Glossary

An adhesion contract (also known as a contract of adhesion) is a contract between two parties, where the terms and conditions are drafted by the party with superior bargaining power (typically a business) and the other party (typically a consumer) has little or no ability to negotiate more favorable terms and, as a result, the consumer is placed in a "take-it-or-leave it" position.

The adjustable feature refers to a cost modification provision found in some reinsurance agreements.

Adjusted earnings are estimated earnings of an insurer based on the growth in premiums written plus net earnings from operations.

The adjusted net worth is an estimated value for a book of business and unrealized capital gains (less potential income tax on the gains), plus the capital surplus and voluntary reserves of an insurer.

An adjuster is one who settles insurance claims.

Administrative law is the body of law that governs the administration and regulation of federal or state administrative agencies. Administrative law is considered a branch of public law.

An administrative order is a legal document issued by an administrative agency such as the Environmental Protection Agency (EPA) directing an individual, business, or other entity to take corrective action or refrain from an activity.

An Administrative Order on Consent (AOC) is an agreement signed by an administrative agency such as the Environmental Protection Agency (EPA) and an individual, business, or other entity through which the violator agrees to pay for correction of violations, take required corrective or cleanup actions, or refrain from an activity.

An administrative services only (ASO) program is a group health self-insurance program for large employers wherein the employer assumes responsibility for all the risk, purchasing only administrative services from the insurer.

An administrator is a person or organization appointed as fiduciary in the settlement of an estate.