 |  |  |  |  |  |
 |
 |
 |
 |
 |
 |
 |
 |
Insurance Glossary A - B
A
Accelerated Benefits - Riders attached to life insurance policies which allow death benefits to be used to
cover nursing or convalescent home expenses.
Accident - An unplanned, unforeseen event which occurs suddenly and at an unspecified place.
Accident Insurance - A type of insurance that protects the insured against loss due to accidental bodily
injury.
Accidental Bodily Injury - Unplanned, unforeseen traumatic injury to the body
Accidental Death and Dismemberment (AD&D) - An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses two limbs due to an
accident.
Accidental Death Benefits - A policy rider that states that the cause of death will be analyzed to determine if
it complies with the policy description of accidental death.
Accidental Death Insurance – An insurance policy that provides payment if the insured’s death is the result
of an accident.
Accumulation Period - The time over which the annuitant makes payments or investments in an annuity, and
when those payments earn interest tax deferred.
Activities of Daily Living (ADLs) - Activities individuals must do every day such as moving about, getting
dressed, eating, bathing, etc.
Actual Cash Value (ACV) - The required amount to pay damages or for property loss, which is calculated
based on the property's current replacement value minus depreciation.
Actual Charge - The amount a physician or supplier actually bills for a particular service or supply.
Actuary - A person trained in the technical aspects of insurance and related fields, particularly in the
mathematics of insurance; a person who, on behalf of the company, determines the mathematical probability
of loss.
Adhesion - A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option
is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
Adjustable Life - Life insurance which permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
Adjuster - A representative of an insurance company who investigates and acts on the behalf of the company
to obtain agreements for the amount of the insurance claim.
Administrator - An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a
deceased person.
Admitted (Authorized) Insurer - An insurance company authorized and licensed to transact business in a
particular state.
Adult Day Care - A program for impaired adults that attempts to meet their health, social, and functional
needs in a setting away from their homes.
Agency - An insurance sales office or company.
Agent - An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer.
Ancillary - Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and lab
work, but not hospital room and board expenses.
Annual Statement - A detailed financial report that an insurance company must submit every year to the
insurance department of state(s) in which it conducts business.
Annuity - A contract that provides income for a specified period of years, or for life.
Apparent Authority - The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
Applicant - A person making application for, or offering him/herself or another to be insured under an
insurance contract.
Application - A document that provides information for underwriting purposes. After the policy is issued, any
unanswered questions are considered waived by the insurer.
Approved Amount - The amount Medicare determines to be reasonable for a service that is covered under
part B of Medicare.
Assignment (Life) - The transfer of ownership rights of a life insurance policy from one person to another.
Assignment (Health) - A claim to a provider or medical supplier to receive payments directly from Medicare.
Attained Age - The age of the insured at a determined date.
Attending Physician's Statement (APS) - A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer - An insurance company authorized and licensed to transact business in a
particular state.
Avoidance - A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to
avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
B
Back-End Load - a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life
insurance policy
Basic Hospital Expense Insurance - Coverage that provides benefits for room, board and miscellaneous
hospital expenses for a certain number of days during a hospital stay.
Basic Illustration - A ledger or proposal used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements.
Basic Medical Expense Insurance - Coverage for doctor visits, x-rays, lab tests, and emergency room
visits; benefits, however, are limited to specified dollar amounts.
Beneficiary - The person who receives the proceeds from the policy when the insured dies.
Benefit Period - The length of time over which the insurance benefits will be paid for each illness, disability or
hospital stay.
Binder (Binding Receipt) - A temporary contract that puts an insurance policy into force before the premium
has been paid.
Broker - An individual who represents an insured in the process of purchasing and negotiating a contract of
insurance.
Buy-Sell Agreement - A legal contract that determines what will be done with a business in the event that an
owner dies or becomes disabled.
Buyer's Guide - A booklet that describes insurance policies and concepts, and provides general information
to help an applicant make an informed decision.
A
Accelerated Benefits - Riders attached to life insurance policies which allow death benefits to be used to
cover nursing or convalescent home expenses.
Accident - An unplanned, unforeseen event which occurs suddenly and at an unspecified place.
Accident Insurance - A type of insurance that protects the insured against loss due to accidental bodily
injury.
