Third-party administrator (TPA) that receives information from another entity, performs software edits, and redistributes the claims electronically to various insurance carriers in a standard transaction. Also known as clearinghouse .
Insurance Encyclopedia
Automated eligibility verification system (AEVS)
An interactive voice response system in the Medi-Cal program that allows providers to access recipient eligibility, clear share of cost, and/or reserve a Medi-Service.
Automated Medicaid payment system (AMPS)
Name of an insurance claim reimbursement method that uses computer technology in settling Medicaid claims.
Automatic bill payment
Bank service that permits payment by one check to a number of creditors or direct payment by the bank for specified recurring bills by monthly transfer of funds (e.g., payment of insurance premiums). See also electronic funds transfer system (EFTS) and preauthorized payment. Also called bank check plan, check deposit billing, electronic funds transfer system (EFTS), check-o-matic, preauthorized checking, or preauthorized payment.
Automatic coverage
Coverage that is automatically provided under an existing policy to cover newly purchased property or property that appreciates in value.
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Insurance coverage given automatically by a Policy, usually for a specified period and limited amount to cover increasing values and newly acquired and changing interests.
Automatic escalation clause
See: Escalation Clause; Index-Linking.
Automatic High-Beam Control for Motor
This is a system that automatically illuminates and dims the high beam headlights in relation to approaching traffic. A camera mounted on the rearview mirror detects when the vehicle is closing in on oncoming traffic, as well as vehicles ahead traveling in the same direction, and disengages the high beams. The latest technology not only merely swath between low and high beams but reacts by gradually increasing or lowering the light distribution based on the distance of approaching traffic. It also dims the high beams for sharp turns and then re-engages the high beams if there is no approaching traffic once the turn is completed.
Automatic increase in benefit provision (Life Insurance)
A clause found in disability coverage that increases the amount of payments by a previously stated percentage for a certain amount of years.
Automatic Increase Rider
This rider increases your monthly benefit amount each year. It can be for a fixed amount (e.g., 4%) or it can be tied to inflation. In this way, your disability benefit grows as your income increases. Once you are disabled, however, your benefit is fixed for the benefit period.
Automatic non-proportional reinsurance (Reinsurance)
Automatic protection of the insurer against losses that exceed a previously stated limit.