401(K) PLAN - An employer-sponsored retirement savings plan funded by employee contributions, which may or may not be matched by the employer. Federal laws allow employees to invest pretax dollars, up to a stated maximum each year.
A-SHARE VARIABLE ANNUITY
A-SHARE VARIABLE ANNUITY - A form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge.
ACCELERATED DEATH BENEFITS
ACCELERATED DEATH BENEFITS - A life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. This is in lieu of a traditional policy that pays beneficiaries after the insured‘s death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries.
ACCIDENT AND HEALTH INSURANCE
ACCIDENT AND HEALTH INSURANCE - Coverage for accidental injury, accidental death, and related health expenses. Benefits will pay for preventative services, medical expenses and catastrophic care, with limits.
ACCOUNT RECEIVABLES - See Receivables
ACCOUNTABLE CARE ORGANIZATION (ACO)
These organizations coordinate patient care and provide the full range of health care services for patients. The health reform law provides incentives for providers who join together to form such organizations and who agree to be accountable for the quality, cost, and overall care of Medicare beneficiaries who are enrolled in the traditional fee-for-service program who are assigned to the ACO.
ACTUAL CASH VALUE
ACTUAL CASH VALUE - A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. (See Replacement cost )
ACTUARY - An insurance professional skilled in the analysis, evaluation and management of statistical information. Evaluates insurance firms‘ reserves, determines rates and rating methods, and determines other business and financial risks.
ADDITIONAL LIVING EXPENSES
ADDITIONAL LIVING EXPENSES - Extra charges covered by homeowners policies over and above the policyholder‘s customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.
ADJUSTER - An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.
ADMITTED ASSETS - Assets recognized and accepted by state insurance laws in determining the solvency of insurers and reinsurers. To make it easier to assess an insurance company‘s financial position, state statutory accounting rules do not permit certain assets to be included on the balance sheet. Only assets that can be easily sold in the event of liquidation or borrowed against, and receivables for which payment can be reasonably anticipated, are included in admitted assets. (See Assets )
ADMITTED COMPANY - An insurance company licensed and authorized to do business in a particular state.
ADVERSE SELECTION - The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all, as in the case of floods. (Flood insurance is provided by the federal government but sold mostly through the private market.) In the case of natural disasters, such as earthquakes, adverse selection concentrates risk instead of spreading it. Insurance works best when risk is shared among large numbers of policyholders.
AFFINITY SALES - Selling insurance through groups such as professional and business associations.
AFTERMARKET PARTS - See Crash parts; Generic auto parts
Van Zandt, Emrich & Cary, Inc.
12401 Plantside Drive, Louisville, KY 40299
502-456-2001 or 800-928-7355
8:00AM to 4:45PM (Monday-Friday)
Due to licensing restrictions, state and territory limitations may apply.