Insurance Term
American Depositary Receipt (ADR)
American Depositary Receipt (ADR) is a negotiable receipt issued by a US depositary bank that represents shares in a non-US company and allows those shares to trade in US markets.
The term is important when employers, trustees, insurers, or members choose funds, monitor performance, explain risk, or decide how savings should be invested over time. For example, a company pension committee may compare a growth fund, a bond fund, and a cash fund by looking at risk, expected return, time horizon, fees, and how each option fits the target investment mix. A practical way to read it is to ask: does this affect risk, return, liquidity, diversification, fees, or the time period over which the investment should be judged? The key is to read the term in context, because the same phrase can have a narrow technical meaning in a policy wording and a broader commercial meaning in everyday discussions. . In practice, two policies can use similar wording but produce different outcomes because limits, exclusions, definitions, endorsements, and local law change the final interpretation.
How to read it in your program
What does this term mean for us? Read “American Depositary Receipt (ADR)” in the exact context of your policy schedule, not just the headline definition.
Where does it bite? Limits, exclusions, definitions, endorsements, and local law shape the final outcome — even when the wording looks familiar.
Who can confirm it? Your broker can confirm how the term applies to your specific program, employees, and renewal cycle.
A note on context. The same word can carry a narrow technical meaning in policy wording and a broader commercial meaning in conversation. Two policies can use similar wording but reach different outcomes because limits, exclusions, definitions, endorsements, and local law shape the final interpretation. When in doubt, compare the term against your exact contract wording and ask your broker how it applies to your situation.
Where “American Depositary Receipt (ADR)” shows up at VIMA
Pages that explain how this works inside a live employee benefits programme.
Related terms
Terms that often appear alongside “American Depositary Receipt (ADR)” in a policy schedule.
Absolute OwnerAbsolute owner is the person or legal entity that has complete ownership rights over an asset, policy, account, or investment and can usually sell, transfer, assign, pledge, or surrender it without needing permission from another owner. In life insurance and employee benefit planning, identifying the absolute owner matters because policy rights can be different from beneficiary rights.Act Of GodAct of god is a natural event outside human control, such as an earthquake, flood, lightning strike, cyclone, or severe storm, that may trigger or be excluded from insurance depending on the policy wording. The term matters because insurance contracts, employee benefits, data handling, cross-border placements, and financial products are shaped by law, regulation, disclosure duties, governance standards, and enforcement risk.AdministratorAdministrator is a person, third-party firm, or internal team that handles day-to-day policy or scheme operations, including enrolment, documentation, billing, claims support, data updates, and member communications. The term describes how insurance and benefit products are sold, advised on, serviced, documented, and administered between customers, employers, insurers, intermediaries, and platforms. For example, a broker may collect exposure data, obtain quotes, compare insurer terms, explain exclusions, place the policy, and help the employer or risk manager resolve service issues during the year. A practical way to read it is to ask: who is authorised to advise, bind cover, receive money, maintain records, answer employee questions, and support claims? The key is to read the term in context, because the same phrase can have a narrow technical meaning in a policy wording and a broader commercial meaning in everyday discussions. . In practice, two policies can use similar wording but produce different outcomes because limits, exclusions, definitions, endorsements, and local law change the final interpretation. When in doubt, the safest approach is to compare the term with the exact contract wording and ask the broker, adviser, insurer, or administrator to confirm how it applies to the specific situation.Aggregate Limit Of IndemnityAggregate limit of indemnity is the total cap on indemnity available under a policy over the whole insurance period. Once the aggregate is exhausted, the policy may not respond further unless reinstatement applies. The term is common in complex corporate insurance programmes where a parent company, local subsidiaries, brokers, insurers, reinsurers, and regulators must coordinate coverage across borders. For example, a business with subsidiaries in India, Germany, and the UK may use a master policy, local admitted policies, and reinsurance support so that local compliance and global coverage intent are both addressed. A practical way to read it is to ask: which entity is insured locally, which policy pays first, which insurer carries the risk, and whether the arrangement is compliant in the country concerned? The key is to read the term in context, because the same phrase can have a narrow technical meaning in a policy wording and a broader commercial meaning in everyday discussions. . In practice, two policies can use similar wording but produce different outcomes because limits, exclusions, definitions, endorsements, and local law change the final interpretation.Annual Percentage RateAnnual percentage rate is a standardised yearly measure of borrowing cost that includes interest and certain charges, helping borrowers compare loans or credit terms. The term helps explain how the cost of insurance is calculated, who bears the first part of a loss, and how changes in exposure, benefits, claims experience, and market conditions affect renewal pricing. For example, if a company adds employees, raises policy limits, chooses a lower deductible, or experiences higher claims, the premium or contribution required at renewal may increase. A practical way to read it is to ask: how does this change the amount paid upfront, the amount retained by the insured, and the total cost of risk over the policy year? The key is to read the term in context, because the same phrase can have a narrow technical meaning in a policy wording and a broader commercial meaning in everyday discussions. . In practice, two policies can use similar wording but produce different outcomes because limits, exclusions, definitions, endorsements, and local law change the final interpretation. When in doubt, the safest approach is to compare the term with the exact contract wording and ask the broker, adviser, insurer, or administrator to confirm how it applies to the specific situation.Appointed RepresentativeAppointed representative is a person or firm that carries out regulated activities under the responsibility and oversight of an authorised principal firm, rather than holding its own direct authorisation. The term describes how insurance and benefit products are sold, advised on, serviced, documented, and administered between customers, employers, insurers, intermediaries, and platforms. For example, a broker may collect exposure data, obtain quotes, compare insurer terms, explain exclusions, place the policy, and help the employer or risk manager resolve service issues during the year. A practical way to read it is to ask: who is authorised to advise, bind cover, receive money, maintain records, answer employee questions, and support claims? The key is to read the term in context, because the same phrase can have a narrow technical meaning in a policy wording and a broader commercial meaning in everyday discussions. . In practice, two policies can use similar wording but produce different outcomes because limits, exclusions, definitions, endorsements, and local law change the final interpretation. When in doubt, the safest approach is to compare the term with the exact contract wording and ask the broker, adviser, insurer, or administrator to confirm how it applies to the specific situation.