GLOSSARY

401(k) Plan

An employer-sponsored defined contribution retirement plan that provides certain tax benefits to both employees and employers.

Read More »

Abandonment

The giving up of property by the insured to the insurance company in order to collect the value of the property rather than restoring or

Read More »

Accident

An unplanned event, definite as to time and place, that results in injury or damage to a person or property.

Read More »

Accounting

Process to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time.

Read More »

Accounting System

Organized set of accounting methods, procedures, and controls to collect, record, classify, and present accurate and timely financial data for use in management decision-making.

Read More »

Accumulation Phase

The period during which deposits are made and investment earnings accrue between purchase of a deferred annuity and the distribution of funds.

Read More »

Accumulation Value

During the accumulation period of a deferred annuity, the amount paid for the annuity, plus interest earned, less the amount of any withdrawals and fees.

Read More »

Acquisition

One organization takes over another organization and is established as the new owner with the ownership interests continuing unchanged.

Read More »

Active Retention

Planned acceptance of losses to be financed internally through the use of deductibles on insurance policies, loss sensitive insurance plans, and deliberate non-insurance. See Passive

Read More »

Actuary

An individual who calculates premium rates, reserves, dividends, and other important statistics.

Read More »

ACV

Abbreviation for Actual Cash ValueReplacement cost less an allowance for insurance depreciation, wear and tear, or obsolescence. https://www.youtube.com/watch?v=IOwFExvdr-c… More. Defined as replacement cost less an

Read More »

ADL

Person’s ability to perform such activities as bathing, dressing, toileting, maintaining continence, transferring, and eating.

Read More »

Admitted Assets

Assets whose value is included in the annual statement of an insurance company to insurance regulators; include cash and short-term deposits readily convertible into cash,

Read More »