Sports Insurance Glossary : Letter A

Accident Medical Coverage - Coverage for medical expenses (doctor bills, ambulance, hospital, and medication bills) incurred as a result of an injury while participating in an insured activity. This is typically written on an excess basis over any other collectible medical insurance the injured person might have available to them. The coverage responds only to injuries sustained while that person is participating in your activities.

Accidental Death & Dismemberment - Coverage for the accidental death, or the loss of limb or limbs as a result of participation in an insured activity or event.

Aggregate - A limit, specified in the policy, that is the maximum total amount that the policy will pay for all losses sustained during the policy period. Aggregate limits typically appear in General Liability policies, but are not often used in property insurance, except with respect to certain catastrophic exposures such as earthquake or flood. There may be several aggregates within the policy. One is a coverage aggregate, while the other is a policy aggregate. The coverage aggregate is the most that particular coverage will pay for all losses incurred during the policy period. The policy aggregate is the most the policy will pay for all coverages for all losses incurred during the policy period.

Application - A questionnaire which is filled out by a person seeking a coverage quotation from an insurance company. The questionnaire contains information required by the insuring company to evaluate the risk, underwrite the exposure, and rate the hazards and coverages being requested. Applications are typically completed by the insured party, but the party's representative (agent or broker) may also complete the form on the party's behalf. There may be multiple applications, depending on the scope of the coverage being requested. Most applications, particularly in Personal Insurance, are actually attached to and made a part of the insured's policy (this is not the case with Property & Casualty policies issued by SportsInsurance.com, where the application is merely the means to obtain information, and not made a part of the policies we issue, but does apply to our Disability insurance programs).

Assumption of Risk - A contract under which one party's legal liability for damages is assumed by the other party to the contract.

Audit - An examination of the books of accounts, vouchers or other records of a person, corporation, firm or other organization for the purposes of ascertaining the accuracy or inaccuracy of the record ( in insurance, the rating base).

Automatic Additional Insured - A clause in the policy that extends coverage to specified persons or organizations who may be involved in your activities or operations, without you having to specifically request them by name. Typically these are landlords, lessors or equipment or municipalities. However, coverage will usually extend as their interest may appear in your activities or operations only.

Automobile Liability Coverage - Protection for the insured (you) against loss arising out of legal action (liability) when his/her auto injures others or damage their property (includes Bodily Injury Liability and Property Damage Liability).

Automobile Physical Damage - The Collision and Other Than Collision coverage provisions in the Automobile insurance policy.