Insurance Terms - A
A (or judgment) rates - (rates (cost calculations involved in determining charges for insurance premiums) that are not backed up by loss experience statistics - rates based on the judgment of the underwriter on an individual basis)
above normal loss (ANL) - (losses above what would be the predictable and expected loss - the normal loss is the noncatastrophic level of loss within the working layer (the area where most losses are expected to occur) )
accident and health insurance (A&H) - (an older name for health insurance)
accident and sickness insurance (A&S) - (an older name for health insurance)
Accidental Death Benefit (ADB) - (the amount payable by a life insurance policy in the event of the death of the named insured, when the death is the result of an accidental injury, an infection resulting from an accidental injury, or an accidental drowning)
Accidental Death and Dismemberment (AD&D) - (form of accident insurance that indemnifies or pays a stated benefit to an insured or his/her beneficiary in the event of bodily injury or death due to accidental means (other than natural causes))
accounts receivable coverage (AR) - (insurance coverage against loss of amounts owed to an insured by its customers that are uncollectivle because of damage to accounts receivable records)
Accredited Advisor in Insurance (AAI) - (professional designation earned after the successful completion of three national examinations given by the Insurance Institute of America (IIA))
Accredited Customer Service Representative (ACSR) -
acquired immunodeficiency (immune deficiency) syndrome (AIDS) - (an infectious and incurable disease caused by the human immunodeficiency virus (HIV))
activities of daily living (ADL) - (everyday living functions and activities performed by individuals without assistance - these functions include mobility, dressing, personal hygiene, and eating)
activities of daily living standards (ADL) - (standards used to assess the ability of an individual to live independently, measured by the ability to perform unaided such activities as eating, bathing, toiletry, dressing, and walking - ADL standards may be used as a way to measure or define eligibility for long-term care)
Actual Cash Value (ACV) - (in property and auto physical damage insurance a determination of the value of insured property, used to calculate the premium and the amount to be paid in the event of loss - normally calculated in 3 ways: 1) cost to repair or replace, minus depreciation; 2) fair market value; or 3) consideration of all relevant evidence)
Actuarial Statement of Practice (ASOP) -
additional insured (AI) - (a person or organization not automatically included as an insured under an insurance policy but for whom insured status is arranged, usually by endorsement)
additional living expense coverage (ALE) - (a type of insurance coverage normally included within homeowners policies which reimburses the insured for expenses beyond normal, such as motel bills while a damaged residence is being repaired)
additional premium (AP) -
adjusted community rating (ACR) - (in the health insurance area, the charge for insurance to all insureds based on the medical and hospital costs in a community or area, adjusted by factors specific to a particular group)
adjuster - (A representative of the insurer who seeks to determine the extent of the firm's liability for loss when a claim is submitted.)
Administrative Services Arrangement (ASA) - (arrangement (contract) between an employer group health insurance program and an insurer, or other organization, to provide administrative services, such as manual preparation, communication with employees, or the payment of benefits, to the employer program)
Administrative Services Only (ASO) - (in an employee benefit plan, such as a pension plan, the services of an administrative nature, such as clerical staff - in contrast to trustee services, such as direction or management of investment decisions - provision in a plan document stating that the plan offers only administrative services; in the insurance area generally, the services provided by an insurer, such as providing claim forms and processing claims, when the insurer is not the party funding the loss payments)
Advance Loss of Profit insurance (ALOP) - (also known as Delayed Completion Coverage) (insurance coverage for construction projects which covers income loss or additional expense resulting from a delay in the completion of the project when the delay is caused by covered property damage (PD))
Advocates for Highway and Auto Safety (AHAS) -
Age Discrimination in Employment Act (ADEA) - (act that prohibits employers from requiring employees to retire at age 70; also prohibits employee benefit plans from discriminating against employees in the 40 to 70 age group as to contributions or benefits)
age/sex rates (ASR) - (separate rates established for category groupings based on age and sex)
Agents Council for Technology (ACT) -
AIDS-related complex (ARC) - (the term given to a variety of symptoms and opportunistic infections and conditions that frequently manifest themselves in patients suffering from acquired immunodeficiency syndrome (AIDS))
All-Industry Research Advisory Council (AIRAC) -
all other perils (AOP) -
All Risks coverage (AR) - (property insurance covering losses from most causes except those specifically excluded - term is now less used because suggests broader coverage than actually covered)
