Abandonment and salvage is a term that refers to one party's relinquishment of an asset and another party's subsequent claim to the asset.
An abandonment clause is a provision in an insurance contract that ensures full compensation in the event of abandonment.
An accelerated death benefit is a portion of a life insurance policy that allows policyholders to receive their death benefits before they actually die.
Accident and health benefits are a package of benefits offered by companies to employees and their families covering illness and providing income benefits in the event of accidental death or injury.
Accidental death and dismemberment insurance (AD&D) is coverage for accidental death or injury to the insured. “Dismemberment” usually covers the loss of a limb, paralysis, or the loss of hearing
An actuary is a person who evaluates the likelihood of certain events and creates plans to deal with those events.
Adverse selection refers to an insurance company's coverage of life insurance applicants whose risk as policyholders, due to their way of life, is significantly higher than the company perceives.
The Affordable Care Act (ACA), which is known formally as the Patient Protection and Affordable Care Act (PPACA) and is also known as "Obamacare" and even the more generic "health care reform," is a
An annuitant is the person whose age and life expectancy affect the size of the monthly payments to the owner of an annuity.
Annuitization is the act of triggering a series of payments, usually from an annuity.
To annuitize is to choose to receive a series of payments, usually from an annuity.
An annuity is a financial contract written by an insurance company that provides for a series of guaranteed payments, either for a specific period of time or for the lifetime of one or more
Bailee's customers insurance covers any damage or destruction that a bailee might do to a bailor's property.
Blanket bond refers to insurance coverage carried by banks and brokerage houses that protects against any losses incurred by unlawful or dishonest activity on the part of employees. It is also
Also called a tax-advantaged benefits plan, a cafeteria plan is a type of employee-benefit program recognized by section 125 of the Internal Revenue Code.
In the insurance industry, a calendar year experience (also called accident-year experience or underwriting-year experience) is the difference between the premiums earned and the losses incurred
A capitated contract is a health insurance policy that pays care providers a flat fee for each patient in the plan.
In the insurance business, cash flow underwriting is the equivalent of selling below cost. 
A certificate of insurance, or COI, is issued by an insurance company or insurance broker. The COI summarizes the details and conditions of the policy, including effective dates, types and limits of
Coinsurance, commonly used in health insurance, is the percentage that the insurer pays for a medical claim on behalf of the insured patient after the deductible has been met.  Property 
Collision insurance is insurance coverage that helps to cover the costs to repair or replace an automobile after an accident. A vehicle is typically covered if the insured driver is at fault and
A death benefit is a payment to the beneficiary on an annuity, pension, or life insurance policy upon the death of the annuitant or policyholder.
A deferred annuity is a type of annuity that delays monthly or lump-sum payments until an investor-specified date. The interest usually grows tax-deferred before it is withdrawn.
The donut hole is a situation that occurs as part of Medicare’s Part D prescription coverage. 
An earned premium is the portion of an insurance premium that applies to the expired portion of an insurance policy.
Errors and omissions (E&O) insurance is a type of professional liability insurance used by professionals and their firms to protect themselves, their companies, and their employees in the event
An FDIC insured account is a bank account whose balance is covered by the Federal Depository Insurance Corporation (FDIC) in the event of a bank failure.
The Federal Deposit Insurance Corporation (FDIC) is an agency of the U.S. government that insures deposits in banks and thrift institutions, supervises the risks associated with these insured funds,
A fixed annuity offers a fixed rate of return, and all its future payments are equal amounts.
Gap insurance is insurance that covers underwater cars or RVs.  
Auto body shops can be dangerous places. Accordingly, garage liability covers this very special kind of risk. However, it usually doesn't cover damage that the auto body center does to the cars
Guaranteed issuance refers to an insurer’s requirement to sell a product to a customer regardless of health status, age, gender, or other factors that might affect the customer’s use of
Hazard insurance doesn't just protect the homeowner; it protects the bank that lends to the homeowner. The price of hazard insurance varies depending on what state the house is in, how it is built
Health insurance is insurance that covers some or all of the costs of an individuals healthcare.
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that promises continued health insurance coverage and ensures health information privacy for those covered by health
A health maintenance organization (HMO) is a health insurance provider with a network of contracted healthcare providers and facilities. Subscribers pay a fee for access to services within the HMO
A health reimbursement account (HRA) is a sum of money set aside by a company to offset employee healthcare costs not covered by the company's health insurance plan.
Health savings accounts (HSA) are tax-free savings accounts connected to high-deductible health plans (HDHP). HSAs are used to cover healthcare-related expenses not covered by an HDHP.
A healthcare power of attorney (HCPA) is a document that legally authorizes someone to make health-related decisions on someone else's behalf.
The dollar limits on HDHPs change often (the government thresholds are indexed for inflation). HDHPs are growing in popularity because they help employers limit insurance costs (they have lower
Immediate payment annuities (also called single-premium immediate annuities or SPIAs) are annuities that begin making payments to the owner immediately (within one year of purchase).
An indexed annuity is an annuity that pays a rate of return corresponding to a particular index, such as the S&P 500 Index.
The individual mandate refers to Section 5000A of the Patient Protection and Affordable Care Act (PPACA), also known as "Obamacare" or the more generic "health care reform." PPACA is
An insurance premium is the price a person or business (the insured) pays for an insurance policy. Insurance premiums are paid for all types of insurance: healthcare, rental, accident, auto, home,
An insurance score is a number generated by insurance companies based on your credit score and claim history to determine the probability that a policyholder will file a claim in the future.
