hands-on assistance. For long-term care (LTC) insurance, the actual physical assistance provided to a person who is in the course of performing activities of daily living. See also activities of daily living and substantial assistance.

HCFA. See Health Care Financing Administration.

head office. See home office.

Health Care Financing Administration (HCFA). In the United States, the division of the federal Department of Health and Human Services responsible for administering the Medicare and Medicaid programs. See also Medicaid and Medicare.

health insurance. A type of insurance coverage that provides benefits for an insured’s sickness, injury, or disability. See also disability income insurance, long-term care (LTC) insurance, and medical expense insurance.

Health Insurance Portability and Accountability Act (HIPAA). A U.S. federal law that imposes a number of requirements on group and individual health insurance plans, health insurers, and health maintenance organizations (HMOs) and that is designed to improve the availability and portability of health insurance benefits. HIPAA establishes federal standards for the continuation of health care benefits for people who change jobs, are
self-employed, or who have preexisting medical conditions.

health maintenance organization (HMO). A health care plan that combines the financing and delivery of health care to provide comprehensive health care services for subscribing members in a particular geographic area in exchange for a prepaid fee.

Health Maintenance Organizations (HMOs) Model Act. A National Association of Insurance Commissioners (NAIC) model law that regulates all aspects of the organization and operation of HMOs conducting business in a state that has enacted such a law.

heaped commission system. An insurance sales commission system that features relatively high first-year commissions and lower renewal commissions.

hedging. An investment strategy that combines different types of securities in a given investment portfolio in order to reduce the overall riskiness of the portfolio’s asset mix.

high water mark method. A method for crediting excess interest to an equity-indexed annuity that involves comparing the value of the index at the beginning of the term of the contract with the highest value that the index reaches at certain points, usually contract anniversary dates, during the term.

HIPAA. See Health Insurance Portability and Accountability Act.

historical cost. In accounting and investing, the original purchase price of an asset.

history statement. In the underwriting of insurance, a statement from an attending physician concerning a specific health condition that a proposed insured has admitted as having on the insurance application.

HMO. See health maintenance organization.

home health care. For long-term care (LTC) insurance, skilled or nonskilled nursing care, physical therapy, and home health assistance provided by a state-licensed and/or Medicare-certified home health agency.

home office. An insurance company’s headquarters, where most of the functional areas—such as underwriting, claim administration, customer service, actuarial, marketing, accounting,
legal/compliance, and human resources—are located. See also regional office.

homeowner’s insurance. A type of insurance that protects an insured from the financial losses resulting from damage to the insured’s home or contents or resulting from being held liable for the losses of others suffered while on the insured’s property.

home service agent. A commissioned insurance sales agent who sells a range of products and provides specified policyowner services, including the collection of renewal premiums, within a specified geographic area. Also known as debit agent.

home service distribution system. A method of selling and servicing insurance policies through commissioned sales agents who sell a range of products and provide specified policyowner services, including the collection of renewal premiums, within a specified geographic area.

horizontal analysis. A type of financial statement analysis that involves calculating the absolute amount and the percentage of the increase or decrease in a specified financial statement from one reporting period to another. Contrast with vertical analysis.

hospice. A facility that specializes in the treatment of terminally ill people, typically providing the services of doctors and nurses to care for a patient and provide pain relief 24 hours a day.

hospice benefit. A health insurance policy benefit that provides for the payment of medical or nonmedical treatments for terminally ill insureds either at the insured’s home or at a designated medical facility. See also hospice.

hospital confinement indemnity coverage. A type of health insurance coverage that provides a flat benefit amount for each day an insured is hospitalized up to a predetermined number of days. The benefit does not vary according to the amount of medical expenses the insured incurs. For example, a policy might provide $20 per day for a period of at least 31 days during any hospital confinement.

HR 10 plan. See Keogh plan.

human resources. The function within a business organization that monitors the availability of qualified workers; recruits and screens applicants for jobs; helps select qualified employees; plans and presents appropriate orientation, training, and development for each employee; and administers employee benefit programs.