Alliance of American Insurers (AAI) - (membership organization, based in Chicago, Illinois, consisting principally of property and casualty insurance companies)
Alliance of Insurance Agents and Brokers (AIAB) -
allocated loss adjustment expense (ALAE) - (loss adjustment expenses that are assignable or allocable to specific claims, such as fees paid to outside attorneys and experts used to defend claims)
Alternative Dispute Resolution (ADR) - (unofficial and voluntary nonlitigation processes, in many different forms, employed by insurance companies to resolve contractual disputes with their insureds - objective is to avoid the costs of litigation - can include nonbinding arbitration, simple negotiations, and mediation by a third party)
alternative risk transfer market (ART) - (name for the marketplace in which alternatives to commercial insurance, such as captive insurance companies and pools, can be arranged)
America's Health Insurance Plans (AHIP) -
American Academy of Actuaries (AAA) -
American Academy of Insurance Medicine (AAIM) -
American Academy of Physical Medicine and Rehabilitation (AAPMR) -
American Arbitration Association (AAA) -
American Association of Crops Insurers (AACI) -
American Association of Dental Consultants (AADC) -
American Association of Insurance Management Consultants (AAIMC) -
American Association of Insurance Services (AAIS) - (an association of insurance companies which provides various technical services for its members and subscribers - ASIS offers program services; files rates, rules, and forms on behalf of member and subscriber companies; acts as an official statistical agent; and offers various professional services for its member companies)
American Association for Long Term Care Insurance (AALTCI) -
American Association of Managing General Agents (AAMGA) -
American Association of Petroleum Landmen (AAPL) - (organization of individuals who negotiate leases of oil and gas properties with mineral rights owners)
American Association of State Compensation Insurance Funds (AASCIF) -
American Bankers Association (ABA) - (organization representing commercial banks in the U.S.)
American Bar Association (ABA) - (organization representing practicing attorneys in the U.S.)
American Board of Independent Medical Examiners (ABIME) -
American Board of Industrial Hygienists (ABIH) -
American Bureau of Shipping (ABS) -
American Cargo War Risk Reinsurance Exchange (ACWRRE) -
American Civil Liberties Union (ACLU) - (legal organization of attorneys focusing on issues of individual rights)
The American College (AC) - (an educational institution within the life insurance industry which provides training, conducts research, and publishes reports on its research results - formerly known as the American College of Life Underwriters (ACLU))
American College of Life Underwriters (ACLU) - (former name of The American College (AC), an educational institution within the life insurance business, which confers the Chartered Life Underwriter designation, provides training for agents, conducts research, and publishes in areas related to life insurance)
American Consulting Engineers Council (ACEC) -
American Corporate Counsel Association (ACCA) - (Former name of the organization of in-house attorneys representing corporations/businesses - now the Association of Corporate Counsel (ACA))
American Corporate Counsel Institute (ACCI) -
American Council of Life Insurers (ACLI) -
American Depositary Receipt (ADR) - (negotiable certificate issued by a U.S. bank for shares of stock issued by a foreign corporation)
American Educational Institute (AEI) -
American Excess Insurance Association (AEIA) -
American Foreign Insurance Association (AFIA) -
American Health Law Association (AHLA) - (nonprofit organization of attorneys representing hospitals and healthcare organizations)
American Hull Insurance Syndicate (AHIS) -
American Industrial Hygiene Association (AIHA) -
American Institute of Architects (AIA) - (professional organization which, in the insurance area, promulgates standard construction contracts)
American Institute of Certified Public Accountants (AICPA) - (U.S. professional organization representing practicing Certified Public Accountants (CPAs))
American Institute for Chartered Property Casualty Underwriters (AICPCU) - (independent nonprofit organization providing educational programs and professional certifications to people engaged in the property-casualty (P&C) insurance industry - formerly the AIPLU)
American Institute of Marine Underwriters (AIMU) -
American Institute for Property and Liability Underwriters (AIPLU) - (former name of the American Institute for Chartered Property Casualty Underwriters (AICPU))
American Insurance Association (AIA) - (membership organization of capital stock property and liability insurance companies - performs informational, educational, technical, and legislative services for member companies)
American Insurance Services Group, Inc. (AISG) -
American Land Title Association (ALTA) -
American Life Convention (ALC) - (now the American Council of Life Insurance (ACLI) - association of life insurance companies focusing on legislation and public relations in areas that may affect the life insurance business at the federal, state, and local levels)
American Marine Insurance Clearinghouse (AMIC) -
American Marine Insurance Forum (AMIF) -
American Medical Association (AMA) - (organization representing practicing physicians in the U.S.)
