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.
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Showing 24 of 65 matching terms
Terms beginning with A
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Advance payment
Claims - A partial claim payment issued before the entire claim is resolved to help address immediate covered costs.
- Also called: claim advance
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Adverse benefit determination
Health insurance - A health plan decision to deny, reduce, end, or decline payment for a requested benefit or service.
- Also called: benefit denial
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Adverse selection
General insurance - A tendency for people or businesses with above-average loss potential to seek more insurance than average-risk applicants.
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Agent
General insurance - A licensed professional who sells or services insurance policies and may represent one or more insurers.
- Also called: insurance agent
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Aggregate deductible
Business insurance - A deductible structure that limits the total deductible amount the insured pays for covered losses during a policy period.
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Aggregate excess of loss reinsurance
General insurance - Reinsurance that responds when an insurer’s aggregate losses exceed a stated retention during a defined period.
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Aggregate limit
Business insurance - The maximum a policy will pay for all covered claims during a stated policy period or other defined time.
- Also called: policy aggregate
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Aggregate limit reinstatement
Business insurance - An endorsement restoring some or all of an aggregate liability limit after it has been reduced by covered losses.
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Aggregate stop-loss
General insurance - Coverage that limits an insured’s total retained losses during a policy period after a stated aggregate threshold.
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Agreed value
Auto insurance - A vehicle value accepted by the insurer and policyholder that may be used to settle a covered total loss under a specialty policy.
- Also called: agreed amount
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Allowed amount
Health insurance - The maximum amount a health plan recognizes for a covered service before member cost sharing is calculated.
- Also called: allowed charge, negotiated rate
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Alternative dispute resolution
Claims - Processes such as mediation or arbitration used to resolve an insurance dispute without a full court trial.
- Also called: ADR
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Ambulatory surgery center
Health insurance - A facility that provides same-day surgical services without an overnight hospital stay.
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Annual benefit limit
Health insurance - A maximum amount a plan will pay for a defined benefit during a plan year, where permitted by law.
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Annual dollar limit
Health insurance - A cap on the benefits a health plan will pay in a year; federal rules restrict these limits for essential health benefits in many plans.
- Also called: annual benefit limit
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Annual notice of change
Health insurance - A yearly notice describing upcoming changes to a Medicare plan’s benefits, costs, service area, or rules.
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Annual statement
General insurance - A statutory financial report insurers file with regulators describing financial condition and operations.
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Annuitant
Life insurance - The person whose life determines annuity payments, or the person entitled to receive those payments, depending on contract terms.
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Annuity
Life insurance - A contract designed to accumulate value or provide a stream of income, subject to its guarantees, charges, and tax treatment.
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Annuity accumulation period
Life insurance - The period when money is contributed to or grows inside a deferred annuity before scheduled income payments begin.
- Also called: accumulation phase
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Annuity beneficiary
Life insurance - The person or entity designated to receive a death benefit or remaining contract value under an annuity.
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Annuity certain
Life insurance - An annuity that pays income for a fixed number of years, whether or not the annuitant lives through the full period.
- Also called: period-certain annuity
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Annuity death benefit
Life insurance - The amount payable to a beneficiary when an annuitant dies before or during the payout phase, subject to contract terms.
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Annuity exclusion ratio
Life insurance - A tax calculation that determines what portion of each annuity payment is treated as a return of investment rather than taxable income.