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Adjustment |
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Adjustment 1. A tax deduction taken on a loss, especially on bad debt or accounts receivable that will likely not be collected. One is not liable for income that is not actually realized. 2. In insurance, a payment on a claim. For example, if one has homeowner's insurance and his/her house floods, he/she is entitled to an adjustment, so long as the insurance covers flooding. Arriving at the amount of the adjustment is a complex process and insurance companies employ full-time adjusters to investigate claims and determine what amount, if any, the adjustment should be. 3. In an adjustable-rate mortgage, a change in the interest rate paid on the mortgage. The adjustment may be upward or downward. See also: Adjustment frequency. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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