A systematic process of paying a debt, with interest, over a given number of years.
Insurance Encyclopedia
Amortization / Amortisation
Process of the gradual retirement of an outstanding debt by making periodic payments over a stated period of time.
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UK: Periodical reduction in the value of a lease or other time-related asset until the asset is written down to nil. In insurance it is the ability to match the cost of cover to the actuarial probability of risk over time. Pension scheme actuaries spread an actuarial surplus or actuarial deficiency over an appropriate period.
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Writing off part of the value of an asset in a company’s books at intervals until the value of an asset is extinguished.
Amortization schedule (Pensions)
A table detailing the schedule for paying off a debt over a given number of years.
Amortized Value
The amount at a given point in time to which the purchase price of a bond purchased at a discount or premium has been increased or decreased.
Amount at risk
The difference between the face value of a life policy and the mathematical reserve that has accrued. The net amount at risk declines throughout the duration of the contract while the reserve and its cash value increase. The amount at risk is the sum that an insurer would have to draw from its own funds rather than the policy reserve in the event of having to pay a claim for death.
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Actuarial term for the difference between the sum insured and the mathematical reserve.
Amount at risk (Life Insurance)
The difference between the given value of a life insurance policy and the cash value it has accrued. This is the amount the insurer would have to pay of his or her own money should the insured die and a death benefit need to be paid out.
Amount billed
Fee charged for the medical services rendered to a patient by a provider and submitted or transmitted by the provider on an insurance claim form. When the provider is billing, this total charge is inserted in Block 28 of the CMS-1500 insurance claim form. When the hospital is billing, this total charge is inserted in Field 47 of the UB-04 insurance claim form.
Amount of claim for Disputes
Disputes regarding Insurance claims relating to the amount payable under the Policy are settled through the process of arbitration provided in the Arbitration Act, 1996, as amended up-to-date. The arbitration condition in the Policy gives effect to this position.
Amount subject
The maximum amount that underwriters estimate can possibly be lost under the most unfavorable circumstances in any given loss, such as a fire or tornado. Contrast with Probable Maximum Loss.
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Maximum value of property which underwriters estimate can possibly be lost under the most unfavorable circumstances in any given event, such as a Fire. Refer “Loss, Maximum probable.”
Amount-in-controversy (AIC) requirements
In the Medicare program, the dollar amount of a medical service that has been denied and then appealed by the provider and patient to the insurance carrier for redetermination.