Accidental Bodily Injury - Unplanned, unforeseen traumatic injury to the body
Accidental Death and Dismemberment (AD&D) - An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses two limbs due to an
accident.
Accidental Death Benefits - A policy rider that states that the cause of death will be analyzed to determine if
it complies with the policy description of accidental death.
Accidental Death Insurance – An insurance policy that provides payment if the insured’s death is the result
of an accident.
Accumulation Period - The time over which the annuitant makes payments or investments in an annuity, and
when those payments earn interest tax deferred.
Activities of Daily Living (ADLs) - Activities individuals must do every day such as moving about, getting
dressed, eating, bathing, etc.
Actual Cash Value (ACV) - The required amount to pay damages or for property loss, which is calculated
based on the property's current replacement value minus depreciation.
Actual Charge - The amount a physician or supplier actually bills for a particular service or supply.
Actuary - A person trained in the technical aspects of insurance and related fields, particularly in the
mathematics of insurance; a person who, on behalf of the company, determines the mathematical probability
of loss.
Adhesion - A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option
is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
Adjustable Life - Life insurance which permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
Adjuster - A representative of an insurance company who investigates and acts on the behalf of the company
to obtain agreements for the amount of the insurance claim.
Administrator - An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a
deceased person.
Admitted (Authorized) Insurer - An insurance company authorized and licensed to transact business in a
particular state.
Adult Day Care - A program for impaired adults that attempts to meet their health, social, and functional
needs in a setting away from their homes.
Agency - An insurance sales office or company.
Agent - An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer.
Ancillary - Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and lab
work, but not hospital room and board expenses.
Annual Statement - A detailed financial report that an insurance company must submit every year to the
insurance department of state(s) in which it conducts business.
Annuity - A contract that provides income for a specified period of years, or for life.
Apparent Authority - The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
Applicant - A person making application for, or offering him/herself or another to be insured under an
insurance contract.
Application - A document that provides information for underwriting purposes. After the policy is issued, any
unanswered questions are considered waived by the insurer.
Approved Amount - The amount Medicare determines to be reasonable for a service that is covered under
part B of Medicare.
Assignment (Life) - The transfer of ownership rights of a life insurance policy from one person to another.
Assignment (Health) - A claim to a provider or medical supplier to receive payments directly from Medicare.
Attained Age - The age of the insured at a determined date.
Attending Physician's Statement (APS) - A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer - An insurance company authorized and licensed to transact business in a
particular state.
Avoidance - A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to
avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
B
Back-End Load - a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life
insurance policy
Basic Hospital Expense Insurance - Coverage that provides benefits for room, board and miscellaneous
hospital expenses for a certain number of days during a hospital stay.
Basic Illustration - A ledger or proposal used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements.
Basic Medical Expense Insurance - Coverage for doctor visits, x-rays, lab tests, and emergency room
visits; benefits, however, are limited to specified dollar amounts.
Beneficiary - The person who receives the proceeds from the policy when the insured dies.
Benefit Period - The length of time over which the insurance benefits will be paid for each illness, disability or
hospital stay.
Binder (Binding Receipt) - A temporary contract that puts an insurance policy into force before the premium
has been paid.
Broker - An individual who represents an insured in the process of purchasing and negotiating a contract of
insurance.
Buy-Sell Agreement - A legal contract that determines what will be done with a business in the event that an
owner dies or becomes disabled.
Buyer's Guide - A booklet that describes insurance policies and concepts, and provides general information
to help an applicant make an informed decision.
| Trout Insurance is a full line insurance agency located in Asheville, NC. Trout Insurance offers life, health, disability, Medicare supplement, long term care insurance home and auto insurance for individuals as well as college funding and retirement planning. Christopher Smith, Dave Trout, Jan Trout and Ralph Redpath are independent insurance agents with Trout Insurance. Christopher Smith specializes in group health insurance, employee benefits, insurance needs for business owners, key person disability insurance, disability buy out insurance, individual life insurance, short term health insurance, disability insurance, long term care insurance, group long term care insurance and critical illness insurance. Dave Trout specializes in life and disability insurance, Medicare supplement insurance, retirement planning for individuals and businesses, commercial business insurance and college funding. Jan Trout specializes in individual health insurance. Ralph Redpath specializes in home and auto coverage. Web site design by Christopher Smith. Agency photo by Jason Sanford. |
