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Accounts Receivable: Covers money due you from customers, providing you are unable to collect as a result of direct loss or damage to records, collection expenses and re-establishment of records.


Actual Cash Value: Cost of replacing the property minus an allowance for depreciation and deductible.


Actuary:  An actuary is a person trained in assessing risk, the anticipated effect risk will have on revenue, and the rates that need to be charged for insurance polices. Actuaries usually start with a bachelor’s degree from a college and then they attend further education to increase their capability and professional ability. The work is critical to the operation of all insurance companies.


Additional Insured: Provides coverage under the client’s policy for a third party that is brought into a claim based on the client’s actions. Does not provide coverage actions for the sole negligence of the third party independent of the client.


Adjuster: Person who works as a representative for an insurance company and is responsible for evaluating losses and settling or concluding a claim. This person can also be called a claim representative.


Advertising Injury: Advertising Injury means injury rising out of an offense committed in the course of your advertising activities. Injury may arise from libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan. (Normally included as a limit in the general liability policy).


Affordable Care Act: The Patient Protection and Affordable Care Act (also known as the Affordable Care Act) is health reform legislation that was signed in to law by President Barack Obama on March 23, 2010.  The law includes many health-related provisions that began to be implemented in 2010.  The Affordable Care Act is also known as Health Care Reform.


Aftermarket Parts: Auto parts used to repair or replace a vehicle’s original parts produced by companies other than the original equipment manufacturer (OEM). Often they are less expensive than manufacturer’s replacement parts. This helps insurers control costs and keep premiums lower.


Agent: Person who sells insurance. Independent agents are self-employed and have the option to represent more than one insurance company. Captive or exclusive agents are employed by and represent only one insurance provider.


Aggregate: Aggregate generically is a term that refers to a combination of items in one mixture. Concrete which is sand, water, rocks and cement is and aggregate of the materials that is called Concrete. In self insurance aggregate refers to that portion of the policy that insures for a combination large claims. (Versus the “Specific” deductible.)


Aggressive Growth Funds: A type of mutual fund that focuses more on increasing the value of the original investment than on the price stability or income. Many aggressive growth funds invest in smaller, less established companies that have the potential for long-term growth, but that are potentially more susceptible to changing market conditions, than larger more stable companies. Aggressive Growth Funds involve more investment risk than more conservative investments.


Annuity: A contract that guarantees fixed or variable payments over time. Some investors buy annuities to provide them with a stream of income in the future.


Asset Allocation Funds: The model asset allocation fund uses three asset classes: stocks, bonds and cash. As markets fluctuate, asset allocation funds have the ability to shift weightings among these classes. In addition, some funds include other asset classes, such as real estate concerns and natural resource companies. In recent years, for diversification purposes, foreign holdings have been introduced into the mix of some funds.


Assets: The property and resources, such as cash, investments or property, of a person or corporation, or retirement plan.


Aviation/Watercraft: Insurance coverage for aviation and watercraft risks.


Balanced Funds: Balanced funds strive to keep the proportions of stocks and bonds in their portfolios stable, or at least predictable, in different market climates. Because of the general appeal of these funds as core holdings, many balance funds also restrict themselves to conventional sorts of investment instruments. Most of the stock holdings resemble the S&P 500 index, while the bond holdings often track broad indexes of investment-grade bonds.


Beneficiary: Beneficiary refers to a person or other entity that will receive property (or benefits) if an event happens. Ex. A person may name their spouse as their”beneficiary” on a life insurance policy. Should the covered spouse die, the “beneficiary” would receive the death benefit.


Benefits: Items made available to employees by employers that provide a “benefit” to the employee. Examples might be insurance for life, medical, dental and things like parking passes, subway tokens.  Benefits may be “provided” by the employer or may be “made available”. Each has specific tax and risk implications.