Please choose the letter you wish to define:
- Cafeteria Benefit Plan:
An arrangement which employees may select their own
employee benefit structure.
A contract of insurance that may be terminated during the policy
term by the insurer or insured at any time.
Termination of a policy in force by a voluntary act of the insured
- Cancellation Clause:
A provision in an insurance contract that permits an insurance
company or insured to cancel a policy at any time before its
The largest amount of insurance or reinsurance available from an
- 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
- Capital Sum:
The maximum lump sum payment payable in the event of an
accidental death or dismemberment.
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
- Captive Agent:
A licensed insurance agent who sells insurance for only one
- 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.
- Cargo Insurance:
An insurance policy protecting cargo being transported by
- Cash Surrender Value:
The amount of money received when the policyowner surrenders
a life insurance policy with cash value.
- Casualty Insurance:
The type of insurance concerned with the legal liability for losses
caused by injury to others or damage to property of others.
An event which loss is of extraordinary magnitude, such as a
hurricane or tornado.
- Causes of Loss Form:
Commercial property forms stating the perils insured against,
additional coverages, and exclusions that may apply to your
policy. It is important to read your policy.
The transfer of all or part of a risk written by an insurer to a
- Certificate of Insurance:
A document issued to a member of a group insurance plan,
outlining the insurance benefits and principal provisions of the
A request by the insured for indemnification by the insurance
company for a loss that is a covered peril.
- Claims Made Policy:
A liability insurance policy under which a written claim is made
during the policy period or any extended reporting period.
- Class Rating:
A rate applied to those risks that are similar.
In an insurance policy, sentences and paragraphs describing
coverages, exclusions, duties of an insured, and termination of
coverage, and other such parts of the insurance policy.
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.
- Combined Ratio:
A measure of the dollars spent for claims and expenses and
premium dollars taken in.
- 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.
- Commercial Lines:
Insurance for businesses, professionals, and commercial
- Commercial Package Policy (CPP):
A commercial insurance policy that is designed to meet specific
insurance needs of businesses.
- Completed Operations Insurance:
A type of insurance that covers a contractor's liability for
accidents arising out of jobs or operations that were completed
by the contractor.
- Comprehensive Major Medical Insurance:
A health insurance policy that has a low deductible, high
maximum benefits, a coinsurance feature, and may feature a
- 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.
- Compulsory Insurance:
Any form of insurance which is required by law.
Failure of an applicant for insurance to reveal a material fact to
the insurance company.
- Conditional Binding Receipt:
A receipt given for premium payments accompanying an
application for insurance.
- 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.
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, and the insurance companies right to inspect
- Condominium Unit Owners Coverage Form:
A commercial property form designed to cover the needs of
commercial condominium unit owners.
A disability or sickness that confines an insured indoors.
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.
- Consequential Loss:
A financial loss occurring as the result of some other loss. Also
known as an indirect loss.
- 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.
- Contingent Annuity:
An annuity that is payable upon a contingent occurrence or
event, such as death of a person (spouse) to the annuitant.
- Contingent Beneficiary:
A person designated to receive policy benefits if the primary
beneficiary is deceased at time benefits are payable.
- 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
An agreement between the insurer and the insurance company
that provides a legally enforceable obligation to provide benefit
payments for all premium amounts received.
- Contract Bond:
A bond used to guarantee the performance of a
construction contract and the payment of all materials and labor
- Contractual Liability Insurance:
Provides protection to the insured in the event a loss occurs for
which liability is assumed, expressed or implied, under a written
A general term used with group health insurance plans in which
the employee pays a portion of the premium.
- Contributory Negligence:
A "law" of principle that states a person may have contributed to
their own injury.
- 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.
- Convertible Term Insurance:
Term insurance which can be exchanged into a permanent policy
without evidence of insurability or a medical exam.
- 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
An arrangement where the insured pays a specified amount for
various services and the health carrier pays the remaining
- Cost Basis:
An amount of money that has already been taxed, used in
taxation of investment money.
- Cost of Living Rider:
Adjusts life insurance policy benefits in relation to changes in the
Consumer Price Index (CPI).
- Crop-Hail Insurance:
Protection against damage to growing crops as a result of named
- Cross Purchase Agreement:
Agreement that specifies the terms and conditions for the
surviving partners or shareholders to buy a deceased's share of a
- Currently Insured Status:
A Social Security provision under which the family of a
deceased worker may receive survivor benefits.
- Custodial Care:
Care that is needed for a person that cannot dress, eat, or
perform other personal needs that requires someone to assist
Please choose the letter you wish to define:
Insurance Glossary is Copyrighted By Richard H. Reynolds.
Insurance Network of America Uses This Glossary By Permission.
Important Note: This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits and losses not covered, be sure to read the policy, including all endorsements.