Insurance Glossary

If offered, any amount an employee can contribute to a 401(k) must also be available to the employee in cash.

A-Side Coverage covers the insureds for defense costs, settlement fees and judgments for a covered insured but only if the insured company cannot indemnify the person otherwise. If the insured company doesn’t have enough money or goes bankrupt before a settlement or judgment is rendered, A-Side coverage would apply.

A global credit rating (provided by the A.M. Best rating agency) indicating an insurance carrier’s financial strength and credit worthiness. The insurance carrier is also assigned a Financial Size Category (FSC) to enhance the usefulness of the A.M. Best credit rating.

Property left to the insurer by the insured 

An abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose.

Unexpected or unforeseen actual, identifiable event happening suddenly or violently, with or without human fault, resulting in bodily injury.

An insurance professional responsible for managing client relationships and overseeing insurance accounts.

A professional who coordinates and maintains insurance accounts, ensuring client satisfaction and policy adherence.

Although not typically defined in the insurance policy contract, action levels are the maximum allowable levels of contaminants as set by local, state, or federal law or regulation. Exceeding the “action level” is usually required before an event is considered “pollution.”

The cost of a new, identical or like-kind item minus physical depreciation.

The actual financial loss suffered by the insured, typically covered under business interruption insurance.

Individuals and/or companies included or added as an insured on a policy at the request of the named insured

An insurance carrier that is formally admitted or licensed to operate by the state insurance agency where the company operates. They typically contribute to the state guaranty fund, which protects policyholders from the bankruptcy of its insurance carrier. 

Employer-provided adoption assistance benefits can also be offered on a pre-tax basis.

A notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters.

Employees must opt-in to the health and benefits plan and pay the associated employee-share of premium on a pre-tax basis through the (Section 125) Cafeteria Plan.

The Patient Protection and Affordable Care Act is a comprehensive health care reform law enacted in March 2010. 

The individual or company authorized to represent an insured in the purchase, servicing, and maintenance of insurance coverage with a designated insurer.

The maximum amount any insurer will pay for all losses other than those arising from specified exposures during the policy period.

An unsupported accusation.