| term |
description |
| 401(K) PLAN |
An employer-sponsored retirement savings plan funded by employee contributions, which may or may not be matched by the employer. Federal laws allow employees to invest pretax dollars, up to a stated maximum each year. |
| 529 SAVINGS PLANS |
State-administered plans designed to encourage households to save for college education. Named after a part of the Internal Revenue tax code, these saving plans allow earnings to accumulate free of federal income tax and sometimes to be withdrawn to pay for college costs taxfree. There are two types of plans: savings and prepaid tuition. Plan assets are managed either by the states treasurer or an outside investment company. Most offer a range of investment options. |
| A-SHARE VARIABLE ANNUITY |
A form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge. |
| ACCELERATED DEATH BENEFITS |
A life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. This is in lieu of a traditional policy that pays beneficiaries after the insureds death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries. |
| ACCIDENT AND HEALTH INSURANCE |
Coverage for accidental injury, accidental death, and related health expenses. Benefits will pay for preventative services, medical expenses and catastrophic care, with limits. |
| ACCOUNT RECEIVABLES |
See Receivables |
| ACTUAL CASH VALUE |
A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. (See Replacement cost ) |
| ACTUARY |
An insurance professional skilled in the analysis, evaluation and management of statistical information. Evaluates insurance firms reserves, determines rates and rating methods, and determines other business and financial risks. |
| ADDITIONAL LIVING EXPENSES |
Extra charges covered by homeowners policies over and above the policyholders customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable. |
| ADJUSTER |
An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies. |