American Municipal Bond Assurance Corp. (AMBAC) -
American National Standards Institute (ANSI) - (standards-setting organization composed of government agencies, businesses, organizations, educational institutions, and individuals)
American Nuclear Insurers (ANI) -
American Petroleum Institute (API) -
American Risk and Insurance Association (ARIA) - (membership organization of companies, academics, and individuals in the insurance business whose interest is to further education and research in insurance and risk management)
American Society of Chartered Life Underwriters (ASCLU) -
American Society for Healthcare Risk Management (ASHRM) -
American Society of Industrial Security (ASIS) - (organization of individuals and professionals involved in security operations, with a focus on physical security at commercial and industrial facilities, as well as public events)
American Society of Insurance Management (ASIM) -
American Society of Mechanical Engineers (ASME) -
American Society of Pension Professionals & Actuaries (ASPPA) - (formerly ASPA)
American Society of Safety Engineers (ASSE) -
American Society for Testing and Materials International (ASTM) - (organization that develops international standards for materials, products, systems, and services used in construction, manufacturing, and transportation)
American Society of Training and Development (ASTD) -
American Subcontractors Association (ASA) -
American Tort Reform Association (ATRA) -
American Trucking Association, Inc. (ATA) -
Americans with Disabilities Act (ADA) - (federal statute passed in 1990, aimed at preventing discrimination in hiring based on a person's having a "disability")
annual implementation plan (AIP) -
Annual Percentage Rate (APR) - (annual rate of interest charged by a lender and paid by a borrower)
annual (or yearly) renewable term (ART) - (term life insurance that may be renewed annually without evidence of insurability until some stated age)
annuity (AN) - ( 1) an amount of money payable yearly, or at some other regular interval; 2) in the insurance area, an agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period)
anti-concurrent cause provision (ACC) - (a term in a first-party policy that indicates that a loss caused by a combination of covered and excluded causes of losses will not be covered)
Applied Systems Client Network (ASCN) (ASCnet) -
architect/engineer (A/E) -
Architects and Engineers liability coverage (A&E) - (a form of liability insurance that insures design professionals against errors and omissions in their work)
artificial intelligence (AI) - (the use of computers to simulate human thinking)
as interest may appear (AIMA) - (a phrase added to insurance policies and endorsements to add others as insureds - similar to (as their interests may appear (ATIMA))
as their interests may appear (ATIMA) - (phrase added to insurance policies and endorsements to add others as insureds - intended to include individuals with a financial interest in (or claim to) property, in addition to the owner, such as contractors and subcontractors)
asbestos-containing material (ACM) - (term normally used to mean regulated asbestos-containing material (RACM) meaning friable (crumbled or reduced to powder by hand pressure) or non-friable asbestos-containing material that will be or has been subjected to sanding, grinding, cutting, or abrading, or has been reduced to powder)
Asbestos Hazard Emergency Response Act of 1986 (AHERA) -
asset retirement obligation (ARO) -
Asset Valuation Reserve (AVR) - (explicit liability reserve amount, required by the National Association of Insurance Commissioners (NAIC) - the reserve amount which an insurance company must keep to cover possible losses in the value of its assets - a reserve fund, generally, is a fund established to cover losses)
assigned risk (AR) - (in the workers' comp insurance area, method of providing insurance for certain risks which might not otherwise be covered - risks are assigned, or required to be covered by state insurance codes)
Associate in Automation Management (AAM) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of three national exams - designed for insurance practitioners who use automation in their work, supervise automated activities, or provide information services to practitioners)
Associate of the Casualty Actuarial Society (ACAS) - (Fellow of the Casualty Actuarial Society (FCAS)) (designation gained by the completion of a series of examinations and other requirements)
