Glossary

An asset class is any type of financial transaction that can be converted into a standardized, quantifiable, negotiable asset. The use of derivatives has given rise to the creation of several significant asset classes, such as mortgage-backed securities. Insurance-linked securities (ILS) also represent a new asset class. Stocks and bonds are the best-known asset classes.

An asset risk is the measure of an asset's default potential or market value fluctuation. For example, assume a firm's investment portfolio includes grain futures purchased on the Chicago Board of Trade. The asset risk is the risk associated with the overall robustness of the grain futures market and the default potential of the investment.

An asset share value is the value of a class of business to an insurer.

An assigned risk (AR) plan is a method of providing insurance, especially those required by state statutes, for those risks that are uninsurable in the normal insurance market. All insurers that write that coverage in the state will be "assigned" a share of applicants from the AR plan. For example, because auto liability and workers compensation insurance are required in most states, those with poor loss histories must be provided with access to these coverages. Although it is not required by law, many states also make homeowners insurance available under an AR plan. Every state, with the exception of those that are monopolistic, has a workers compensation AR plan, which is either a stand-alone entity or part of the competitive state fund. All insurers writing workers compensation coverage in the voluntary insurance market must also participate in the plan.

An assignee is the receiver of policy rights through an assignment.

Assignment is a transfer of legal rights under or interest in an insurance policy to another party. In most instances, the assignment of such rights can only be effected with the written consent of the insurer.

An associate is an attorney who is new to the practice of law or who has not yet made partner at a law firm. An entry-level lawyer usually works for a firm for 6 to 7 years before becoming eligible for consideration as a partner at a law firm.

The Associated General Contractors of America (AGC) is a national trade organization for construction contractors that lobbies on behalf of and provides services and resources to its members. States and cities also have local memberships that feed up to the national organization.

The Associateship of the Chartered Insurance Institute (ACII) is a professional designation, established in the United Kingdom, identifying an individual who has satisfactorily completed 10 examinations on insurance and general business topics. This designation includes ethics and experience requirements similar to those required to attain the Chartered Property Casualty Underwriter (CPCU) designation. The Chartered Insurance Institute (CII) administers the ACII program.

Associate in Automation Management (AAM) is a professional designation awarded by The Institutes upon successful completion of three national exams. The program leading to this designation consists of three 13-week courses with three national exams and is designed for insurance practitioners who use automation in their work, supervise automated activities, or provide information services to insurance practitioners.