What Is an Accessory Dwelling Unit (ADU)? An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger, primary home. The unit cannot be bought or sold separately, but they are often used to provide additional income through rent or to
What Is an Accidental Death Benefit? Accidental death benefit is a payment due to the beneficiary of an accidental death insurance policy, which is often a clause or rider connected to a life insurance policy. The accidental death benefit (ADB) life insurance policy usually pays in addition to the standard benefit payable if the insured died of
What is an Accidental High Yielder? Accidental high yielder describes a company that pays an abnormally high dividend yield due to a decline in its stock price. The dividend the company pays remains the same, though its stock has declined. Because companies typically adjust their dividend policy once a year and pay dividends quarterly, if
What Is Accidental Death and Dismemberment (AD&D) Insurance? Accidental death and dismemberment (AD&D) insurance is insurance—usually added as a rider to a health insurance or life insurance policy—that covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss, or the loss of use, of body parts or functions (e.g., limbs, speech, eyesight, and hearing).
What Are Accident and Health Benefits? Accident and Health Benefits are a type of health insurance policy that is purchased by companies on behalf of their employees. They are intended to supplement the standard health insurance policy offered to employees, by providing protection for accidents that might occur within the workplace. Key Takeaways Accident and
What Is Accommodation Trading? Accommodation trading is a type of trading in which one trader accommodates another by entering into a non-competitive purchase or sale order. The instance of accommodation trades often happens when two traders are participating in illegal trading. Certain types of accommodation trades can also be known as wash sales. Key Takeaways Accommodation trading
What Is Accord and Satisfaction? An accord and satisfaction is a legal contract whereby two parties agree to discharge a tort claim, contract, or other liability for an amount based on terms that differ from the original amount of the contract or claim. Accord and satisfaction is also used to settle legal claims prior to
What Is an Accommodative Monetary Policy? Accommodative monetary policy, also known as loose credit or easy monetary policy, occurs when a central bank (such as the Federal Reserve) attempts to expand the overall money supply to boost the economy when growth is slowing (as measured by GDP). The policy is implemented to allow the money
What Is an Absolute Auction? An absolute auction is a type of auction in which the sale is awarded to the highest bidder. Absolute auctions do not have a reserve price, which sets a minimum required bid for the item to be sold. Key Takeaways Absolute auctions are a popular type of auction, especially for
What Is an Absolute Beneficiary? An absolute beneficiary is a designation of a beneficiary that can not be changed without the written consent of that beneficiary. This term is often used in connection with an insurance policy when a beneficiary is named. The terms of the policy or agreement will specify whether the beneficiary is
