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
Abandonment Clause
A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.
Accident
A fortuitous, unexpected, undesigned, unintended event occurring suddenly.
Accommodation Line
Business accepted by a company which normally would be rejected according to a strict underwriting standard, but which is accepted because of the relationship of the agent to the company or the client to the company and agent.
Account Current
The report of premium transactions, usually on a monthly basis, either provided by the agency to the company, or by the company to the agency.
Accredited Advisor in Insurance (AAI)
Designation offered by the Insurance Institute of America (CPCU/IIAA) that stresses the production side of insurance, with study in personal and commercial property and liability contracts, sales and agency management.
Accredited Customer Service Representative (ACSR)
Designation offered by the Independent Insurance Agents of America (IIAA) that stresses the service side of insurance, with study in commercial and/or personal lines insurance contracts, account development, errors and omissions, and quality customer service.
Actual Cash Value (ACV)
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost - Depreciation).
Actuary
A statistical specialist responsible for rate, reserve, and dividend calculations as well as other insurance-related statistical studies.
Additional Insured
This is an individual, company or some other entity that is not considered the insured as defined under the insurance policy of another, but may be added to that policy by endorsement to afford a degree of insurance protection.
Additional Living Expense
A type of insurance included within homeowners’ policies. ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss.
Adjustable Exposures
Premiums for some coverages (exposures) are based on estimates of amounts which may change during the policy term. These include: sales, payroll, costs of contracts, numbers of items held in inventory, etc. These are reviewed and any premium adjustment is made at the time of audit. (See Audit)
Adjuster
A representative of the insurer who arranges for adjustment and/or settlement of a loss.
Admitted Aircraft Liability Coverage
A coverage sometimes written in conjunction with Aircraft passenger liability which can provide reimbursement for death or dismemberment without requiring legal action.
Advertising Injury
Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.
Agency Agreement
The contract which establishes the legal relationship between the agent and the insurer. In addition to other features, it sets forth the authority of the agent and his scale of commissions.
Agency Bill
A bill for the policy is produced in the agent’s office and the policyholder pays the premium to the agent.
Agency Management System
In-house computer capable of performing multiple functions: accounting, client and policy information maintained and word processing are included. Other functions include diary/suspense, claims handling, sales and marketing, etc.
Agent
Usually an insurance company appointed representative which is licensed by the state in which they do business. They can solicit, market, negotiate, bind, and administer insurance policies for the insurer.
Aggregate Limit
A type of policy limit found in liability policies which limits coverage to a specified total amount for all losses occurring within the policy period.
Agreed Value
Written with property insurance policies. It waives the Coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company.
Aircraft Hull Insurance
Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance
Coverage written to cover public and passenger liability and property damage liability.
Airport and Air Meet Liability
Coverage that provides protection to airports for bodily injury and property damage liability.
All Risk Insurance
Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against.
Allied Lines
Property coverages which are closely associated and frequently sold with fire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc.
Application
Form to collect information for a particular account.
Apportionment
The division of loss among insurers when two or more cover the same loss.
Appraisal
A survey of values in order to determine the appropriate amount of insurance to be written or the proper amount of loss to be paid.
Appraisal Clause
Clause which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose an appraiser, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive.
Assignment
Transfer of a legal right or interest in a policy from one party to another (as when an insured property is sold).
Assignment Clause
A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing.
Attractive Nuisance
This a condition that can attract and injure people (namely children). The occupants of land on which such a condition exists are liable for their injuries.
Audit
Procedure involving reporting and/or reviewing the policyholder’s records at sometime after the policy takes effect to determine the final premium for the policy.
Automobile Liability Insurance
Insurance to protect against financial loss because of a legal liability act that has automobile related injuries to others or damage to property of others.
Automobile Mechanical Breakdown Insurance
Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer’s or manufacturer’s warranty.
Automobile Physical Damage Insurance
Insurance coverage to indemnify insured for damage to, or loss, of an insured automobile resulting from covered perils.
Aviation Insurance
Insurance which provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage available separately for hangar keepers and airport owners or operators.
