Looking at an insurance premium booklet can feel like looking at another language with acronyms and jargon that can make it hard to understand. Each sector of the insurance business has its own set of acronyms to cover situations, organizations and items related to that area. Your insurance guide should include a glossary of terms related to auto, healthcare, business and other types of insurance.
Auto, Home and Business Insurance Terms
Many common acronyms for auto insurance are related to safety features. ABS is an acronym for anti-lock braking system. Electronic brake distribution (EBD) electronically controls brake pressure and is replacing traditional braking valves. The ESP is the electronic stability program. It's also cited as VSA, DSC, and ESC in some insurance plans. When reading a home or property insurance plan, look for acronyms such as ACV (actual cash value) and DB&C (dwelling, building and contents).
Life, Medical & Travel Insurance
Common life insurance acronyms include ADB (accidental death benefit), AD&D (accidental death and dismemberment), ART (annual renewable term) and A&H (accident and health insurance). Medical insurance terms can include average weekly wage (AWW), Patient Protection and Affordable Care Act (ACA), ears, nose and throat (ENT) and certificate of insurance (COI). Travel insurance includes terms such as average length of stay (ALOS), all other perils (AOP) and alternative risk transfer (ART).