Insurance underwriters are professionals who assess and investigate the risks involved in insuring people and assets. Insurance underwriters typically work for an insurance company. They establish
A joint and survivor annuity is an annuity with two named beneficiaries. The annuity provides both beneficiaries with recurring income for life.
A joint life with last survivor annuity is an annuity that provides spouses with income until both spouses have died. The annuity also gives the holder the option to give a portion of the remaining
A joint-life payout is a retirement-benefit payout method whereby a retiree receives benefits from the retirement plan until he or she dies, and the retiree's spouse or partner then receives benefits
Also called key man insurance, key person insurance is insurance on an important executive's life.
Lapse refers to the expiration of an insurance policy or other agreement.  
Liability insurance, also called third-party insurance, protects the insured from claims arising from injuries and damages to other people or property. It covers legal costs and legally required
A life settlement occurs when a person sells his or her whole or universal life insurance policy to a third party, who maintains the premium payments and receives the death benefit when the insured
The life-only option, which is generally associated with annuities, describes the contractual arrangement whereby annuity payments cease upon the owner's death.
The life-plus-ten option, which is generally associated with annuities, describes the contractual arrangement whereby annuity payments are paid out to a beneficiary for ten years after the owner's
Malpractice insurance pays for the mistakes health care professionals make due to negligence or harmful decisions. The premium can be very high, and these premiums are a controversial cost of doing
A market standoff agreement restricts the ability of insiders to sell their holdings following an initial public offering (IPO).
Medicare is the United States federal government health insurance program for Americans who are 65 years of age and older.
The National Association of Insurance and Financial Advisors (NAIFA) is a trade organization for insurance professionals and financial advisors.
Objective probability is the chance that a specific thing will occur.
The Old Age and Survivors Insurance Trust Fund is an account that funds the Old Age Survivors and Disability Insurance Program (OASDI). OASDI, also known as Social Security, is a federal program that
The Old Age Survivors and Disability Insurance Program (OASDI), also known as Social Security, is a federal program that provides income and health insurance to retired people, the disabled, the poor
Permanent life insurance is a life insurance plan that does not expire as long as the policy is in force. Permanent life insurance differs from term life insurance in that term life insurance
Property insurance is an insurance policy or series of policies that provides insurance coverage for property protection and/or liability. The policy provides reimbursement to the policy owner in
The public option refers to a portion of Obamacare that would have created a Medicare-like health insurance policy that most U.S. residents could purchase as an alternative to purchasing policies
Qualified annuities are annuities purchased with pre-tax dollars.
A qualified joint and survivor annuity (QJSA) gives a series of payments to a retirement plan participant’s spouse, child or dependent after the participant dies.
A qualified pre-retirement survivor annuity (QPSA) is a company-sponsored death benefit that provides the employee's surviving spouse with an annuity payment should the employee die before receiving
Second-to-die insurance is a type of life insurance which grants a death benefit only once the second insured party has died.
To self-insure means to use one's own money to pay for unexpected losses (rather than insurance).
A single-payer system is a health care system in which the government pays for all health care costs.
Also called a cafeteria plan, a tax-advantaged benefits plan is a type of employee-benefit program recognized by section 125 of the Internal Revenue Code.  
A tax-deferred annuity (TDA), commonly referred to as a tax-sheltered annuity (TSA) plan or a 403(b) retirement plan, is a retirement savings plan available to employees of certain public education
A tax-sheltered annuity (TSA), also referred to as a tax-deferred annuity (TDA) plan or a 403(b) retirement plan, is a retirement savings plan for employees of certain public education organizations
Term life insurance is a policy which provides financial coverage during a set amount of time. Often considered the "simplest" form of life insurance, it is best suited for providing coverage or
Title insurance is a type of insurance policy that protects property owners and their lenders against losses resulting from problems with a property title. It provides coverage for financial costs
An ultimate mortality table lists the probabilities of death for people of different ages and gender.
An umbrella insurance policy is an insurance policy that covers claims beyond what traditional property and/or liability insurance covers.
Unconditional probability refers to the chance that a particular event will occur without regard to external circumstances.
Underinsured motorist coverage protects drivers from other drivers who do not carry any or enough auto insurance.
In the securities industry an underwriter is a company, usually an investment bank, that helps companies introduce their new securities to the market.   In the insurance business, an
Underwriting is the process that a lender or other financial service uses to assess the creditworthiness or risk of a potential customer.   Underwriting also refers to an investment banker's
Universal life insurance is a type of life insurance policy that allows the policyholder to alter the policy in response to life changes, by merging the benefits of term life insurance with those of
Valuable papers insurance is a kind of property insurance that protects documents such as wills, share certificates, or other crucial paper items.
A variable annuity is a contract sold by an insurance company. The contract provides the holder with future payments based on the performance of the contract's underlying securities. The insurer
A variable life insurance policy allows the account holder to invest a portion of the premium paid for the policy.
Variable universal life insurance is a type of life insurance policy that allows the account holder to invest a portion of the premium dollars. It is not the same as a variable life insurance
A viatical settlement occurs when a person who is chronically or terminally ill sells his or her whole or universal life insurance policy to a third party that maintains the premium payments and
In the insurance world, a viator is a terminally ill person who sells his or her life insurance policy.
A water damage clause is the section of an insurance contract that details whether and how much the insurer will pay the insured for damage caused by water.