Glossary Of Insurance Terms
Accident: An event or occurrence which is unforeseen and unintended.
Accidental Bodily Injury: Injury to the body as the result of an accident.
Accounting: The process of recording, summarising, and allocating all items of income and expense of the company and analyzing, verifying, and reporting the results.
Act of God: A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention.
Actuary: A person professionally trained in the technical aspects of pensions, insurance and related fields. The actuary estimates how much money must be contributed to an insurance or pension fund in order to provide future .
Additional insured: A person, company or entity protected by an insurance policy in addition to the insured.
Adjuster: A person who investigates and settles losses for an insurance carrier.
Adjusting: The process of investigating and settling losses with or by an insurance carrier.
Adverse Selection: The tendency of persons who present a poorer-than-average risk to apply for, or continue, insurance to a greater extent than do person with average or better-than-average expectations of loss.
Affidavit of prescription: legal procedures to become the owner of a property after having occupied same over thirty consecutive and uninterrupted years.
Age Limits: Stipulated minimum and maximum ages below and above which the company will not accept applications or may not renew policies.
Agent: An insurance company representative licensed by the state who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer.
All-risks Policy: Coverage by an insurance contract that promises to cover all losses except those losses specifically excluded in the policy.
Amendment: A formal document changing the provisions of an insurance policy signed jointly by the insurance company officer and the policy holder or his authorised representative.
Amortisation: Paying an interest-bearing liability by gradual reduction through a series of installments, as opposed to one lump-sum payment.
Application: A signed statement of facts made by a person applying for life insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.
Arbitration: A form of alternative dispute resolution where an unbiased person or panel renders an opinion as to responsibility for or extent of a loss.
Arson: The willful and.malicious burning of, or attempt to burn, any structure or other property, often with criminal or fraudulent intent.
Assets: All funds, property, goods, securities, rights of action, or resources of any kind owned by an insurance company. Statutory accounting, however, excludes non-admitted assets, such as deferred or overdue premiums, that would be considered assets under generally accepted accounting principles.
Assignment: The legal transfer of one person's interest in an insurance policy to another person.
Assignment Deed: An act by which the life assured (Borrower) assigns his/her life assurance policy to the lender as a guarantee for the reimbursement of his/her loan.
Aviation Insurance: Aircraft insurance including coverage of aircraft or their contents, the owner's liability, and accident insurance on the passengers.
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