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Actual Cash Value

The sum of money required to pay for damages or lost property, computed on the basis of their fair market value.


A specialist in the mathematics of insurance who calculates rates, analyzes risks, sets reserves, etc.


An individual, usually representing the insurance company, who is responsible for investigating, evaluating and negotiating a policyholder’s claim. The adjuster also may calculate the amount of a loss and determine who is liable for damages.

Admitted Company

An insurance company authorized and licensed to do business in a given state.

Age Limits

The ages below or above which the insurance company will not issue a given policy or renew a policy in force.


(1) The amount of money payable yearly or at other regular intervals. (2) An agreement by an insurer to make periodic payments that continue during the survival of the annuitant (the beneficiary of the policy) or for a specified period.

Application (APP)

A form on which the prospective insured states facts requested by the insurance company and on the basis of which (together with any information from medical examiners, attending physicians, hospitals, investigations and the agent) the insurance company decides whether or not to accept the risk, modify the coverage offered or decline the risk.


The division of loss among insurance companies when two or more cover the same loss.


A hearing between two or more parties that is decided by a third party as a means of settling a dispute.

Assigned Risk

A risk that underwriters do not care to insure but are nonetheless assigned by the state because state law requires the insured be protected.