Cancellable Policy ...
A policy which may be cancelled by the insurance company during the effective policy period by giving advance notice and reason for cancellation to the Insured, in keeping with State requirements, and refunding the unearned premium.
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Cancellation ...
Termination of an insurance policy by the Insured or the insurance company during the effective policy period.
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Capacity ...
The amount of insurance that an insurance company is able to assume on a particular risk.
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Capital Stock Insurance Company ...
An insurance company that is owned by stockholders.
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Captive Agent ...
An insurance agent who markets and sells insurance policies for a specific insurance company. (See also, Exclusive Agent.)
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Captive Insurer ...
An insurance company set up by a company or group of companies to insure their own property or property held in common.
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Cargo Insurance ...
Ocean Marine insurance that insures against loss of goods while they are shipped on watercraft.
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Carrier ...
The insurance company who underwrites the insurance policy.
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Casualty Insurance ...
Insurance primarily concerned with the legal liability for losses that involve injury or property damage of others.
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Catastrophe ...
A natural disaster that causes an extraordinary amount of loss in a widespread area.
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Catastrophe Reinsurance ...
Reinsurance that covers losses of an insurance company in excess of their gross retention.
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Causes of Loss Form ...
A form that is part of a Commercial Property policy which lists covered perils and exclusions.
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Cede ...
To transfer a portion of the underwritten risk an insurance company writes to a reinsurance company for a premium.
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Certificate of Insurance ...
Verification from an insurance company that coverage is being provided to the Insured.
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Cession ...
The percentage of risk passed to a reinsurance company by an insurance company.
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Chartered Property Casualty Underwriter ...
A distinctive title conferred in recognition of consistently meeting high standards of proficiency in property and casualty underwriting.
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Claim ...
A request for payment to repair or replace property damaged by a covered peril.
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Claim Frequency ...
The number of claims paid per 100 exposures in the same category.
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Claim Severity ...
The average loss payment per claim.
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Claim Adjuster ...
A person who investigates loss, applies policy provisions and settles claims. (See also, Adjuster, Independent Adjuster.)
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Claimant ...
The person who sustained injury, or property damage from an Insured. (See also, Injured Party, Third Party.)
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Claims-Made Form ...
Commercial General Liability coverage form that provides for loss payment on a Bodily Injury or Property Damage claim made against the Insured during the effective policy period.
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Classes ...
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Classification ...
To compare property to similar properties with the same general characteristics for rating and underwriting purposes.
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Coinsurance ...
A condition in a property insurance policy that requires an Insured to pay a part of the loss if the amount of insurance carried on the property is less than a specified percentage of the property value.
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Coinsurance Penalty ...
The dollar amount not paid by the insurance company on an insured loss because the Insured did not comply with the coinsurance condition.
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Collision Coverage ...
Coverage for the Insured automobile against damage caused by upset or collision with an object.
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Combined Ratio ...
The sum of the ratio of losses incurred to premium earned and the ratio of commissions and expenses incurred to premium written.
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Combined Single Limit ...
A limit on liability coverage that combines both Bodily Injury and Property Damage into one aggregate amount. (Also known as, Single Limit.)
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Commercial Auto Coverage Part ...
The part of a Commercial policy that provides liability and physical damage coverage for the automobiles of a business.
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Commercial Crime Coverage ...
The part of a Commercial policy that provides coverage for losses arising from unlawful acts perpetrated against a business. (See also, Forgery or Alteration Crime Form, and Theft, Disappearance and Destruction Coverage Form.)
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Commercial General Liability Coverage Part ...
The part of a Commercial policy that provides liability coverage for a business. (See also, Occurrence Form.)
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Commercial Inland Marine Insurance ...
A type of insurance generally covering articles that may be transported from place to place.
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Commercial Package Policy ...
Policy package for businesses developed by ISO. Coverage includes two or more of the following: Boiler and Machinery, Commercial Auto, Commercial Crime, Commercial General Liability, Commercial Property, Commercial Inland Marine, Farm.
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Commercial Property Coverage Part ...
The part of a Commercial package policy that provides coverage for business personal property and business real property.
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Commission ...
A percentage of an insurance premium paid to an insurance agent or broker for selling and servicing an insurance policy.
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Commissioner of Insurance ...
The head official presiding over a state insurance department. Also known as Insurance Director or Insurance Superintendent. (See also, Insurance Commissioner.)
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Common Policy Conditions ...
A required form that is part of the Commercial package policy which contains conditions that apply to all of the policy coverages.
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Comparative Negligence ...
The responsibility for damages is reduced based on the extent of negligence the injured party contributed to their own loss.
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Compensatory Damages ...
A loss payment that reimburses an injured party for damages that were actually sustained.
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Competent Parties ...
In order for a contract to be valid it must be made between parties who are considered legally competent.
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Comprehensive Automobile Insurance ...
Provides coverage against loss resulting from damage to the insured automobile.
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Comprehensive Personal Liability Insurance ...
Protection against loss arising out of the legal liability of an Insured to pay money for damage or injury caused to others.
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Compulsory Auto Liability Insurance ...
The minimum automobile liability coverage required by law in some states for a motorist to carry.
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Concealment ...
The willful withholding of material information which could determine whether an insurance policy is issued or a loss claim is paid.
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Conditional Contract ...
A contract that has conditions which must be satisfied before the agreement is finalized.
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Conditions ...
An article or clause of an insurance policy introducing a contingency that states the rights and responsibilities of both the Insured and the Insurer.
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Condominium Association Coverage Form ...
Commercial policy coverage for buildings in a condominium complex.
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Consequential Loss ...
Loss that occurs as a result or consequence of an insured direct loss. (See also, Indirect Loss.)
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Consideration ...
Something of value exchanged for the performance agreed upon in a contract.
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Contents ...
Generally moveable and transportable property contained within the structure or vehicle that sustained loss from a covered peril. (See also, Personal Property.)
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Contingent Liability Insurance ...
Covers the Insured in cases of Indirect Liability for an accident.
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Contract ...
There are four components that comprise a contract: 1) both parties must be legally capable; 2) the agreement must be mutual; 3) there must be valid consideration; and 4) the satisfaction of any condition that would invalidate the contract.
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Contract of Adhesion ...
The Insured adheres to policy provisions pre-determined by the Insurer.
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Contributory Negligence ...
Carelessness on the part of the injured person that contributed to the accident.
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Cost to Repair ...
An amount that is often the basis for determining a loss payment.
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Countersignature ...
Signature of a licensed insurance agent that may be required on a policy to validate it.
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Coverage ...
The protection provided by an insurance policy.
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Coverage Form ...
Document that contains all the agreements, conditions, coverages and exclusions of a policy. (See also, Policy Form.)
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Coverage Territory ...
The defined location where coverage provided by a policy applies.
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Covered Loss ...
The covered property that sustained damaged from a covered peril.
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Covered Peril ...
The perils an Insured is protected against loss from.
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Customer Service Representative ...
A person who supports an insurance agent by assisting customers and processing paperwork.
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