Increased policy benefits as a result of continuous policy renewal.
Tag: RAW
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.
ACORD (Association for Cooperative Operations Research and Development]
Non-profit insurance association that facilitates the development use of global insurance standards for insurance-related financial services industries. ACORD is committed to improving efficiency and expanding market reach by reducing costs; reducing duplication of work and ambiguous communication exchanges; improving accuracy; facilitating e-commerce; and supporting multiple distribution models. WISE ceded the promotion of electronic data standards to the organisation in July 2001. ACORD has offices in New York and London. Visit www.acord.org.
Acquired
In a medical sense, clinically indicates a condition produced by outside influences and not genetically.
Acquisition cost
1. Total cost to the company of setting up a new business such as commissions to agents and brokers, supervision costs, sales promotion expenses, and cost of secretarial work. 2. In health insurance, the cost of selling, underwriting, and issuing a new insurance policy (administrative costs, brokers’ commissions, advertising, and medical fees). Also called policy acquisition costs.
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UK: cost associated with the underwriting of new business, including commission paid to brokers and agents (and to the cedant company in the case of reinsurance)
Acquisition Costs
All expenses directly related to acquiring insurance or reinsurance accounts; i.e., commissions paid to agents, brokerage fees paid to brokers, premium taxes and expenses associated with marketing, underwriting, contract issuance and premium collection.****Insurer’s/Reinsurer’s cost of securing business including commission to Agents and brokers and other marketing expenses. It also can be accounting charge for placing a new Policy as on Insurer’s books.
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The expense undertaken to acquire new business. The concept applies to both agents and companies. The largest portion of an insurer’s acquisition cost is agent’s or sales representative’s commission or bonus.
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Expenses incurred by an insurer in obtaining new business and issuing policies. Commission to intermediaries accounts for the largest portion of acquisition costs.
Acquittal
To declare not guilty of a charge: to exonerate.
Acre-foot
The amount of water needed to cover one acre of land in water 1 foot deep.