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APPORTIONMENT

APPORTIONMENT - The dividing of a loss proportionately among two or more insurers that cover the same loss.

APPRAISAL

APPRAISAL - A survey to determine a property‘s insurable value, or the amount of a loss.

ARBITRATION

ARBITRATION - Procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party.

ARSON

ARSON - The deliberate setting of a fire.

ASSET-BACKED SECURITIES

ASSET-BACKED SECURITIES - Bonds that represent pools of loans of similar types, duration and interest rates. Almost any loan with regular repayments of principal and interest can be securitized, from auto loans and equipment leases to credit card receivables and mortgages.

ASSETS

ASSETS - Property owned, in this case by an insurance company, including stocks, bonds and real estate. Insurance accounting is concerned with solvency and the ability to pay claims. State insurance laws therefore require a conservative valuation of assets, prohibiting insurance companies from listing assets on their balance sheets whose values are uncertain, such as furniture, fixtures, debit balances and accounts receivable that are more than 90 days past due. (See Admitted assets )

ASSIGNED RISK PLANS

ASSIGNED RISK PLANS - Facilities through which drivers can obtain auto insurance if they are unable to buy it in the regular or voluntary market. These are the most well-known type of residual auto insurance market, which exist in every state. In an assigned risk plan, all insurers selling auto insurance in the state are assigned these drivers to insure, based on the amount of insurance they sell in the regular market. (See Residual market )

AUTO INSURANCE POLICY

AUTO INSURANCE POLICY - There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

  1. Bodily injury liability, for injuries the policyholder causes to someone else.
  2. Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder‘s car.
  3. Property damage liability, for damage the policyholder causes to someone else‘s property.
  4. Collision, for damage to the policyholder‘s car from a collision.
  5. Comprehensive, for damage to the policyholder‘s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.
  6. Uninsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

AUTO INSURANCE PREMIUM

AUTO INSURANCE PREMIUM - The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft and other losses. Prices vary from company to company, as with any product or service. Premiums also vary depending on the amount and type of coverage purchased; the make and model of the car; and the insured‘s driving record, years of driving and the number of miles the car is driven per year. Other factors taken into account include the driver‘s age and gender, where the car is most likely to be driven and the times of day

AVIATION INSURANCE

AVIATION INSURANCE - Commercial airlines hold property insurance on airplanes and liability insurance for negligent acts that result in injury or property damage to passengers or others. Damage is covered on the ground and in the air. The policy limits the geographical area and individual pilots covered.

Accountable Care Organization (ACO)**

These organizations coordinate patient care and provide the full range of health care services for patients. The health reform law provides incentives for providers who join together to form such organizations and who agree to be accountable for the quality, cost, and overall care of Medicare beneficiaries who are enrolled in the traditional fee-for-service program who are assigned to the ACO.

Annual Benefit Limit**

In the past, some insurance plans have placed a limit on the dollar amount of claims they will pay in a given year for an individual. Beginning in 2010, annual benefit limits on certain \essential health benefits\ are restricted on a graduated basis, and annual limits will eventually be prohibited in 2014.

Accountable Care Organization (ACO)**

These organizations coordinate patient care and provide the full range of health care services for patients. The health reform law provides incentives for providers who join together to form such organizations and who agree to be accountable for the quality, cost, and overall care of Medicare beneficiaries who are enrolled in the traditional fee-for-service program who are assigned to the ACO.

Annual Benefit Limit**

In the past, some insurance plans have placed a limit on the dollar amount of claims they will pay in a given year for an individual. Beginning in 2010, annual benefit limits on certain \essential health benefits\ are restricted on a graduated basis, and annual limits will eventually be prohibited in 2014.