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Accidental Death Benefit
A benefit in addition to the face amount of a life insurance policy, payable only if the insured dies as the result of an accident. Sometimes referred to as "double indemnity".

Accumulation Period
A specified period of time, such as 90 days, during which the insured person must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

Actual Cash Value
The value of property based on the cost of repairing or replacing it with property of the same kind and quality. Typically, actual cash value equals the current replacement cost minus depreciation (age, condition, length of time in use, and obsolescence).

Adjustable Life Insurance
A form of ordinary life insurance which allows the policy owner to change his or her protection from term to whole life and back, raise or lower the amount of the policy, and increase or decrease the premium.

Annual Aggregate Deductibles - Professional Liability Insurance
Under the aggregate deductible option of a professional liability policy, deductibles are assessed on an annual aggregate, or cumulative basis, rather than on a per claim basis. The result is that, at a minimal additional cost, aggregate deductibles reduce out-of-pocket deductible expenses if a firm is faced with more than one claim in a policy period.
For example, under the per claim deductible option, a firm with a $1,000 deductible that has two claims in a policy period would face a total deductible cost of $2,000. Under the aggregate deductible option, the same firm would pay only $1,000 in deductible costs for the entire policy period, regardless of the number of claims (up to the limit of liability).

Aggregate Indemnity
The maximum dollar amount that may be collected for any disability, period of disability, or under the policy.

Allocated Benefits
Benefits for which the maximum amount payable for specific services is itemized in the contract.

Amendment
A formal document changing the provisions of an insurance policy signed jointly by the insurance company officer and the policyholder or his or her authorized representative.

Annuity
Any series of payments made or received at regular intervals.

Annuity Certain
One of the two major classifications of annuities. Any series of payments made at regular intervals for a specified period of time without reference to the life or death of the individual (s) concerned. Life insurance companies do not sell annuities certain.

Association Group
A group formed from members of a trade or a professional association for the group under one master health insurance contract.

Audit of Non-public Clients
Audit in accordance with Generally Accepted Auditing Standards (GAAS) issued by the AICPA designed to express an opinion regarding a client's financial statements taken as a whole. The client is an entity that is not registered or does not file audited financial statements with the SEC or any state securities regulator and whose stock is not available for sale to the general public through an organized exchange or any other method. This includes governmental entities and not-for-profit organizations.

Auto Collision Coverage
Optional auto insurance which pays for damage to your car caused by collision with another car or object, or by rolling the car over. Frequently required if you have a car loan.

Auto Comprehensive Physical Damage Coverage
Optional auto insurance which pays for damage to your auto caused by things other than collision or rolling the car over, such as fire, theft, vandalism, flood or hail. Frequently required if you have a car loan.

Automatic Premium Loan
A policy loan authorized in advance by the policy owner to be used only to pay a premium which remains unpaid at the end of the grace period.

This information should not be construed as legal advice or a legal opinion on any factual situation. This summary is for illustrative purposes and is not a contract. It is intended to provide a general overview, at the time first posted, of the topics described. Only the insurance policy can give actual terms, conditions and exclusions.