Appraisal – an estimate of value.
Arbitration – a binding dispute resolution tactic whereby a conciliator with no interest in the outcome intercedes.
Assessed Value – estimated value for real or personal property established by a taxing entity
Asset – probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. An asset has three essential characteristics: It embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows; A particular entity can obtain the benefit and control others’ access to it; and The transaction or other event-giving rise to the entity’s right to or control of the benefit has already occurred.
Asset Risk – in the risk-based capital formula, risk assigned to the company’s assets.
Assigned Risk – A governmental pool established to write business declined by carriers in the standard insurance market.
Assisted Living Care – a policy or rider that provides coverage only while a policyholder is confined to an assisted living facility and meets the policy requirements for coverage.
Assumed Reinsurance – the assumption of risk from another insurance entity within a reinsurance agreement or treaty.
Authorized Company – an insurer licensed or admitted to do business in a particular state.
Authorized Control Level Risk Based Capital – theoretical amount of capital plus surplus an insurance company should maintain.
Authorized Reinsurance – reinsurance placed with a reinsurer who is licensed or otherwise allowed to conduct reinsurance within a state.
Auto Liability – coverage that protects against financial loss because of legal liability for motor vehicle related injuries (bodily injury and medical payments) or damage to the property of others caused by accidents arising out of ownership, maintenance or use of a motor vehicle (including recreational vehicles such as motor homes). Commercial is defined as all motor vehicle policies that include vehicles that are used primarily in connection with business, commercial establishments, activity, employment, or activities carried on for gain or profit. No Fault is defined by the state concerned.
Auto Physical Damage – motor vehicle insurance coverage (including collision, vandalism, fire and theft) that insures against material damage to the insured’s vehicle. Commercial is defined as all motor vehicle policies that include vehicles that are used in connection with business, commercial establishments, activity, employment, or activities carried on for gain or profit.
Automobile Liability Insurance – coverage for bodily injury and property damage incurred through ownership or operation of a vehicle.