Glossary of Insurance Terms

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Actual cash value (ACV)

The value of the property when it is damaged or destroyed. This is usually figured by taking the replacement cost and subtracting depreciation.

Actual charge

The amount of money a doctor or supplier charges for a certain medical service or supply. This amount is often more than the amount Medicare approves.

Additional living expenses

If your home is so damaged that you are unable to live there, most homeowner insurance policies pay for some additional living expenses while repairs are being made. This could include limited motel, restaurant, and warehouse storage expenses.

Adjuster

An insurance company representative who seeks to determine the extent of the firm's liability for loss when a claim is submitted.

Administrative services only (ASO)

An arrangement whereby an organization (usually an employer) hires an outside firm to perform specific administrative services, such as providing claim forms and processing claims, for a group health insurance program. The organization retains financial responsibility for paying claims.

Adult day care

Care given in a nonresidential facility, community-based group program designed to meet the needs of functionally impaired adults. It is a structured, comprehensive program that may provide a variety of health, social, and related support services during any part of a day.