Accelerated benefits
This feature allows access to a portion of a life insurance policy's death benefit, or payout, usually in cases of terminal illness or catastrophic circumstances.

Accident
An unforeseen situation that may result in damage or injury.

Accident forgiveness
A program that doesn't require an accident surcharge or loss of discount for the customer following an at-fault accident.

Accidental death coverage
An added rider to some life insurance policies that pays upon the named insured's death only if that death is caused by an accident. If the named insured dies from natural causes, there is no coverage under this rider.

Actual cash value
The amount equal to the depreciated value of the replacement cost for a person's property in the event of a covered loss. For example, a fire damaged a person's TV and they need a new one. Five years ago they paid $2,000 for that TV, but today a similar TV costs $2,500. Their insurance provider determines a TV's useful life is 10 years, which means the damaged TV had 50% (five years) of its life remaining. The actual cash value is the replacement cost ($2,500) multiplied by the useful life remaining (50%), which equals $1,250.

Actuary
A professional who analyzes historical data, statistics and other facts to estimate future risk.

Additional insured
"A person who is jointly insured on another person's policy. They'll be covered by the policy and can file claims themselves. For example, in auto insurance, a person could add one of their parents to their policy as co-owner of the vehicle if the parent doesn't live with them or drive the vehicle regularly. Similarly, with homeowners insurance, if a parent is a co-signer on a mortgage and moves into their child's home, the child can add their parent as an additional insured due to their financial stake and usage of the property.

See ""Additional interest insured""."

Additional interest insured
A person or entity who is protected by another person's insurance.

Additional living expenses coverage
A type of protection in a homeowners insurance policy that helps pay for reasonable extra costs that arise when a policyholder is displaced because of a covered peril.

Adjuster
An insurance professional who investigates coverage and the facts of a loss to determine the compensation an insurance company pays its insured, or a third-party claimant. Also can be known as a field adjuster, an independent adjuster or a claims examiner.

Agent
A representative of one or more insurance companies who sells insurance policies for a commission. They are licensed in the state where they work and must comply with all governing statutes and regulations.

All other perils (not enumerated)
All causes of loss not listed on an insurance policy.

All-terrain vehicle (ATV) insurance
ATV insurance covers your ATV if it is involved in a collision. An ATV is a three, four or six wheel motor vehicle design for off-road use.

Amendment
A change to an insurance policy contract.

Annual percentage rate (APR)
The amount of interest charged each year for borrowing or achieved through investment expressed as a single percentage. The APR is the actual yearly cost of the amount financed. For example, a credit card company may claim that it only charges 2% per month, but that translates to an APR of 24% (2% at 12 months).

Annual percentage yield (APY)
The total yearly rate of return on an investment, accounting for the compounding of interest.

Annuity
A type of insurance where contributions and earnings are tax-deferred. There are several types of annuities, including fixed, variable, immediate, deferred, indexed and equity linked.

Anti-lock braking system (ABS)
In car insurance, anti-lock braking system (ABS) refers to an automated vehicle braking system that helps prevent a vehicle's wheels from locking up in order to help improve driver control. ABS automatically pumps the brake system to avoid wheel lockup. Most recent-model commercial and personal autos come equipped with ABS.

Appraisal
A process by which an insurance carrier and a homeowner arrive at an agreed value for a loss covered by a homeowners insurance policy. In auto insurance, an appraisal is a process by which a body shop employee or auto damage appraiser estimates the cost to repair a damaged vehicle.

Asset
Any item that has financial value. This can include cars, houses and other personal belongings, like computers or jewelry. They can also be intangible items, such as patents or copyrights you may own.

Asset allocation
The strategy of investing your money among several different areas, such as stocks, bonds and cash instruments, to balance risk and return in your portfolio based on your goals, risk tolerance and time horizon. Asset allocation programs do not assure a profit or protect against loss in a declining market.

Asset class
A set of securities that are standardized and act similarly in the financial marketplace. The main financial asset classes are stocks, bonds and money market funds. However, classes can include real property (such as buildings and land) and personal property (such as office furnishings).

Assured
The policyholder and/or the individual(s) insured on a policy. Sometimes used in place of "insured" or "policyholder."

At-fault
In car insurance, at-fault refers to the driver who caused an accident, either fully or partially.

Auto loan calculator
An automated tool that helps estimate auto loan payments. Some companies, such as financial and consumer credit institutions, offer auto loan calculators on their websites. Consumers can estimate their car payments by entering variables such as vehicle cost, interest rate and the length of the loan.

Auto safety ratings
In car insurance, auto safety ratings refer to an analysis of how vehicles stand up under various types of crash testing. The National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) are two organizations that conduct and track vehicle crash-test data and provide vehicle safety ratings that detail the ability of vehicles to withstand various types of collisions.

Automatic deposit
In claim payments, this refers to a regularly scheduled electronic deposit to an account. Also known as direct deposit.

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