Glossary

A

Accident & Health
Class of insurance including two main types of business - personal accident and medical expenses.

Act of God
An event, which is not the fault of any individual. Acts of God may or may not be insurable.

Actuary
A professional qualified to apply principles to solving financial problems, normally in connection with pensions, life insurance and investment.

Additional Voluntary Contributions
Additional contributions made by pension scheme members to top up their eventual retirement income.

Agent
Someone who acts for one or a number of companies, particularly in selling insurance.

All Risks
Wider cover than given under a normal property insurance policy. Covers any loss or damage apart from exclusions stated in the policy. This usually applies to items being insured outside of the home.

Average
A policy condition requiring the amount of a claim payment to be reduced proportionately if the policyholder has not insured their property for the full amount of its value or replacement cost. For example if you have insured a £100,000 home for £50,000 and suffer a total loss, an insurer can apply the law of average and pay you just £25,000.