Glossary

Accidental Means refers to an unexpected, unforeseen event causing injury or damage, where both the cause and the result are unintentional. Contemporary American insurance policies often stipulate coverage only for incidents classified under "accidental means" to prevent fraudulent claims and…

An "Accommodation Line" is an insurance policy issued as a favor or accommodation to an insured, often without rigorous underwriting. An insurance company at times will accept from an agent or broker whose entire account is satisfactory, business which would…

Account Current is a statement summarizing the transactions between a broker and an insurer, showing debits and credits over a specific period. With the rise of digital insurance platforms, maintaining accurate and transparent account current statements is crucial for compliance…

Accounts Receivable Insurance covers losses arising from the inability to collect accounts receivable due to insured perils. Pays for loss of records showing how much is due the insured. Insurance against loss due to inability to collect outstanding accounts receivable…

An Accounts Receivable Policy specifies the terms and conditions under which accounts receivable insurance operates. In contemporary practice, these policies are tailored to address the unique risks of different industries, ensuring comprehensive protection against diverse threats to a company’s receivables.…

Accretion refers to the gradual and natural accumulation of additional coverage or value over time. Accretion is often factored into long-term insurance products like annuities, where policy value increases are crucial for retirement planning amidst fluctuating economic conditions in the…

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…

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.…

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…

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,…

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…

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…

Active life reserve : Known as policy reserve, this is a reserve held by companies issuing accident and sickness policies to account for increasing claim rates with age, despite level premiums. Introduction of dynamic premium adjustments based on the actual…

Actual cash value : The present-day value of property measured in cash, arrived at by taking the replacement cost and de- ducting for depreciation brought about by physical wear and tear, and obsolescence. For example, a burglary policy will insure…

Actual total loss - Total loss Actuary : A situation where the insured property is completely destroyed or damaged to the extent that it is beyond repair or is uneconomical to repair.A technical expert in the life insurance and related…

Additional  Interest : An individual or entity, other than the primary insured, who has a financial interest in the property insured. This term is often used in property insurance, where a mortgage company or lender might be listed as an…

Additional Living Expense : A type of coverage in homeowners or renters insurance that pays for the extra costs of living elsewhere while your home is being repaired due to a covered loss. This includes costs such as hotel bills,…