Glossary

An annual aggregate deductible is a deductible-type program under which the insured agrees to reimburse its insurer for its own losses during the policy year up to the agreed upon annual aggregate amount. Once the insured has paid losses up to that amount, the insurer pays the remainder of losses for the annual period without seeking reimbursement from the insured. It is also the amount by which a loss or applicable coverage limit is reduced in order to determine the amount of the insured's recovery. In standard property insurance practice, the deductible amount is subtracted from the amount of the adjusted loss; the insurer pays this reduced amount, and the insured is responsible for the deductible amount.

An annual statement is a yearly report required by the state insurance commissioner detailing an insurer's income, expenses, assets, and liabilities, along with other pertinent data.

The annuitant is the person or persons (two or more) who receive an income benefit for life or during a specified period (the liquidation period) under an annuity contract.

Annuity refers to a stream of periodic payments made over a specified period.

Annuity certain refers to funds received from an annuity in the form of a guaranteed minimum number or amount of payments.

Annuity due refers to income received from an annuity that is paid at the beginning of a period rather than at the end.

An answer is the written response of a defendant to a plaintiff's complaint in which the defendant admits or denies the allegations of the complaint and presents any affirmative defenses and counterclaims.

Anti-assignment clauses are insurance policy provisions that require the insurance company's consent to any assignment or transfer of rights of the policy and are generally enforceable before a loss occurs. The assignment of rights before a loss occurs basically becomes a transfer of a contractual relationship, which is generally discouraged by the courts and prohibited by this anti-assignment clause. If the assignment occurs after a loss, the majority rule is that the anti-assignment clause is void and unenforceable.

Anti-concurrent causation language (ACC) is a policy provision usually inserted into the preamble to a group of exclusions in a property insurance policy that is designed to combat the misapplication of the concurrent cause doctrine from tort law to a first-party property policy.

An anti-concurrent cause (ACC) provision is a term in a first-party policy that indicates that a loss caused by a combination of covered and excluded causes of losses will not be covered. An ACC provision applies in either sequential-cause situations, where the first event sets in motion a chain of events that causes a second event that causes the loss, or concurrent-cause situations, where two or more causes of loss happen simultaneously to produce the same injury or damage. If any cause of loss falls within the terms of a policy exclusion that is accompanied by ACC language, the loss will be excluded, regardless of whether another unexcluded cause of loss qualifies as the "proximate cause" under the jurisdiction's common law rules.