: Your current age. Your attained age is a factors life

insurance companies use to determine premiums.

Audit: A verification of the financial records, usually payroll or receipts, of

an organization to determine exposures and premiums

Automobile: A land motor vehicle, trailer or semi-trailer designed for travel

on public roads, not including 'mobile equipment'