Dictionary of Insurance

Absolute ownership refers to the complete and unrestricted ownership rights a policyholder has over an insurance policy. In the U.S., this means the owner can change beneficiaries, surrender the policy for its cash value, or take out loans against it.…

Absolute Assignment term denotes the complete transfer of all rights and ownership of an insurance policy from one party to another. In the U.S., this is often seen in life insurance policies where the original policyholder transfers all interests to…

Abatement refers to the reduction in the amount of a claim due to policy provisions such as deductibles, policy limits, or coinsurance. For example, if a health insurance policy has a high deductible, the abatement represents the portion of medical…

Abandonment refers to the act of an insured party relinquishing their rights to property that is significantly damaged or deemed a total loss, often seen in marine or property insurance. For instance, after a natural disaster, an insured homeowner might…