Associate in Claims (AIC) - (professional designation awarded by the Insurance Institute of America (IIA) upon completion of national exams in claims review, adjustment, and examination)
Associate in Fidelity and Surety Bonding (AFSB) - (professional designation offered by the Insurance Institute of America (IIA) upon completion of national exams)
Associate in Information Technology (AIT) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams - geared to insurance professionals using information technology (IT))
Associate in Insurance Accounting and Finance (AIAF) - (professional designation awarded by the Insurance Institute of America (IIA) following passage of national exams emphasizing accounting and finance )
Associate in Insurance Services (AIS) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams with an emphasis on insurance topics)
Associate in Loss Control Management (ALCM) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams dealing with loss controls - selection, design, and implementaton)
Associate in Management (AIM) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams focused on an understanding of management principles - designed for upper and middle managers)
Associate in Marine Insurance Management (AMIM) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams involving inland and ocean marine insurance management - (marine insurance - coverage for goods in transit and the vehicles of transportation on waterways, land, and air))
Associate in Personal Insurance (API) - (professional designation awarded by the Insurance Institute of America (IIA) upon completion of national exams - intended for most levels of insurance personnel who deal in personal insurance, i.e., insurance purchased by individuals, as opposed to businesses or organizations)
Associate in Premium Auditing (APA) - (professional designation awarded by the Insurance Institute of America (IIA) upon completion of national exams covering topics in insurance and premium auditing)
Associate in Reinsurance (ARe) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams focusing on the reinsurance business and primary insurance company exposure, coverages, and operations)
Associate in Research and Planning (ARP) - (professional designation granted by the Insurance Institute of America (IIA) to individuals who have completed a series of examinations - designed for insurance company personnel working in the areas of research, planning, and related decision support functions)
Associate in Risk Management (ARM) - (professional designation granted by the American Institute for Property and Casualty Underwriters to individuals who have completed a series of examinations)
Associate in Risk Management for Public Entities (ARM-P) -
Associate in the Society of Actuaries (ASA) -
Associate in Surplus Lines Insurance (ASLI) - (professional designation awarded by the Insurance Institute of America (IIA) upon successful completion of national exams - designed for individuals who sell or provide surplus lines insurance or deal in the business of surplus lines insurance)
Associate in Underwriting (AU) - (professional designation awarded by the Insurance Institute of America (IIA) following the successful completion of national exams - designed for agency and company underwriters or those working in the underwriting area - underwriting is the process of examining, accepting, or rejecting insurance risks, and classifying those selected, in order to charge the proper premium for each)
Associated General Contractors of America (AGC) - (organization representing general contractors which develops standard construction contracts)
Associated Reporting Companies (ARCO) -
Associated Specialty Contractors (ASC) -
Associateship of the Chartered Insurance Institute (ACII) - (UK designation conferred by the Chartered Insurance Institute (CII) requiring successful completion of examinations on insurance and general business topics)
Association for Advanced Life Underwriting (AALU) -
Association of Casualty and Surety Companies (ACSC) -
Association of Certified Anti-Money Laundering Specialists (ACAMS) - (organization of individuals in the banking and financial services industries dealing with financial crimes and money laundering activities)
Association for Cooperative Operations Research and Development (ACORD) -
Association of Corporate Counsel (ACC) - (organization of in-house attorneys representing corporations/businesses - formerly the American Corporate Counsel Association (ACCA))
