Insurance Terms: A

by Anna Glendenning | More from this Blogger

30 Mar 2007 07:39 PM

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• AAA Insurance: Help on the Road and Beyond, AAA is well known for their roadside services including towing as well as their trip planning tools. Today AAA offers a wide range of insurance products.
• Accident: Is an unforeseen, unexpected, or unintended event.
• Accidental Bodily Injury: Is the physical injury caused to someone resulting from an accident.
• Accidental Death Benefit: For a life insurance policies this is an additional death benefit paid to the beneficiary, when the death happens because of an accident. There are usually exclusions including time and age limits.
• Act of God: Is a Peril beyond the human control and not caused by humans. Such things as earthquakes, lightning, or windstorms, are Acts of God. When an Act of God causes damage the insured can not possibly be responsible, however the insured may have a responsibility to mitigate the damages.
• Actual Cash Value, ACV: is the specific and actual cost to replace personal property that has been damaged or destroyed with similar property, less the amount of depreciation. For example, a 10-year-old television would not be replaced at current full value because of it's depreciated value.
• Actuary: is a specialist professionally trained in the technical aspects of insurance and related fields. An Actuary uses complex mathematical methods, computer programs and data, to analyze losses and other statistics. The Actuary develops a system to determine premiums.
• Adjuster: An adjuster is a representative of the insurance company who's job is to determine the extent of the insurance companies liability for an insured and covered loss. When an insured suffers a loss they will submit a claim and the adjuster works with the insured to determine what the insurance company will and will not cover and how much.
• Agent: An insurance agent is a person who sells and services insurance policies. There are two basic classifications of Insurance Agents:

  1.) An Independent agent represents at least two insurance companies and services clients by researching the insurance market for the best premium price and the insurance coverage. Agent's are generally paid a commission which is a percentage of each policy issued or renewed. 2.) A Direct or career agent represents one company and only sells that companies policies. These agents are also paid a commission for new policies and renewals.

• Aggregate Limit: Is generally about liability insurance and is the amount of insurance coverage a policy holder has under the insurance policy contract. Generally the Aggregate limit applies for a stated period of time, or contract period, and is the limit of the policy regardless of how many separate accidents might take place.
• All-Terrain Vehicle (ATV) Insurance Anyone with an ATV needs insurance to protect against the unique dangers faced while enjoying time on the back of an ATV.
• Amendment: Is a document that changes the original provisions of an insurance contract Attached to the policy and signed by the insurance company and the individual policyholder.
• Application: Is the initial and first statement of facts. This is the personal information provided to the insurance company by a person when applying for a new insurance policy. Information is collected and in some cases an insurance policy is bound for a specific period of time. The Insurance company uses this time to double check all the application information and decide if the risk outlined by the applicant is an acceptable risk for the insurance company and the underwriters to take.
• Appraisal: An appraisal is a scientific or educated survey done in order to determine a personal property's insurable value.
• Appreciation: Is the amount by which personal property has increased in value based on any factors that add to the value.
• Approval: Is the legal acceptance from an insurance company of risks as outlined in the insurance application, or the acceptance of a specific request from an applicant or policyholder for new insurance, reinstatement of a terminated policy, a policy loan, or other request.
• Arbitration: is the procedure in which an insurance company and the insured policy holder agree to settle a claim dispute by accepting a decision made by an uninvolved third party.
• Assets: are All the personal property and income resources of a business or person.
• Attachment: Is a rider, endorsement, or any other modification made to an insurance policy that changes, broadens, restricts, or clarifies the basic insurance coverage provided in the policy itself.

AUTO INSURANCE POLICYThere are basically five different types of coverages. Some states may require some insurance by law and others may be optional. They are:

• Bodily injury liability, for injuries the policyholder causes to someone else. And Property Damage liability, for the damages the insurance policyholder causes to another person's property.
• Medical payments or Personal Injury Protection (PIP) is for the medical treatment of injuries to the driver and passengers of the insurance policyholder's car.
• Collision: coverage for the damage to the insurance policyholder's car from an at fault collision.
• Comprehensive: covers the insurance policyholder's car for damages not involving a collision with another car. This usually includes fire, explosions, earthquakes, floods, and theft.
• Uninsured and Underinsured motorists coverage: covers the costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance
• There are more Blogs about Auto insurance in the Auto Category of the Insurance Blogs.

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Glossary of Insurance Terms:

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Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase.

Learn more about Anna Glendenning

Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork.

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