Glossary

The actively at work provision is a group health insurance policy provision that excludes coverage for an employee who is not at work because of an accident or sickness on the date the health policy becomes effective. Under an "actively at work" provision, an employee is not eligible for coverage until they return to work.

An active life fund is an unallocated fund in a pension plan maintained for active participants included under a deposit administration plan. As participants retire, individual annuities are purchased with money from the fund.

Activity standards are guidelines that focus on the efforts ("activities") made to achieve the goal, regardless of whether the goal was met.

In property and auto physical damage insurance, actual cash value (ACV) is one of several possible methods of establishing the value of insured property to determine the amount the insurer will pay in the event of loss. ACV is typically calculated one of three ways: (1) the cost to repair or replace the damaged property, minus depreciation; (2) the damaged property's "fair market value"; or (3) using the "broad evidence rule," which calls for considering all relevant evidence of the value of the damaged property.

An actuarial report is the product of an actuary's study of an organization's loss experience using probability theory and other methods of statistical analysis. An actuarial report can be used to determine an insured's projected losses, a self-insured's liability accruals, the adequacy of a property-casualty (P&C) insurer's statutory loss reserves, or a life insurer's unearned premium (technical) reserves. It may be the basis of rate development.

An actuary is an individual, often holding a professional designation—for example, Fellow of the Casualty Actuarial Society (FCAS)—who computes statistics relating to insurance, typically estimating loss reserves and developing premium rates.

Act of God refers to an accident or event resulting from natural causes, without human intervention or agency, and one that could not have been prevented by reasonable foresight or care—for example, floods, lightning, earthquake, or storms. This is terminology found in ocean and inland marine policies.

Acute care refers to short-term medical treatment for patients having an acute illness or injury or recovering from surgery.

Acute exposure is a single exposure to a toxic substance that results in severe biological harm or death. Acute exposures are usually characterized as lasting no longer than a day, as compared to continuous or repeated exposure over a longer period.

Acute toxicity is the ability of a substance to cause poisonous effects resulting in severe biological harm or death soon after either a single exposure or dose or multiple exposures over a short duration. It is also any severe poisonous effect resulting from a single, short-term exposure to a toxic substance.