Accident and health (Sickness) Insurance
A form of insurance compensating an individual for loss as a result of accident or illness.

Act of God
A direct, violent sudden act of nature that could not have been foreseen, or if foreseen, it's effect could not have been prevented, e.g., flood, earthquake.

Actual Cash Value
The fair market value of property taking into account factors that might augment or reduce the value of the property in question.

Additional Insured
A person other than the named insured who is protected by the terms of the policy. Most automobile policies, for example, insure a specific individual as an insured, but also insure anyone driving with that insured's consent. The additional insured may be "named" or "unnamed."

Additional Living Expense Insurance
Coverage applicable when an insured's dwelling is damaged by an insured peril to such an extent that one cannot live in it until repaired. This insurance pays extra amount it costs to live elsewhere until repairs are made, such as the cost of living in a hotel.

Adjuster
1) One who represents an insurer on investigations and dealings with respect to settlement of claims. This may be a salaried employee of an insurer or one who operates as an Independent Adjuster.
2) A Public Adjuster is an adjuster who is employed by a policyholder to represent him in his claim negotiations with an insurance company. As compensation the Public Adjuster usually takes a percentage of the amount collected. He does not act on behalf of an insurance company.

Adjustment
The process of arriving at an amount of settlement for a claim. It may consist of a series of computations to arrive at the amount of a loss, as in a complicated fire loss. It may involve discussions of liability, quantum and other such matters as might be the case in a problem liability claim. It may contain both.

Adjustment Expenses
Expenses paid in connection with the settlement of claims, both internal (company) and external (consultants).

Agent
1) A person who is employed to act on behalf of another.
2) An insurance agent is one who contracts with one or more insurance companies to sell their insurance policies to the public and is paid a commission on or receives compensation for such business. See also Broker.

Agent of Record
The agent indicated on and for each insurance policy, binder or acceptance. The agent on a particular policy or bond.

All Risk Policy
A name given to an insurance policy which covers against the loss caused by all perils except those which are specifically excluded by the terms of the policy. Frequently, a policy if insurance is written to insure damage to property caused by specific "named perils," which are listed on the policy. However, policies may be issued in certain cases to insure against "all risks of loss or damage" and are then called "all risks" policies. The term excludes insurance against certain hazards.

Amount of Insurance
The limit of payment for which an insurer is liable under a policy.

Annual Bid Bond Service
An arrangement whereby a contractor pays a premium once a year and in return gets all or a certain number of Bid Bonds and Consents of Surety free of charge.

Annuity
An insurance policy paying a specified amount in regular payments for the life of the annuitant. It is most commonly a form of life insurance which guarantees payment of a certain sum starting at a set time, usually the retirement of the insured, and payable for the life of the insured.

Applicant
The person or firm requesting insurance.

Apportionment
The process through which one determines how much each policy on a risk must pay when there is more than one policy involved in a loss.

Appraisal
A valuation or an estimation of the value of property usually done by an expert in that field who has no personal interest in the property.

Appraiser
Person who because of special knowledge is vested with authority in determining the real value of property or damage.

Assignment
Legal transference; the transfer of an entire interest from one party to another. Insurance policies are personal contracts and are not transferable except to spouse unless special consent of the insurance company is granted.

Automatic Premium Loan
A section in a life insurance policy that provides that if premium is not paid by the policyholder within the allotted time after the due date, the amount of the premium will be loaned to him automatically. It is limited to the cash value of the policy and ceases when the cash value of the policy is insufficient to cover the loan, plus interest on the loan.

Automobile Fleet
A group of automobiles under the same ownership and management which may, because of the number, justify a discount in the insurance premium.

Bailee
In contract and property law one to whom goods or property are entrusted for a stated purpose. Can be either gratuitous (for no consideration) or for hire (for consideration).

Bailment:
The act of placing goods in the possession of a bailee.

Bailor:
A person entrusting goods to another.

Balance Sheet:
Financial statement showing assets, liabilities and equity of a company.

Basic Premium:
A starting charge made to which is added the premium developed by the application of rates as directed.

Betterment
Physical improvements beyond mere maintenance or repairs that augment the value of a property .

Binder
A written or oral agreement given by an insurer to insure a risk, pending the issue of a policy. A binder is deemed to be the policy and must be cancelled in the same manner.

Blanket Crime Policy
An individual policy covering several crime perils on a single amount rather than on individual limits.

Blanket Policy (Insurance)
Insurance on two or more items, or locations, in one aggregate sum insured without separate amounts for each item.

Boiler and Machinery Insurance
Coverage that indemnifies in the event of loss with respect to and arising from the ownership, use and operation of boilers, pressure vessels and machinery.

Brick Veneer Construction
Frame construction with a single course of brick as an outside covering.

Broker
An independent person or firm who acts on behalf of the insured in placing business with insurance companies.

Builders Risk Insurance
Insurance coverage on property under construction including loss to buildings or ships, including machinery and equipment, under course of construction, and materials incidental to construction.

Building Codes
Rules and regulations of governmental bodies defining standards that construction in that jurisdiction must meet.

Burglar Alarms
Devices of various types which give warning of entry into premises by unauthorized persons.

Burglary
Unlawful removal of property from premises involving visible forcible entry.

Burglary Insurance
Insurance against loss of property caused by burglars.

Business Insurance
A form of insurance to protect a business against the loss of services of a key employee or employees. Usually accident and sickness, however, life insurance may also form part of the package. Also called Partnership Insurance or Corporation Insurance.

Business Interruption Insurance
Various types of insurance against business expenses and loss of income resulting from a fire or other insured peril.

Byway
A law or ordinance dealing with matters of local or internal regulation made by a local authority or by a corporation or association.

Byway Endorsement
An endorsement explaining how a particular insurance company deals with a claim which is affected by a local byway.