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Accelrated Benefits

Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses

Accidental Death Benefits

A policy rider that states that the cause of death will be analyzed to determine if it complies witht he policy description of accidental death

Accumulation Period

The time before an annuitant's retirement during which the annuitant is making

Accidental Death Insurance

An insurance policy that provides payment if the insured's death is the result of an accident

Aquired Immunodeficiency Syndrome (AIDS)

An infections and incurable disease caused by the human immunodeficiency virus (HIV)

Acutal Cash Value (ACV)

The required amount to pay damages or for property loss. This amount is calculated based on theproperty's current replacement value minus depreciation


A person trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurnance; a person who, on behalf of the company, determines the mathematical probability of loss


A contract offered on a "take it or leave it" basis by an insurer, in which the insured's only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured

Adjustable Life

Life insurance which permits changes in teh face amount, premium period of protection, and the duration of the premium payment period


A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim


An individual appointed by a court as a fiduciary to settle the financial affairs and state of a deceased person

Admitted (Authorized) Insurer

An insurance company authorized and licensed to transact business in a particular state

Adult Day Care

A program for impaired adults that attempts to meet their health, social, and functional needs to a setting away from their homes

Adverse Selection

The tendency of risks with highter probablility of loss topurchase and maintain insurance more often than the risks who present lower probability


An insurance sales office or company


An insurance sales office or company

Agent's Authority

Special powers granted to an agent by his or her agency contract


A contract in which particpating parties exchange unequal amounts. Insurance contracts are aleatory in that the amout the insured will pay in permiums is unequal to the amount the insurer will pay in the event of a loss.

Alien Insurer

An insurance company that is incorporated outside the US

Alzheimer's Disease

A disease that causes the victim to become dysfunctional due to degeneration of brain cells and severe memory loss


Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and lab work, but not hospital room and board expenses

Annual Statement

A detailed financial report that an insurance company must submit every year to the isnurance department of state(s) in which it conducts business


A contract that provides income for a specified period of years, or for life

Apparent Authority

The appearance or the assumption of authoirty based ont eh actions, words, or deeds of the pricipal or because of circumstances the princiapl created


A person amking application for, or offering him/herself or another to be insured under an insurance contract


A docuemtn that provides information for underwriting purposes. After the policy is issued, any unanswered questions are considered waived by the insurer


The transfer of ownerhip rights of a life insurnace policy from one person to another

Attained Age

The age of the isnured at a determined date

Attending Physcian's Statement (APS)

A statement usually obtained from the applicant's doctor

Authorized (Admitted) Insurer

An insurance company authorized and licensed to transact business ina particular state


A method of dealing with risk by deliberately keeping away from it (i.e. if a person wanted to avoide the risk of being killed in an airplan crash, he/she might choose never to fly in a plane

Back-End Load

a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life insurance policy

Basic Illustration

A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements


The person who receives the proceedsfrom the policy when the insured dies

Binder (Binding Receipt)

A temporarycontract aht puts an insurance policy into force before the premium has been paid

Birthday Rule

The method of determining primary coverage for a dependent child under which the plan of the parent whose birthday occurs first in the caledar year is designated as primary


An individual who represents an insured in the process of purchasing and negotiating a contract of insurance

Buy-Sell Agreement

A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled

Buyer's Guide

A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision

Cash Value

The amount to which a policy owners is entitled if the policy is surrendered before maturity


A statement or booklet that confirms that a policy has been written and that describes the coverage in general

Certificate of Authority

A document that authorized a company to start conducting business and specifies the kind(s) of insurance a company can transact. it is illegal for an insurance company to transact insurance without this certificate

Certificate of Insurance

A legal docuemtn that indicates that an insurance policy has been issued, and that state both the amounts and types of insurance provided


A request for payment of the benefits provided by an insurance contract


An unfair trade preactice in which an agent uses physcial or mental force with the intent of inducing an applicant to purchase insurance

Coinsurance Clause

A provision that states that the insurer and the insured will share the losses covereed by the policy in a proportion agreed upon in advance


A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust


The payment made by insurers to agents or brokers for the sale and service of policies


The chief executive and administrative officer of a state insurance department

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