Acceleration Clause - The part of a contract that says when a loan
may be declared due and payable.
Accidental Death Benefit - In a life insurance policy, benefit in
addition to the death benefit paid to the beneficiary, should death occur due
to an accident. There can be certain exclusions as well as time and age limits.
Active Participant - Person whose absence from a planned event
would trigger a benefit if the event needs to be canceled or postponed.
Activities of Daily Living - Bathing, preparing and eating meals, moving
from room to room, getting into and out of beds or chairs, dressing, using a
toilet.
Actual Cash Value - Cost of replacing damaged or destroyed
property with comparable new property, minus depreciation and obsolescence. For
example, a 10-year-old sofa will not be replaced at current full value because
of a decade of depreciation.
Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics. (Americanism: In most other countries the individual is known as "mathematician.")
Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics. (Americanism: In most other countries the individual is known as "mathematician.")
Adjustable Rate - An interest rate that changes, based on
changes in a published market-rate index.
Adjuster - A representative of the insurer who seeks to determine the
extent of the insurer's liability for loss when a claim is submitted
.
Admitted Assets - Assets permitted by state law to be
included in an insurance company's annual statement. These assets are an
important factor when regulators measure insurance company solvency. They
include mortgages, stocks, bonds and real estate.
Agent -individual who sells and services insurance policies in either
of two classifications:
- Independent agent represents at least two insurance companies and (at least in theory) services clients by searching the market for the most advantageous price for the most coverage. The agent's commission is a percentage of each premium paid and includes a fee for servicing the insured's policy.
- Direct or career agent represents only one company and sells only its policies. This agent is paid on a commission basis in much the same manner as the independent agent.
Aggregate Limit -
Usually refers to liability insurance and indicates the amount of coverage that
the insured has under the contract for a specific period of time, usually the
contract period, no matter how many separate accidents might occur.
Annual Administrative Fee - Charge for expenses associated with
administering a group employee benefit plan.
Annual Crediting Cap - The maximum rate that the equity-indexed
annuity can be credited in a year. If a contract has an upper limit, or cap, of
7 percent and the index linked to the annuity gained 7.2 percent, only 7
percent would be credited to the annuity.
Annuitization - Process by which you convert part or all of
the money in a qualified retirement plan or nonqualified annuity contract into
a stream of regular income payments, either for your lifetime or the lifetimes
of you and your joint annuitant. Once you choose to annuitize, the payment
schedule and the amount is generally fixed and can't be altered.
Annuitization Options - Choices in the way to annuitize. For
example, life with a 10-year period certain means payouts will last a lifetime,
but should the annuitant die during the first 10 years, the payments will
continue to beneficiaries through the 10th year. Selection of such an option
reduces the amount of the periodic payment.
Annuity - An agreement by an insurer to make periodic payments that
continue during the survival of the annuitant(s) or for a specified period.
Approved for Reinsurance - Indicates the company is approved (or
authorized) to write reinsurance on risks in this state. A license to write
reinsurance might not be required in these states.
Approved or Not Disapproved for Surplus Lines -
Indicates the company is approved (or not disapproved) to write excess or
surplus lines in this state.
Assets - Assets refer to "all the available properties of every
kind or possession of an insurance company that might be used to pay its
debts." There are three classifications of assets: invested assets, all
other assets, and total admitted assets. Invested assets refer to things such
as bonds, stocks, cash and income-producing real estate. All other assets refer
to nonincome producing possessions such as the building the company occupies,
office furniture, and debts owed, usually in the form of deferred and unpaid
premiums. Total admitted assets refer to everything a company owns. All other plus
invested assets equals total admitted assets. By law, some states don't permit
insurance companies to claim certain goods and possessions, such as deferred
and unpaid premiums, in the all other assets category, declaring them
"nonadmissable."
Attained Age - Insured's age at a particular time. For
example, many term life insurance policies allow an insured to convert to
permanent insurance without a physical examination at the insured's then
attained age. Upon conversion, the premium usually rises substantially to
reflect the insured's age and diminished life expectancy.
Authorized Under Federal Products Liability Risk Retention Act
(Risk Retention Groups) - Indicates companies operating under the
Federal Products Liability Risk Retention Act of 1981 and the Liability Risk
Retention Act of 1986.
Automobile Liability Insurance - Coverage if an
insured is legally liable for bodily injury or property damage caused by an
automobile.
Many common small business challenges are fixable about four challenges every business faces, along with tactical advice on how to fix them. Learn about the pain points problems you might face running your small business and how to overcome their insights into Martinowest's small businesses.
ReplyDeletehttps://martinowest.com/4-pain-points-for-a-small-business-owner/