Insurance Terms

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 Plan Flexible Spending Account

Central fund into which employees contribute pre-tax earnings to pay for health insurance premiums and uninsured medical costs. When the employee submits evidence of medical expenses paid out-of-pocket, he or she is reimbursed from the fund.
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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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