| Absolute Liability | Liability for damages where the fault is not looked into such as a civilian attacked by animals from the forest and Govt. pays compensation, WC Act Policy. |
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| Accident | It is external, violent and sudden. |
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| Accident | An unforeseen and unintended event or occurrence. |
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| Accidental Death Benefit | If the insured dies as the result of an accident, the additional benefit payable besides the appropriate value of a life insurance policy. |
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| Accidental Insurance | For covering loss occurring due to accidental bodily injury. Accident Insurance is provided. |
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| Accrued Benefit | A method of federal income taxation in which the owner of a life insurance policy is taxed periodically on portions of the policy's cash value build-up. |
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| Accrued Benefit | In a defined benefit pension plan, the amount of pension benefit that has accumulated in a pension plan on behalf of an individual plan participant as of a specified date. |
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| Accumulated Value | The net amount paid by the contract owner for a deferred annuity plus interest earned, less the amount of any withdrawals and fees. |
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| Accumulation Period | The period between the contract owner's purchase of a deferred annuity and the onset of the annuity's payout period. |
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| Acid test ratio | It is a measure of liquidity arrived at by dividing current assets excluding inventories also called quick tests by current liabilities. |
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| Actual Cash Value | Value of property at the time of damage found out by replacement cost minus depreciation. |
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| Actuary | A professional having expertise in the technical aspects of pension, insurance and related fields who estimates the amount of money to be contributed to an insurance on pension fund in order to provide for his future. |
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| Adverse selection | Tendency of persons with a higher than average chance of loss to seek benefits of insurance by paying lower premium. Checked by the underwriting procedure, otherwise it leads to higher-than-expected loss. |
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| Age Limits | The stipulated minimum and maximum ages below and above which the acceptance of applications, renewal of policies, are done by the company. |
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| AGENT | A person who solicits, negotiates or causes to effect a contract of insurance on behalf of an insurer. |
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| Agent | He represents the insurer, exercises authority of the principal by express, implied and apparent authority rules. |
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| Aggregate deductible | In health and property insurance contract, the insurer pays the losses in a year if the aggregate deductible is reached. |
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| Aleatory contract | Where values exchanged may not be equal such as term insurance. |
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| All-risks policy | All risks are covered where certain perils are excluded. |
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| Alpha | measures the extra return earned on a scheme on a risk-adjusted basis. |
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| AMC | MF company sets up a seperate company to run the MF. |
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| Anchoring | Investors hold on to the belief that a company will remain above-average. |
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| Annuitant | The person to receive the annuity during whose life annuity is payable. |
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| Annuity | A contract providing an income for a specified period of time is number of years or for life. |
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| Annuity | Payments made out of annuity plans offereed by life insurance companies. |
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| Annuity | Periodic payments paid upto death or certain period. |
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| Annuity Certain | Provision of income for a specified number of years, regardless of life or death of a policyholder |
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| Annuity Consideration | An annuitant making one of the regular periodic payments for an annuity. |
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| Annuity Units | The term used for ownership shares in a variable annuity's separate-account fund after the accumulation period has ended. Annuity units are bought with accumulation units and are used to determine benefit payment amounts. |
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| APPLICATION/PROPOSALFORM | A form on which a prospective insured states facts requested by the insurer on the basis of which (together with information from other sources e.g. medical examiner) the insurer decides whether to accept the risk, modify the coverage, or decline the risk. |
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| Arbitrage Schemes | Arbitrage Schemes are not subject to the volatile equity schemes. |
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| Arithmetic Mean | It measures the central tendency of a series of returns. |
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| Assessee | A person who pays income-tax or whose income is taxable is called an assessee. |
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| Assignment | Under Transfer of Property Act, a life insurance policy treated as an estate is assigned in favour of, say, Bank for receiving loan from the Bank, and Banks interests are protected.Absolute assignment: no rights revert to the owner.Conditional assignment: rights revert to the owner on certain condition |
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| Assignment | An individual's personal interest in an insurance policy transferred legally to another person. |
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| Assumption of risk | Defense against a negligence claim where damages are not paid if a person understands and recognizes the danger inherent in a particular activity. |
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| ASSURED | The party who is entitled to receive money under a life insurance contract on the happening of a stated contingency or event. A contingency in the case of whole life assurance would be death, and in the case of an endowment policy the stated event would be survival beyond the policy term. The assured is also sometimes referred to as the insured. |
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| ASSURER | The party who agrees to pay the money to another party on the happening of a stated contingency or event. The assure is also sometimes referred to as the insurer. |
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| Attractive nuisance | Event organizer is held responsible in the case of damage to children. |
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