Glossary of Terms

A (7) | B (2) | C (10) | D (2) | E (6) | F (4) | I (9) | L (8) | M (1) | P (8) | R (7) | S (5) | T (3) | U (4) | W (1)
Accident Year

The calendar year in which the accident occurs

Additional Premium

Premium due from the insured arising from an endorsement to a policy

Adjustment
  1. A change to the risk/policy. This can be the sum insured, the premium, type of cover or almost anything that will change the scope of cover.
  2. Specifically, the term adjustment often applies to premium adjustments where the premium paid at the commencement of the cover is adjusted at a later date.
Anniversary Date

The date on which the next annual premium is due for policies written for more than one year with premiums payable annually. Commonly used as renewal date for straight 12 month contracts.

Appreciation in Value (AVC) Clause

Sometimes called the Escalator or Escalation Clause. A percentage escalator whereby a daily increase (i.e. 1/365th of the chosen loading) is added to the sum insured.

Assurance

A term interchangeable with insurance but generally used in connection with life insurance cover.

Average

A clause used in non-marine insurance policies whereby, in the event of under-insurance, the claim paid out by the insurer is restricted to the same proportion of the loss as the sum insured under the policy bears to the total value of the claim.