Glossary

An authorized nonadmitted reinsurer is an unlicensed reinsurer authorized to transact reinsurance in the state or country (having established a trust fund for security).

Auto is defined in the commercial auto and commercial general liability (CGL) policies as any land motor vehicle, trailer, or semitrailer designed for travel on public roads; or any other land vehicle subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. The term "auto" does not include "mobile equipment." This definition is important in determining whether liability coverage is afforded under an auto liability policy or a CGL policy (in the case of mobile equipment).

Automatically convertible term life insurance refers to a term life insurance policy that converts on a specific predetermined date to permanent life insurance without the express instructions of the policyholder.

An automatic additional insured endorsement is sometimes attached to liability insurance policies and automatically grants insured status to a person or organization that the named insured is required by contract to add as an insured. It may apply only to specific types of contracts or entities and is also referred to as a "blanket additional insured endorsement."

Automatic insureds are persons or organizations that are provided with insured status by the terms of an unendorsed policy. Most automatic insureds are members of groups with close ties to the named insured, such as the named insured's directors, officers, and employees.

An automatic premium loan is an optional provision in life insurance that authorizes the insurer to pay from the cash value any premium due at the end of the grace period. This provision is useful in preventing inadvertent lapse of the policy.

An automatic treaty is a reinsurance treaty under which the ceding company must cede exposures of a defined class that the reinsurer must accept in accordance with the terms of the treaty.

An Automobile Claim Law Associate (ACLA) is a designation offered by the American Educational Institute (AEI). It requires successful completion of both the AEI legal principles and automobile claims self-study programs.

An Automobile Claim Law Specialist (ACLS) is a designation offered by the American Educational Institute (AEI). It requires successful completion of the AEI automobile claims self-study program.

Automobile liability excess indemnity provides excess limits for bodily injury (BI) and property damage (PD) liability for persons unable to secure more than minimum limits under their basic liability policy. This type of coverage stipulates that the primary policy must always be kept in force and is typically purchased by assigned risk plan policyholders.