That which depends on an uncertain event.
Tag: RAW
Aleatory Contract
“A contract is an aleatory contract when it meets one or both of two conditions. One condition is that the execution or performance under the contract depends on a contingency or random event that is beyond the control of either party to the contract. The other condition is that the sums paid by the contract parties to each other are unequal.*****MEDICAL: Insurance contracts are aleatory contracts and meet both conditions. The contract is executed when an unforeseen event takes place. Moreover, the insured may collect a sum much larger than the premium paid or may collect nothing for the premium paid. (See Unilateral Contract).”Agreement in which one of the parties may recover a larger value than the value lost, which is dependent on the occurrence of a future contingency.*****
Insurance contracts are Aleatory contracts, i.e., the obligation of at least one of the parties to perform is dependent upon chance. If the event insured against occurs, the Insurer will probably pay the insured a sum of money much larger than the premium. If the event does not occur, the Insurer will pay nothing.
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UK: Any form of contract involving chance. Insurance contracts involve chance if they are of an aleatory nature, but the legal requirements as to insurable interest prevent them from being used for wagering.
ALF
Abbreviation that means assisted living facility. See assisted living center (ALC).
Algorithm
Rule or procedure containing conditional logic for solving a problem or accomplishing a task. Guideline algorithms concern rules for evaluating patient care against published guidelines. Criteria algorithms concern rules for evaluating criteria compliance. Algorithms may be expressions in written form, graphic outlines, diagrams, and flow charts that describe each step in the work or thought process.
Alien
Individual not a citizen or national of the United States but belonging to another country or people; a foreigner. May be referred to as an immigrant when a person from another country comes to settle.
Alien (Insurer)
An insurer domiciled outside the United States and incorporated under the laws of any other country.
Alien carrier
See: alien insurer.
Alien company
See: alien insurer.
Alien Enemy
The term comprises (a) subject of a hostile stat, and (b) persons of any nationality carrying on business in a hostile state.
Alien Insurance Company
If an insurance company is incorporated in a country other than the U.S. but is doing business within the U.S., it is known as an alien insurance company. For example, Lloyds London is an alien insurance company in the U.S. Many states have additional financial and reporting requirements to ensure the company is solvent and reputable. The alien company may operate as an admitted or approved non-admitted insurer in a state as long as it meets the financial and reporting requirements for each.Additional types of insurance company designations are domestic and foreign. Since an insurance company is incorporated in only one state and in that state the company is known as a domestic insurance company. In all other states the company operates, it is known as a foreign insurance company. (See Domestic Insurance Company and Foreign Insurance Company for additional information).