- Cafeteria Benefit Plan: arrangement
which employees may select their own employee benefit structure.
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- Cancelable: A contract of insurance
that may be terminated during the policy term by the insurer
or insured at any time.
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- Cancellation: Termination of
a policy in force by a voluntary act of the insured or insurer.
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- Cancellation Clause: A provision
in an insurance contract that permits an insurance company
or insured to cancel a policy at any time before its expiration
date.
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- Capacity: The largest amount
of insurance or reinsurance available from a company.
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- Capital Retention Approach:
A method used to estimate the amount of life insurance to
own. Under this method, the insurance proceeds are retained
and are not liquidated.
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- Capital Sum: The maximum lump
sum payment payable in the event of an accidental death
or dismemberment.
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- Capitation: A method of payment
for health services in which a physician or hospital is
paid a fixed, per capita amount for each person served regardless
of the actual number of services provided to each person.
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- Captive Agent: A licensed agent
who sells insurance for only one company.
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- Captive Insurance Company: A
company formed to insure the risks of a parent company.
This is usually done when business insurance for a certain
commercial risk cannot be obtained through markets.
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- Cargo Insurance: An insurance
policy protecting cargo being transported by carrier.
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- Cash Surrender Value: The amount
of money received when the policyowner surrenders a life
insurance policy with cash value.
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- Casualty Insurance: The type
of insurance concerned with the legal liability for losses
caused by injury to others or damage to property of others.
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- Catastrophe: An event which
loss is of extraordinary magnitude, such as a hurricane
or tornado.
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- Causes of Loss Form: Commercial
property forms stating the perils insured against, additional
coverage's, and exclusions that may apply to your policy.
It is important to read your policy.
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- Cede: The transfer of all or
part of a risk written by an insurer to a reinsurer.
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- Certificate of Insurance: A
document issued to a member of a group insurance plan, outlining
the insurance benefits and principal provisions of the policy.
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- Claim: A request by the insured
for indemnification by the insurance company for a loss
that is a covered peril.
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- Claims Made Policy: A liability
insurance policy under which a written claim is made during
the policy period or any extended reporting period..
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- Class Rating: A rate applied
to those risks that are similar.
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- Clause: In an insurance policy,
sentences and paragraphs describing coverage's, exclusions,
duties of an insured, and termination of coverage, and other
such parts of the insurance policy.
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- Coinsurance: Two meanings here:
(1) In property insurance, a clause that states the insured
will share in losses to the extent that he is underinsured
at the time of loss, (2) In medical insurance, the insured
person and the insurer share the covered procedures under
a policy in a specified ratio (80 percent by the insurer
and 20 percent by the insured). Collision Insurance: A form
of automobile insurance, provides protection against loss
resulting from any damage to the policyowner's car caused
by collision with another vehicle or object, (or by upset
of the insured car), whether it was the insured's fault
or not.
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- Combined Ratio: A measure of
the dollars spent for claims and expenses and premium dollars
taken in.
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- Commercial General Liability Policy
(CGL): Provides separate limits of general liability,
fire legal liability, medical payments, products and completed
operations, and advertising and personal liability.
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- Commercial Lines: Insurance
for businesses, professionals, and commercial establishments.
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- Commercial Package Policy (CPP):
A commercial insurance policy that is designed to meet specific
insurance needs of businesses.
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- Completed Operations Insurance:
A type of insurance that cover's a contractor's liability
for accidents arising out of jobs or operations that was
completed by the contractor.
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- Comprehensive Major Medical Insurance:
A health insurance policy that has a low deductible, high
maximum benefits, a coinsurance feature, and may feature
a copayment.
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- Comprehensive Personal Liability
Insurance: Provides individuals and family members with
protection from legal liability for most accidents caused
by them in their personal lives. Note that any legal liability
claims submitted while in the course of business activities
are not covered.
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- Compulsory Insurance: Any form
of insurance which is required by law.
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- Concealment: Failure of an applicant
for insurance to reveal a material fact to the insurance
company.
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- Conditional Binding Receipt:
A receipt given for premium payments accompanying an application
for insurance.
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- Conditionally Renewable: Provision
in a health insurance policy which the company cannot cancel
the policy during its term, but may refuse to renew under
certain conditions stated in the policy.
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- Conditions: Provisions stated
in an insurance contract that state the rights and duties
of the insured, or the rights and duties of the insurer.
Typical duties have to do with the insured's duties after
a loss, cancellation provisions, the insurance companies
right to inspect damaged property.
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- Condominium Unit Owners Coverage
Form: A commercial property form designed to cover the
needs of commercial condominium unit owners.
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- Confining: A disability or sickness
that confines an insured indoors.
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- Consideration: One of the elements
that make up an insurance contract, consideration is the
offer made by the insurance company to the insured for payment
of the premium and the statements made by the prospective
policyholder on their application.
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- Consequential Loss: A financial
loss occurring as the result of some other loss. Also known
as an indirect loss.
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- Construction Bond: This bond
will protect the owner of a building or other structure
should the contractor be unable to fulfill his contractual
duty to the insured. In such a case, the insurer is obligated
to see that the work is completed.
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- Contingent Annuity: An annuity
that is payable upon a contingent occurrence or event, such
as death of a person (spouse) to the annuitant.
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- Contingent Beneficiary: A person
designated to receive policy benefits if the primary beneficiary
is deceased at time benefits are payable..
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- Contingent Liability: Any liability
arising out of work done by independent contractors for
a firm. The firm could be liable for the work done by an
independent contractor if the activity is illegal, the situation
did not permit delegation of authority, or the work is inherently
dangerous.
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- Contract: An agreement between
the insurer and the insurance company that provides a legally
enforceable obligation to provide benefit payments for all
premium amounts received.
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- Contract Bond: A bond used to
guarantee the performance of a construction contract and
the payment of all materials and labor bills.
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- Contractual Liability Insurance:
Provides protection to the insured in the event a loss occurs
for which liability is assumed, express or implied, under
a written contract.
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- Contributory: A general term
used with group health insurance plans in which the employee
pays a portion of the premium.
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- Contributory Negligence: A "law"
of principle that states a person may have contributed to
their own injury.
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- Conversion Privilege: A privilege
granted in a group life or group health insurance policy
to convert to a different plan of insurance without providing
evidence of insurability and a medical exam.
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- Conversion Privilege: A right
given to an insured person who can change insurance without
evidence of medical insurability, usually to an individual
policy upon termination of coverage, under a group contract.
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- Convertible Term Insurance:
Term insurance which can be exchanged into a permanent policy
without evidence of insurability or a medical exam.
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- Coordination of Benefits (COB):
Used in group health insurance, this distinguishes the order
that two or more insurance companies will pay benefits for
the same claim.
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- Copay: An arrangement where
the insured pays a specified amount for various services
and the health carrier pays the remaining charges.
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- Cost Basis: An amount of money
that has already been taxed, used in taxation of investment
money.
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- Cost of Living Rider: Adjusts
life insurance policy benefits in relation to changes in
the Consumer Price Index (CPI).
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- Crop-Hail Insurance: Protection
against damage to growing crops as a result of named perils.
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- Cross Purchase Agreement: Agreement
that specifies the terms and conditions for the surviving
partners or shareholders to buy a deceased's share of a
business's ownership.
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- Currently Insured Status: A
Social Security provision under which the family of a deceased
worker may receive survivor benefits.
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- Custodial Care: Care that is
needed for a person that cannot dress, eat, or perform other
personal needs that requires someone to assist them.
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