Glossary of Insurance Terms

All

Annual "out-of-pocket" maximu

The most you will have to pay in any given year for all services received under an insurance policy. This amount includes copayments, coinsurance and deductibles. If you exceed this amount, the insurance company will pay all other expenses for the remainder for that year.

Annual election period (AEP)

An annual period during which Medicare beneficiaries may enroll in or disenroll from a Medicare Advantage plan. The AEP occurs November 15 through December 31 each year. The plan coverage becomes effective on January 1 of the coming year.

Annuity

An investment that provides an income over a specified period of time, often used as a device for retirement income.

Appeal

An appeal is a special kind of complaint you make if you disagree with any decision about your health care services. This complaint is made to your health plan. There is usually a special process you must use to make your complaint.

Application

A statement of information made by someone applying for insurance. The information gathered helps the insurance company assess whether the risk presented by the applicant is acceptable.

Appraisal

A review of a property claim to determine the value of a particular item, or the value of the loss to the damaged property.