alternate settlement option: An option a mortgage insurer can exercise in settling a claim in which it pays the entire amount of the claim, including applicable legal, foreclosure, and repossession expenses, generally before the home goes to foreclosure. The insurer exercising this option has no possibility of recovery even if the subsequent sale of the home yields proceeds in excess of the exposure of the lender or investor.
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alternate delivery system: Health services that are more cost-effective than inpatient, acute-care hospitals, such as skilled and intermediary nursing facilities, hospice programs, and in-home services.
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allocated benefits: Maximum amount for specific services as itemized in an insurance contract.
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all-risks: “All Risks” property policies, often called “special” policies, cover any loss unless it is caused by an excluded peril listed in the policy.
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aggregate indemnity: The maximum amount that may be collected for any disability, or period of disability, under an insurance policy.
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aggregate exposure, net: Gross aggregate exposure less exposure ceded to reinsures.
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aggregate exposure, gross: Total outstanding insured principal and interest.
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agent: An authorized representative of an insurance company who sells and services insurance contracts. See producer, exclusive agent, independent agent.
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agency underwriter: See administrative assistant.
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age limits: Ages below and above which an insurance company will not accept applications or renew policies.
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