Insurance Terms A

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1. ACCELERATED DEATH BENEFITS
   A life insurance policy add-on that allows for the early payment of some portion of the policy's face amount, should the insured become terminally ill, need extreme medical intervention, or if they must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries.
2. ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) BENEFIT
   Insurance that pays a stated amount to the insured or the insured's beneficiary. This stated amount is payable if the insured suffers death by accidental means, if the insured accidentally severs a limb above the wrist or ankle joints or totally and irreversibly loses his/her eyesight.
3. ACCIDENTAL DEATH BENEFIT (ADB)
   A life insurance policy add-on that provides for an additional amount of money, related to the base amount of the policy, to be paid when the insured suffers death by accidental means.
4. ACTUAL CASH VALUE (ACV)
   The current replacement cost of damaged property, minus depreciation from wear and tear or obsolescence.
5. ADDITIONAL LIVING EXPENSES
   Insurance coverage for extra necessary living costs, over and above the policyholder's customary living expenses. These costs are incurred during the time it takes to repair or replace insured property that has been destroyed or damaged by an insured peril; such as fire.
6. ADJUSTER
   An individual employed by a property/casualty insurer to determine the amount and cause of a loss, the insurance company's liability for the loss and satisfactory agreement on such from the parties involved. A public adjuster negotiates with insurers on behalf of policyholders, and receives a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.
7. AGENT
   A person licensed by the state insurance authority to sell insurance products.
8. APPRAISAL
   A survey to estimate a property's insurable value, or the amount of a loss or damage to insured property.
9. ARBITRATION
   The process of settling differences relating to loss under an insurance policy in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a disinterested third party.
10. ARSON
    The deliberate setting of a fire.
11. ASSIGNED RISK PLANS
    A plan that will insure risks for auto insurance that are not able to obtain insurance in the market. All insurers selling auto insurance in the state are assigned these drivers to insure, based on the amount of insurance they sell in the regular market.
12. ASSIGNMENT
    An agreement under which one party, the assignor, transfers some or all ownership rights or interests in an insurance policy, to another party, the assignee.
13. AUTO INSURANCE POLICY
    This policy provides coverage for owned/non-owned vehicles, including liability, uninsured motorists, damage to the vehicle, and medical payments.