Glossary of General Insurance Terms
2007 The Receivable Management Corporation (RMS)
Aid to the Aged, Blind and Disabled. See Public Assistance.
See Alliance of American Insurers.
See American Association of Insurance Services.
Aid to the Blind. See Public Assistance.
Aid to Families with Dependent Children. See Public Assistance.
See American Insurance Association.
Aid to the Permanently and Totally Disabled. See Public Assistance.
See American Risk and Insurance Association.
See Associate in Risk Management.
"A" (or Judgment) Rates.
Rates that are not backed up by loss experience statistics. They are based on the judgment of theunderwriter on an individual risk basis.
Assignment by a policy owner of all control of and rights in the policy to a third party.
An unplanned event, unexpected and undesigned, which occurs suddenly and at a definite place. Seealso Occurrence.
The rate of the occurrence of accidents, often expressed in terms of the number of accidents over aperiod of time. It is one method used for measuring the effectiveness of loss prevention services. Contrastwith Accident Severity.
See Loss Prevention Service.
A measure of the severity or seriousness of losses, rather than the number of losses. It is measured interms of time lost from work rather than the number of individual accidents. It is another way of measuringthe effectiveness of loss prevention services. Contrast with Accident Frequency.
Accident Year Experience.
Measures premiums and losses relating to accidents which occurred during a 12-month period.
Accidental Bodily Injury.
An injury sustained accidentally. Only the result need be accidental. Contrast with Accidental Means.
Unexpected or undesigned cause of an accidental bodily injury. Under a definition of accidental means,the mishap itself must be accidental, not just the resulting injury. An example would be an individualchopping wood: If the axe slipped out of his hand and cut his foot, it would have been accidental means.However, if his finger got in the way of the axe, it would not have been.
Business accepted from an agent or broker which would normally be rejected according to strictunderwriting standards but which is accepted because of the overall profitability of the agent's orcustomer's other business. As an example, an insurer might accept coverage on property that would not