The monitoring of any actual or potential accumulation of risk (e.g. number of properties in a locality exposed to the same loss event, e.g. flood) in order to ensure that underwriting capacity is not exceeded and/or adequate reinsurance or suitable co-insurance is arranged.
Insurance Encyclopedia
Accumulation factor Life
insurance term referring to the accumulation of a single premium of 1 over a period of time taking account of the interest the premium will earn and the probability of the insured surviving.
Accumulation in risk
A combination of hazardous risk factors affecting an insured risk, e.g. poorly constructed building, hazardous trade or poor claims experience.
Accumulation option
See: accumulation at interest.
Accumulation period
1. Time during which premiums are payable on a deferred annuity contract. 2. Precise time period during which the insured must incur eligible medical expenses that satisfy a required deductible. This applies to major medical or comprehensive medical plans. ************
A specified period of time, such as 90 days, during which the insured person must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.
Accumulation units
Ownership shares in a variable annuity’s separate account fund. An individual pays premiums for a variable annuity and these premiums are credited to the purchaser’s account (accumulation units). After the accumulation period ends, these units are used to buy annuity units. See also annuity units.
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UK: Units issued by a unit trust derived from the net income when it is automatically used to buy more units in the same fund. The unitholder benefits from not having to pay an initial charge on his reinvested income.
Accumulations
Increased policy benefits as a result of continuous policy renewal.
Accuracy
Pertaining to medical data in hospital or medical office settings, the degree to which the information is correct, precise, and free of errors.
Acknowledgement
The act of one who has executed a written instrument in going before a competent court or officer and declaring it to be his voluntary act and deed.
ACORD
An organization that develops insurance forms used as a standard by many within the insurance industry. The ACORD certificate, application, and loss form are common means of exchanging information. ACORD stands for Agency Company Operations Research and Development.