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
Accidental Bodily Injury - Bodily injury resulting from an accident
Accidental Death and Dismemberment Insurance (AD&D) - A form of insurance providing benefits in the event of accidental death or the accidental loss of sight (or the loss of a member(s), sucah as an arm or a leg).
Accidental Death Benefit - A lump-sum payment for loss of life due to an accident that was the direct cause of death. The cause of the mishap must be accidental for a benefit to be payable under the policy.
Accidental Means - An unforeseen, unexpected, unintended cause of an accident that results in an injury. The cause of the action and the result must not be intentional or there will be no coverage.
Accumulatoin Provision - A percentage increase made in the benefits available under the policy. It is intended as a bonus to the insured for continous renewals. (It is not usually included in policies issued currently.)
Adverse Selection - The tendency of a disproportionate number of poor risks to purchase life insurance or maintain existing insurance in force (e.g., the selection against the insurer).
Agent - An authorized representative of an insurance company (ies) who solicits, negotiates, or countersigns life insurance and/or annuity contracts (in many companies he also sells health insurance). An agent represents the company.
Aggregate Amount - The maximum dollar amount that can be collected under any policy for an disability or period of disability.
Annuity - a contract providing periodic income payments for a fixed period of time or during the lifetime of an annuitant. It may be defined as the systematic liquidation.
Annuity, Cash Refund - A life annuity contract that provides that upon the death of the annuitant, the beneficiary (or his estate) will receive a lump sum payment, which represents the difference between the amount the annuitant paid to the insurance company and the total income payments received by the annuitant.
Annuity, Certain - Payable for a minimum specified period and continuing thereafter throughout the lifetime of the annuitant.
Annuity, Deferred - Payments commence more than one year after the payment of the first (or single) premium to the insurance company, usually at a selected retirement age.
Annuity, Immediate - The income commences one, three, six, or 12 months after its purchase.
Annuity, Installment Refund - Similar to a cash refund annuity, except that money is refunded in installment payments and the insurance company makes payments to the designated beneficiary until the total of the payments made to the annuitant and the beneficiary equals the consideration paid.
Assingee - A person, firm, or corporation to whom the rights under a contract are assigned in their entirety or in part.
Assingment - The legal transfer of the benefits or rights of a policy by the insured to another party.
Association Group - Individual policies written to cover members of a trade or professional association (e.g., American Medical Association or the Ohio Association of Hat Manufacturers).
Attained Age - An age that a person or an insured has attained on a given date. For life insurance purposes, the age is base on either the nearest birthday or the last birthday, depending upon the practices of the the insurance company involved.
Automatic Premium Loan (Automatic Premium Advance) - A provision in a life insurance policy that states that if an insured fails to pay a premium by the end of the grace period, the amount of the premium due will be loaned to the insured automatically. However, the loan value of the policy must be sufficient to cover the loans plus interest. Generally, the insured must request that this clause be made a part of the policy at the time of application.
Average Earnings Clause (Relation of Earnings to Insurance) - A provision in the policy that allows the insurance company to reduce the month income disability enefits payable if th einsured’s total income bbenefits exceed either his current monthly earnings or his average monthly earnings during the two-year period immediately preceding the disability.
Aviation Clause - A clause that limits the liability of the insurance company if the death of an insured is caused by certain types of aviation accidents.
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