The hybrid accretion-disk (HAD) model links the two characteristic components of AGN spectra – the UV bump and the X-ray power-law – in the framework of one physical model. The radially stratified hybrid disk is a self consistent combination of a thin, cool accretion disk at large radii, with an inner hot two-temperature disk. Its spectrum consists of three components, corresponding to the three radial disk regions: a blackbody thermal spectrum from the outer cool disk, a Comptonized soft photon power-law spectrum from the intermediate region, and a thermal Comptonized bremsstrahlung spectrum from the inner region. The dependence of the hybrid disk spectrum on the accretion rate and on other parameters is discussed and applied to AGN spectral evolution, and in particular to explaining the cosmic X-ray background by AGN.