Glossary

An agent of record is the individual insurance agent or insurance agency authorized by an insured to represent the insured in the purchase, servicing, and maintenance of its insurance program with a designated insurer.

An agent's license is a state-issued permit under whose provisions the agent conducts business.

The Age Discrimination in Employment Act (ADEA) of 1967 is a law that prohibits the making of employment decisions (e.g., hiring, promotion) based on age.

Aggravation is a worsening of a preexisting condition where the underlying pathology of the condition is permanently advanced.

An aggregate is a limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually a year.

The aggregate deductible is the maximum amount the insured can pay as deductibles over a specified period, typically 1 year.

Aggregate excess insurance provides coverage once the total claims for an annual period exceed a predetermined retention amount.

Aggregate excess of loss reinsurance is a form of reinsurance that stipulates participation by the reinsurer when aggregate excess losses for the primary insurer exceed a certain stated retention level.

An aggregate limits reinstatement is a clause contained in the extended reporting provisions of some claims-made policies that reinstates—for the term of the extended reporting period (ERP)—the original policy limits of liability if they have been reduced or impaired by the payment of claims or the setting of claim reserves.

The aggregate limit of liability is an insurance contract provision limiting the maximum liability of an insurer for a series of losses in a given time period—for example, a year or for the entire period of the contract.