Reference guide
Insurance Glossary
Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.
Find an insurance term
Showing 24 of 65 matching terms
Terms beginning with A
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Absolute liability
General insurance - Legal responsibility that can apply without proving negligence when the law imposes liability for a particular activity or condition.
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ACA marketplace
Health insurance - A federal or state service where eligible consumers can compare and enroll in Affordable Care Act health plans.
- Also called: health insurance marketplace, Obamacare marketplace
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Accelerated death benefit
Life insurance - A policy benefit that may pay part of the death benefit early when the insured meets qualifying illness or other policy conditions.
- Also called: living benefit
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Accidental death and dismemberment insurance
Life insurance - Coverage that pays stated benefits for a covered accidental death or qualifying accidental loss of limb, sight, speech, or hearing.
- Also called: AD&D insurance
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Accidental death benefit
Life insurance - An added benefit that may pay an additional amount when a covered death results from an accident as defined by the policy.
- Also called: accidental death rider
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Accident forgiveness
Auto insurance - A feature some auto insurers offer that may keep a qualifying accident from affecting a policy’s rating.
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Accident surcharge
Auto insurance - An increase in auto insurance premium that may follow an at-fault accident or other rating event under an insurer’s rules.
- Also called: accident rating surcharge
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Accident year
General insurance - A reporting period grouping losses by the year in which the accident or loss occurred.
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Actual cash value
General insurance - The value of covered property after considering age, wear, and depreciation at the time of a loss.
- Also called: ACV
- Actual cash value vs. replacement cost
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Actual cash value settlement
Claims - A claim settlement based on replacement cost less applicable depreciation, subject to the policy terms.
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Actual loss sustained
Home insurance - The amount of a covered financial loss actually incurred, subject to the policy’s limits and conditions.
- Also called: ALS
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ADAS calibration
Auto insurance - Recalibration of vehicle cameras and sensors after certain repairs, which may be part of a covered auto glass or collision claim.
- Also called: advanced driver assistance system calibration, sensor recalibration
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Additional amount of insurance
Home insurance - Policy wording that may provide an amount above a stated coverage limit for a specified covered loss or expense.
- Also called: additional insurance amount
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Additional insured
Business insurance - A person or organization added to another party’s policy for specified protection under that policy.
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Additional insured status
Business insurance - Policy status extending specified liability protection to a person or organization other than the named insured.
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Additional living expense
Home insurance - Coverage that may help with extra living costs when a covered loss makes a home temporarily unlivable.
- Also called: ALE, loss of use
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Additional living expense limit
Auto insurance - The maximum amount a homeowners policy will pay for covered increases in living costs after a covered loss.
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Adjuster
Claims - A claims professional who investigates a reported loss and helps evaluate what the policy may cover.
- Also called: claims adjuster
- How to file an insurance claim
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Administrative license suspension
Auto insurance - A driver license suspension for a non-driving administrative reason, which may affect auto insurance eligibility.
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Admitted assets
Claims - Insurer assets that regulators permit the company to count when measuring financial condition and policyholder protection.
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Admitted insurer
General insurance - An insurer licensed by a state to sell specified insurance products and subject to that state’s insurance regulation.
- Also called: authorized insurer
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Advance coverage decision
Health insurance - A health plan decision made before care is received about whether a proposed service meets coverage requirements.
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Advanced driver assistance system
Auto insurance - Vehicle technology designed to help prevent or reduce crashes, often requiring calibration after certain repairs.