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Activities of Daily Living – A list of activities, normally including mobility, dressing, bathing, toileting, transferring, and eating which are used to assess degree of impairment and determine eligibility for some types of insurance benefits.

Administrative Services Only (ASO) – An arrangement whereby an organization (usually an employer) hires an outside firm to perform specific administrative services, usually including claim administration, for a group health insurance program. The organization retains financial responsibility for paying claims.

Age Discrimination in Employment Act of 1967 (ADEA) – United States legislation that protects employment rights of individuals age 40 and over. ADEA prohibits age-based firings and generally prevents employers from forcing employees to retire at age 65. In relation to pension plans, ADEA prohibits employers from discontinuing contributions or benefit accruals to an individual’s pension plan after that person reaches age 65.

Agent – An insurance company representative licensed by the state who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer.

Aggregate Deductible – Deductible in some property and health insurance contracts in which all covered losses during a year are added together and the insurer pays only when the aggregate deductible amount is exceeded.

Aggregate Indemnity – The maximum dollar amount that may be collected for any disability or period of disability under the policy.

Annuity – (1) A series of payments made or received at regular intervals. (2) A contract that provides for a series of payments to be made or received at regular intervals. There are many kinds of annuities.

Annuity Certain – An annuity that provides a benefit amount payable for a specified period of time regardless of whether the annuitant lives or dies.

Annuity Mortality Table – A tabulation of probabilities of dying at each age. Used by actuaries to calculate premiums and reserves for annuities in which benefits are paid only if a designated person is alive. Annuity mortality tables usually project lower rates of mortality than do mortality tables that are used for life insurance.

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.

Application – A signed statement of facts made by a person applying for life insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.

Arbitration – Arbitration – A form of alternative dispute resolution where an unbiased person or panel renders an opinion as to responsibility for or extent of a loss.

Assignment of Benefits – An arrangement under which claimants request that their benefit payments be made directly to a designated person or facility, such as a doctor or hospital.

Average Indexed Monthly Earnings (AIME) – Under the OASDI program, the person’s actual earnings are indexed to determine his or her primary insurance amount (PIA).

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