Act of God
Act of God : An accident or event that is the result of natural causes, without any human intervention or agency, that could not have been prevented by reasonable foresight or care, such as floods, lightning, earthquake, or storms. Insurance…
Acquisition cost
The expenses incurred by an insurance company to secure new business. This includes commissions paid to agents and brokers, and in some companies, the costs associated with field supervision. Insurance companies may offer incentives to reduce acquisition costs by promoting…
Acknowledgement
The act of one who has executed a written instrument in going before a competent court or officer and declaring it to be his voluntary act and deed. Acknowledgement is a formal recognition by an insurer of receiving a notice,…
Acid and chemical damage policy
An Acid and Chemical Damage Policy provides coverage for damages caused by acids or chemicals, specifically in industrial settings. With increasing environmental regulations and industrial hazards, these specialized policies are essential for U.S. manufacturers, ensuring compliance and financial protection against…
Accumulation
Accumulation is the total combined exposure to a single risk or event across multiple policies or contracts. Modern insurers meticulously manage accumulation to avoid catastrophic losses, employing sophisticated modeling tools to track and mitigate aggregate exposures in diverse risk scenarios.…
Accrued depreciation
Accrued Depreciation is the cumulative reduction in the value of an asset over time due to wear and tear, age, or obsolescence. This concept is critical in property and casualty insurance policies, where accurately calculating depreciation impacts claim settlements, aligning…
