A.M. Best Company, Inc.: An independent company that rates insurance companies on their financial stability and future claims-paying ability (see www.ambest.com).

Actual cash value (ACV): Replacement cost of damaged or lost property less depreciation.

Additional insured endorsement: The contract by which an additional insured (a person or entity, other than the named insured) is protected by a particular insurance policy.

Adverse selection: Among applicants for a given group or individual health insurance program, the tendency for those with an impaired health status, or who are prone to higher-than-average utilization of benefits, to be enrolled in disproportionate numbers in lower deductible plans.

Age Banded Rates: Insurance premiums are based solely on each member’s age. Example: 30–39 has one rate and 40–50 has another set of rates that are higher.

Aggregate deductible: Is when two people can meet the deductible for the whole family.

Aggregate limit: Maximum amount that the insurer will pay under a liability policy during one annual policy period, regardless of the number of occurrences, usually in addition to legal defense costs. For general liability, policies are sometimes written with the aggregate limit applying separately to each scheduled location.

Ancillary Coverage: Benefits other than health insurance such as dental, vision, life, disability and retirement.