- AD&D
- See Accidental Death and Dismemberment Insurance.
- ALC
- American Life
Convention. A former intercompany Life insurer association, now merged into a
new association called the American Council of Life Insurance, Inc. See
American Council of Life Insurance, Inc.
- ASA
- Associate of the Society of
Actuaries. See Society of Actuaries.
- Absolute Beneficiary
- See Irrevocable
Beneficiary.
- Accelerated Endowment
- A dividend option allowing dividend
accumulations to be applied to convert a life insurance policy into an
endowment, or to shorten the endowment term.
- Accelerative Endowment
- An option to
use Life Insurance policy dividends to mature a policy as an endowment before
the regular maturity date.
- Accidental Death and Dismemberment
- Insurance
providing payment if the insured's death results from an accident or if the
insured accidentally severs a limb above the wrist or ankle joints or totally
and irreversibly loses his or her eyesight
- Accidental Death Benefit
- An extra
benefit which generally equals the face of the contract or principal sum,
payable in addition to other benefits in the event of death as the result of an
accident. See also Double Indemnity and Multiple Indemnity.
- Accumulation Value
- A
term used in Universal Life policies to describe the total of all premiums paid
and interest credited to the account before deductions for any expenses, loans
or surrenders.
- Accumulations (or Accumulation Benefits)
- Percentage additions to
policy benefits when the contract is continuously renewed.
- Adjustable Life
- A
form of life insurance which allows changes on the policy face amount, the
amount of premium, period of protection, and the length of the premium payment
period. See also Flexible Premium Adjustable Life Insurance Policy.
- Adjustable
Premium
- The right of an insurer to change the premium rate on classes of
insureds, or blocks of business at the time of policy renewal.
- Administrative
Services Only
- 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. See also Self Funded Plan.
- Age Change
- The date on which a person's
age, for insurance purposes, changes. In most Life Insurance contracts this is
the date midway between the insured's natural birth dates. Health insurers
frequently use the age of the previous birth date for rate determinations. On
the date of age change, a person's age may change to that of the last birth
date, the nearer birth date, or the next birth date, depending upon the way in
which the rating structure has been established by that particular insurer.
- Agent,
General
- See General Agent.
- American College
- An educational institution within the
Life Insurance business. It confers the Chartered Life Underwriter designation
and is concerned with continuing agents' training and with research and
publication in areas related to the Life Insurance business. It also sponsors
specialty Life Insurance courses and offers a college degree in financial
services. It was formerly known as the American College of Life Underwriters
(ACLU).
- American Council of Life Insurance, Inc.
- An association made up of
several previously independent insurance groups. It is concerned with
legislative matters, intercompany communications, and the exchange of
information.
- American Experience Table of Mortality
- A statement of expected
mortality rates based upon data accumulated in 1868 from a large number of
insured persons. This table was widely used by life insurers until the 1950s to
establish rates.
- American Life Convention (ALC)
- A former association of Life
companies; now part of the American Council of Life Insurance. See American
Council of Life Insurance, Inc.
- Amount At Risk
- The difference between the face
amount of a Whole Life Insurance contract and the cash value which it has built
up. The net amount at risk declines throughout the life of the contract, while
the policy reserve increases along with the cash value. It is the amount the
insurer would have to draw from its own funds rather than the policy reserve
were the contract to become a death claim.
- Annual Payment Annuity
- An annuity
which was purchased by the payment of annual premiums for a specified period of
time.
- Armstrong Investigation
- A study authorized by the New York state
legislature in 1905 which reviewed the operations and practices of Life
insurers operating in the state. Numerous changes in policy forms and
investment practices came from the study and were eventually reflected in other
state codes.
- Asset Share Value
- The value of a book of business to an insurer,
assuming that the business has been in force long enough to show true mortality
rates. This value must be known by the insurer in order to make rates and also
in order to sell the business. If assets share values do not grow properly,
either the rates have been too low or expenses too high.
- Assignment
- The transfer
of the ownership rights of a Life Insurance policy from one person to another.
The term also refers to the document that effects the transfer.
- Association
Group Insurance
- Technically, group insurance issued to an association rather
than to an employer or a union.
- Association of Life Insurance Council
- An
organization of Life company attorneys which seeks to increase knowledge in
areas of the law affecting Life Insurance.
- Attained Age
- The age an insured has
reached on a given date.
- Automatic Premium Loan
- A provision in a Life policy
authorizing the insurer to use the loan value to pay any premiums still due at
the end of the grace period.
- Automatic Reinsurance
- This form of reinsurance,
also known as Treaty Reinsurance, is one whereby an insurer must cede that
portion of a risk that is above the limit established by contract, and the
reinsurer must accept all risks ceded to it.
- Aviation Accident Insurance
- A form
of insurance which protects individuals as passengers or pilots, usually on
scheduled aircraft, or which covers the flight travel of the employees of a
company under a master policy.
- Aviation Hazard
- The extra hazard of death or
injury resulting from participation in aeronautics, usually as other than a
fare-paying passenger in licensed aircraft. This generally requires an extra
premium rating or waiver of certain benefits or coverage.
|
