| Term | Definition |
| Abandonment Clause | A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. |
| Accident | A fortuitous, unexpected, undesigned, unintended event occurring suddenly. Today. |
| Accommodation Line | Business accepted by a company which normally would be rejected according to a strict underwriting standard, but which is accepted because of the relationship of the agent to the company or the client to the company and agent. |
| Account Current | The report of premium transactions, usually on a monthly basis, either provided by the agency to the company, or by the company to the agency. |
| Accounts Receivable Coverage Form | An inland marine coverage form that insures against loss the insured suffers when not able to collect account receivables from customers |
| Accredited Advisor in Insurance (AAI) | Designation offered by the Insurance Institute of America (CPCU/IIAA) that stresses the production side of insurance, with study in personal and commercial property and liability contracts, sales and agency management. |
| Accredited Customer Service Representative (ACSR) | Designation offered by the Independent Insurance Agents of America (IIAA) that stresses the service side of insurance, with study in commercial and/or personal lines insurance contracts, account development, errors and omissions, and quality customer service. |
| Actual Cash Value (ACV) | The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost — Depreciation). |
| Actuary | A statistical specialist responsible for rate, reserve, and dividend calculations as well as other insurance-related statistical studies. |
| Additional insured | This is an individual, company or some other entity that is not considered the insured as definded under the insurance policy of another, but may be added to that policy by endorsement to aford a degree of insurance protection. |
| Adjustable Exposures | Premiums for some coverages (exposures) are based on estimates of amounts which may change during the policy term. These include: sales, payroll, costs of contracts, numbers of items held in inventory, etc. These are reviewed and any premium adjustment is made at the time of audit. (See Audit) |
| Adjuster | A representative of the insurer who arranges for adjustment and/or settlement of a loss |
| Admitted Aircraft Liability Coverage | A coverage sometimes written in conjunction with Aircraft passenger liability which can provide reimbursement for death or dismemberment without requiring legal action. |
| Advertising Injury | Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan. |
| Agency Agreement | The contract which establishes the legal relationship between the agent and the insurer. In addition to other features, it sets forth the authority of the agent and his scale of commissions. |
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