Insurance Terms

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0-9

H

Hazard
Health Maintenance Organization (HMO)
Health Savings Account (HSA)
Heir
Heirs and Assigns
High-3 Average Pay
Hold Harmless Agreement
Holding Period
Homestead Exemption
Hospice

Hazard

A circumstance that increases the likelihood or probable severity of a loss. For example, an unattended lit cigarette is a hazard that increases the likelihood of a fire.
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Health Maintenance Organization (HMO)

Health insurance plan that entitles individual members to an array of medical services provided by participating physicians, hospitals, and clinics.
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Health Savings Account (HSA)

Interest-bearing account into which a person contributes pre-tax earnings to pay for eligible healthcare-related expenses. The person can usually draw from the account by electronic funds transfer, special HSA debit card, or by applying for a reimbursement check. All of these methods are usually subject to verification that the expense is HSA eligible by providing receipts. HSA funds do not expire and are portable between employers. An HSA must be paired with a qualifying High Deductible Health Plan that meets IRS guidelines. Self-employed people are also eligible for HSAs.
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Heir

An individual who inherits some or all of the estate of a deceased person by virtue of being in the direct line of descent, or being designated in a will or by legal authority. The term is often applied to those who would inherit by will, deed, or operation of law.
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Heirs and Assigns

Heirs are individuals who inherit some or all of the estate of a deceased person by virtue of being in the direct line of descent, or being designated in a will or by a legal authority. Assigns or assignees is a broader term that includes anyone to whom property is, will, or may be assigned. An assign may receive property from an assignor by conveyance, descent, or an act of law.
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High-3 Average Pay

Any three consecutive years of creditable service, at the employee's highest compensation level, that is used to calculate a maximum retirement benefit.
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Hold Harmless Agreement

A clause in a contract in which one party agrees not to hold the other responsible for, or to protect the other from, any claims.
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Holding Period

Length of time an asset is held by its owner.
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Homestead Exemption

A state law provision that permits the home to be exempted from creditors claims.
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Hospice

Facility that provides short-term continuous care in a home-like setting for terminally ill people with a life expectancy of six months or less. Some health insurance plans cover hospice stay up to a certain limit with no deductible.
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