Glossary

Assurer is a British term meaning an insurer or underwriter, depending on context. Policies and endorsements written in London and Bermuda markets, among other places, may use this terminology.

"As their interests may appear" (ATIMA) is a phrase added to insurance policies and endorsements to add others as insureds. The use of the ATIMA or similar phrases was clearly embraced by fire underwriters, particularly with regard to mortgage endorsements, as a way of matching coverage to the financial interest of a specified entity or person and avoiding violations of the policy condition relating to sole property ownership. The phrase "ATIMA" continues to surface today in builders risk policies, reinforced in part due to the language in standardized contracts commonly used for construction work. For instance, the American Institute of Architects (AIA) General Conditions A201 requires the property insurance to include the interests of the owner, contractor, subcontractors, and sub-subcontractors in the project. Use of this phrase in builders risk policies should be avoided, as it can lead to unintended consequences and unnecessary litigation.

Attachment basis is a provision in reinsurance agreements that determines whether and in what manner a reinsurance agreement covers a specific loss.

The attachment point is the point at which excess insurance or reinsurance limits apply. For example, a captive's retention may be $250,000; this is the "attachment point" at which excess reinsurance limits would apply.

Attained age is the age of an insured on a given date. It is not to be confused with nearest age.

An attorney-client communication is an oral or written communication between an attorney and a client that is intended to remain confidential.

Attorney work product is written or oral materials prepared by or at the direction of an attorney pursuant to the attorney/client relationship or in furtherance of pending or contemplated litigation.

The attractive nuisance doctrine is a notable exception in the law relating to trespassers that imposes a special duty of care on a person maintaining an artificial condition on land that attracts children (e.g., a swimming pool or playground). Under the attractive nuisance doctrine, children enjoy the status and protection of invitees. In some cases, the landowner has been held absolutely liable for injuries to children in connection with an attractive nuisance even though the children were trespassers.

An auction rate security (ARS) is type of long-term bond issued by a corporation or a municipality. ARSs differ from traditional bonds in one crucial respect: rather than paying a fixed rate of interest for a long time (e.g., a minimum of 10 and sometimes as long as 30 years), the interest rate on an ARS "resets" frequently through a process known as a Dutch auction, which takes place every 7, 28, or 35 days. At each Dutch auction, ARS holders are given an opportunity to sell the ARS. Issuers/borrowers of an ARS benefit because ARSs can provide them with long-term financing but at substantially lower rates compared to traditional long-term bonds. Buyers of ARSs benefit because, given their short-term nature, an ARS offers the liquidity of a money market fund yet with a higher rate of return.

An audit is a survey of the financial records of a person or organization conducted annually (in most cases) to determine exposures, limits, premiums, etc.