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accelerated death benefit

A life insurance provision/rider that allows the insured to receive a percentage of the policy's/certificate's face amount before the insured's death - usually triggered by long-term, catastrophic or terminal illness.

accidental death and dismemberment (AD&D) coverage:

A health insurance plan paying specified sums in case of accidental death or dismemberment of covered person(s).

accidental death benefit

A feature added to a life insurance policy that pays the beneficiary an additional benefit if the insured dies from a covered accident.

activities of daily living (ADLs)

Activities - such as eating, bathing, toileting, transferring, dressing, and continence - that demonstrate an insured's need for long-term care and may trigger payment of benefits in a long-term-care insurance policy, if a specified number of ADLs cannot be performed by the insured.

actual cash value

In a homeowners insurance policy, this applies to the replacement value of lost or damaged property at the time of the loss minus an allowance for depreciation. To receive the actual cash value, the insured may be required to have a certain amount of coverage.

additional living expense insurance

Coverage to pay for some added living expenses an insured may have when the insured can't live in his/her home because of damage covered by his/her homeowners insurance policy. For example, it could pay limited motel and restaurant expenses.

adverse selection

The tendency of people who know that they have a greater-than-average chance of loss to seek insurance or more than an average amount of insurance.

alternate delivery system

Health services that are more cost-effective than inpatient, acute care hospitals, such as skilled and intermediary nursing facilities, hospice programs and in-home services.

ambulatory care

Medical services provided on an outpatient (non-hospitalized) basis. Services may include diagnosis, treatment, surgery, and rehabilitation.

annual-premium annuity

An annuity whose purchase price is paid in annual installments.

annuitant:

An individual receiving benefits under an annuity.

annuity

A contract that provides for the depletion of a sum of money through a series of payments over a specified period of time.

annuity certain

An annuity that is payable for a specified period of time, without regard to the life or death of the annuitant.

antiselection

See adverse selection.

any occupation for which reasonably suited

A definition of disability in which an insured is considered to be disabled if unable to perform the duties of any occupation suitable to his/her experience and educational background (in contrast to "own occupation" definition of disability).

assign

The transfer of one's benefits or policy/certificate rights to another party. For example: to use life insurance policy benefits as collateral for a loan. This can also apply to transferring ownership as well.

assignee

The party to whom the rights of the owner under a policy/certificate are transferred.

assignment:

A provision that allows the transfer of rights or benefits under a policy/certificate from one person to another, usually by means of a written document.

assignor

The party granting the transfer of the owner's rights to the assignee.

association group

A group formed from members of a trade or professional association with insurance under one master insurance contract.

automatic premium loan provision

A life insurance provision under which cash values are automatically used to pay premiums if regular premiums are not paid when due.