The Supplemental Term Insurance Option is an option available under participating life insurance policies whereby the policyholder can ask the insurance company to use policy dividends as a net one-time premium to purchase a 1-year life insurance policy for the life of the policyholder. Also known as the fifth dividend option. There are other ways to add term insurance to a permanent insurance policy, usually by adding riders for additional term coverage.
An adhesion contract is a contract (also known as an adhesion contract) between two parties in which the terms and conditions are drafted by the party with greater bargaining power (usually the business) and the other party (usually the consumer) has little or no opportunity to negotiate more favorable terms. conditions, and as a result, the consumer finds himself in a “take it or not take it” position. Courts scrutinize adhesion contracts and sometimes strike out certain provisions on the grounds that they are in bad faith or are the result of unequal bargaining power.
An adjustable feature is a value change clause found in some reinsurance contracts. The parties agree to adjust the final premium rate or the final assignment fee retrospectively in accordance with the experience of losses according to the formulas set out in the agreement.
Adjusted net worth is the estimated book value and unrealized capital gains (net of potential income tax on the gains), plus capital surplus and voluntary provisions of the insurer. Other adjustments are often made as well.
An adjuster is someone who settles insurance claims. This usually includes investigating losses and determining the extent of coverage. In the context of first party insurance (eg property insurance), the adjuster negotiates a settlement with the policyholder. In liability insurance, the adjuster coordinates the insured’s defense and participates in settlement negotiations. Adjusters can be employees of the insurer (in-house adjusters) or independent adjuster bureaus (independent adjusters), which represent insurers and self-insurers on a contractual basis. Government adjusters are consultants who specialize in helping policyholders make claims against insurance companies in a way that maximizes their recovery.
Administrative law is a body of law created by federal or state administrative bodies with the consent of the respective legislatures. This law usually takes the form of rules and regulations similar to those promulgated by government insurance departments.
An administrative order is a legal document issued by an administrative body, such as the Environmental Protection Agency (EPA), directing an individual, business, or other entity to take corrective action or refrain from doing something. It describes violations and actions that need to be taken and that can be enforced in court. Such orders may be issued, for example, as a result of an administrative complaint, according to which the defendant is ordered to pay a fine for breaking the law.
An administrative consent order is a legal agreement signed by an administrative agency, such as the Environmental Protection Agency (EPA), and an individual, business, or other legal entity through which the infringer agrees to pay for the correction of violations, take necessary corrective action, or clean up. or refrain from activity. It describes the actions to be taken, may be subject to a comment period, applies to civil actions, and can be enforced in court.
Administrative Services Only (ASO) is a group health self-insurance program for large employers in which the employer assumes all risks by purchasing only administrative services from the insurer. Such administrative services include activities such as preparation of administrative guidance, communication with employees, determination and payment of benefits, preparation of government reports, preparation of short plan descriptions, and accounting. Most employers would also purchase stop loss insurance to protect against catastrophic losses.