Actual to Expected (A/E)

Relationship of the actual performance of a contract compared to pricing. May be used for premium, claims, persistency, commissions, etc.

Benefit Reserves

The present value of the amount of future claims (not including future payments on claims already incurred, whether known or unknown) as of the valuation date, less the present value of a percentage of premiums.  Assumptions are best estimate with PAD for US GAAP and may be set by standard for regulatory (statutory).  Discount rates … Read more

Accident Year of Experience

Underwriting results allocated back to the given twelve-month accounting period when the losses occurred, regardless of when the losses are actually reported, booked, or paid. Compare with Calendar Year of Experience and Underwriting Year of Experience. See Stop Loss.


Procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party.

Acquisition Costs

All expenses directly related to acquiring insurance or reinsurance accounts, i.e., commissions paid to agents, brokerage fees paid to brokers, and expenses associated with marketing, underwriting, contract insurance and premium collection.

Accelerated Death Benefits

A life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. This is in lieu of a traditional policy that pays beneficiaries after the insured’s death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in … Read more

A-Share Variable Annuity

A form of variable Annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge.