ABI
Association of British Insurers
Acceptance letter
An offer of life assurance, setting out the terms.
Access To Medical Records Act 1988
The terms of this Act require an insurance company to obtain prior written
consent from an individual before approaching any medical practitioner
for a medical report pertaining to them. The individual has certain
other rights including the right (subject to some restrictions) to see
any report before it is submitted by the doctor.
Accidental Death Benefit
A provision that may be added to a life insurance policy which provides
payment of an additional benefit in the case of death resulting from
an accident.
Accidental Death and Dismemberment
Loss of life or limbs through accident.
Insurance against such eventualities is generally available.
Act of God
An accident or event which happens independently of human intervention
and due to natural causes such as storm earthquake etc. which no human
foresight can provide against. Suggesting that an event was an "act
of God" may be a defence in English law against a claim for liability
since it may be held that it could not have been foreseen or safeguarded
against.
Actively at Work
A clause in a group insurance policy that requires a new member or one
with an increase in cover, to be at work (or on holiday i.e. not absent
due to sickness, industrial action, etc.) on the day of joining/day
of increase.
Activities of Daily
Living Everyday living functions and activities performed by individuals
without assistance. These functions include mobility, dressing, personal
hygiene and eating. The inability to undertake these activities may
be used in some circumstances to define disability in insurance contracts.
Actuary
A professional trained in the technical aspects of insurance and its
related fields, particularly in the mathematics of insurance, for example,
the calculation of premiums and reserves. An actuary will use complex
mathematical methods, often with the aid of computers, to provide analysis
of claims data and other statistics. In certain circumstances insurance
companies, pension schemes etc. are required to have documents, calculations
etc. certified by an actuary. In this and other legal contexts the word
means a qualified Fellow of the Institute or Faculty of Actuaries.
ADD
Accidental Death and Dismemberment
ADLs
Activities of daily living.
Advance Payment
Pay beforehand; up front.
Advance Underwriting
Describes a system used for underwriting members of some group schemes.
Once an underwritten member is accepted for insurance at 'ordinary rates',
they may increase their cover by a predetermined percentage in any year
without the need for further underwriting.
Agent
Someone who acts on behalf of another. Traditionally, insurance company
salesmen have often been called agents. This has led to a certain amount
of confusion since in some situations they are acting on behalf of the
client and at other times they are acting on behalf of the insurance
company: the distinction is not always clear.
All Risks
Extension of the cover provided by household insurance to damage, theft
if outside the home, etc. in respect of individual high value items.
AMRA
Access To Medical Records Act 1988.
Annuitant
The person entitled to receive payments from an annuity contract.
Annuity
A series of payments, possibly subject to increases, made at specified
intervals until a particular event occurs. Most commonly an annuity
will cease after a specified period or upon the death of the annuitant.
An annuity is most commonly purchased by the accrued value of a pension
fund, in order to secure pension benefits in retirement.
Annuity Certain
A contract that provides payments for a specified number of years, regardless
of life or death of the annuitant
Arbitration
A means of arriving at an acceptable agreement between two disputing
parties. An independent person or body hears the arguments of both parties
and makes a decision that is then binding on all concerned. Often conducted
by members of the Institute of Arbitrators.
Association of British Insurers
An association representing some 450 insurance companies which account
for over 95% of the business transacted by UK insurance companies. Is
the forum through which UK insurance companies collectively liaise with
Government Departments and other bodies. Brings insurance companies
together to set industry standards and codes of practice.
Aviation Hazard
The extra hazard of death or injury resulting from participation in
aeronautics, usually as other than a fare-paying passenger in licensed
aircraft. For insurance, this often requires an extra premium or the
exclusion of certain risks.
