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.

A clause found in disability coverage that increases the amount of payments by a previously stated percentage for a certain amount of years.

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 protection of the insurer against losses that exceed a previously stated limit.

Automatic premium loan provisions are found in life insurance policies that build cash value. If the insured has failed to pay the premium due by the end of the grace period, the insurance company will “loan” the premium to the insured using the insured’s cash value. The advantage of this provision is that the policy remains in force even when the insured is unable to pay the premium. For example, suppose Ellen has a $100,000 whole life insurance policy with $8,000 cash value. Ellen pays $250 quarterly for the coverage, but fails to pay the most recent quarter. Under the automatic premium loan provision, the insurance company will loan Ellen $250 of her $8,000 cash value to keep the insurance in force. Ellen can repay the loan or allow future cash value accumulations to repay the loan. The insurance company charges a nominal rate of interest on the loan. (See Non-forfeiture Options).

A clause found in life insurance policies that states that any premium not paid at the end of the stated grace period will automatically be paid by a policy loan taken from the policy’s cash value.

A type of reinsurance wherein the insurer automatically reinsures certain risks with his or her reinsurer by transfer. Under this type of reinsurance, premiums and losses are divided between the insurer and reinsurer. The reinsurer pays the insurer a transfer commission.