Association of Governmental Risk Pools (AGRIP) (AGRP) - (association formed to address the requirements of government risk pools - syndicates or associations of insurance companies or reinsurance companies organized to underwrite a particular risk)
Association of Health Insurance Advisors (AHIA) -
Association of Insurance Compliance Professionals (AICP) -
Association of Insurance Medical Directors of America (ALIMDA) -
Association of Insurance and Risk Managers in Industry and Commerce (AIRMIC) - (primarily a British association whose membership includes risk managers and insurance buyers, with an emphasis on risk management)
Association of Life and Health Administrators (ALHA) -
Association of Lloyd's Members (ALM) -
Association of Mill & Elevator Mutual Insurance Companies (AMEMIC) -
Association of Professional Insurance Women (APIW) -
Association of Trial Lawyers of America (ATLA) - (organization representing plaintiff/claimant personal injury attorneys)
Association of Workers' Compensation Boards of Canada (AWCBC) -
Assumed Interest Rate/Assumed Investment Return (AIR) - (assumed value assigned to annuitant's account during the annuity period/percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant)
assumption of liability endorsement (ALE) - (an endorsement added to an insurance policy to provide that, in the event of involvency of the insurance company, the amount of any loss that would have been recovered from the reinsurer by the insurance company will be paid instead directly to the policy holder by the reinsurer)
attending physician's statement (APS) - (a source of medical information used when underwriting a life or health insurance policy, usually obtained from the proposed insured's doctor)
auction rate security (ARS) - (a type of long-term bond, issued by a corporation or municipality, which resets its interest rate at various intervals)
Australian Risk Policy Institute (ARPI) -
automated teller machine (ATM) - (computer terminal allowing banking customers to make deposits, obtain cash from checking or savings accounts, pay bills, and transfer funds, without having to go to a bank teller window)
Automobile Claim Law Associate (ACLA) - (claims law specialist designation offered by the American Educational Institute (AEI) requiring the successful completion of self-study programs in insurance and auto claims)
Automobile Claim Law Specialist (ACLS) - (claims law specialist designation offered by the American Educational Institute (AEI) requiring the successful completion of AEI automobile claims self-study programs)
automobile insurance (AU) - (type of insurance that protects the insured against losses involving automobiles)
Automobile Insurance Plans Service Office (AIPSO) -
Automobile Insurers Bureau of Massachusetts (AIBM) -
Automobile Liability insurance (AL) - (insurance that protects the insured against financial loss because of legal liability for automobile-related injuries to others or damage to their property by an auto)
available seat miles (ASM) -
Average Indexed Monthly Earnings (AIME) - (a wage indexing formula based on earnings listed in the records of the Social Security Administration - method of calculating the Primary Insurance Amount (PIA) for Social Security benefits)
average length of stay (ALOS) - (the total number of patient days divided by the number of admissions and discharges during a specified period, which equals the average number of days in the hospital for each person admitted)
Average Monthly Earnings (AME) - (same as Average Monthly Wage) (Social Security wage calculation of worker's Primary Insurance Amount (PIA) for Social Security benefits)
Average Monthly Wage (AMW) - (Social Security wage calculation of worker's Primary Insurance Amount (PIA) for Social Security benefits)
average weekly wage (AWW) - (in the workers' comp area, an employee's pre-injury earning capacity, based on earnings in the period directly preceding a work-related injury or illness)
average yearly earned income devoted to a family in the future by a wage earner (AEIDF) - (component used in calculating the amount of life insurance required to replace lost future earnings of a wage earner)
aviation insurance (AV) - (a type of insurance policy that protects an insured against losses connected with the use of an airplane)
Aviation Insurance Association (AIA) -
Aviation Insurance Rating Bureau (AIRB) -