Cancellation  :: The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. 

 

Captive Insurance Company  :: A company owned solely or in large part by one or more non- insurance entities for the primary purpose of providing insurance coverage to the owner or owners. 

 

Cargo Insurance  :: Type of Transit insurance that protects the shipper of the goods against financial loss if the goods are damaged or lost. 

 

Case Management :: A system of coordinating medical services to treat a patient, improves care, and reduce cost. A case manager coordinates health care delivery for patients.

 

Cash against Document (CAD)  :: Method of payment for goods for export, whereby the documentation for a shipment is sent to an agent or bank at the destination. These are passed to the consignee, who makes the payment. The consignee is free to take delivery of the shipment when it arrives. 

 

Catastrophe Cover  :: Type of re-insurance on an excess of loss basis to protect against an accumulation of losses arising from one event. 

 

Catastrophe reinsurance  :: This is a form of aggregate excess of loss reinsurance providing coverage for very high aggregate losses arising from a single event, which may be spread over a number of hours; 24 or 72 hours is common. 

 

Catastrophe Risk  :: In insurance, an exceptional loss for example, resulting from a flood or earthquake. 

 

Catastrophe  :: In the context of general insurance a catastrophe is a single event which gives rise to exceptionally large losses. The exact definition often varies and is often dependent on excess of loss wordings e.g. it might mean all losses, in a 72 hour period, arising from a wind storm. 

 

CEDE :: To transfer to a reinsurer all or part of the insurance or reinsurance risk written by a ceding company.

 

Central fund (Lloyd's)  :: A contingency reserve built up from contributions by Lloyd's Names and held by Lloyd's as a layer of protection for policyholders. 

 

Certificate of Insurance  :: A statement of coverage issued to an individual. it is a proof of insurance. Generally, it is issued for Motor and Marine insurances. 

 

Certificate of Motor Insurance  :: Document that confirms the existence of a valid motor insurance policy. It must state the name of the policyholder, the registration no. of the vehicle, dates of commencement and expiry of the insurance, the person or persons insured to drive the vehicle, and any limitations on use. The form should be as per Motor Vehicles Act, 1988. 

 

Cession  :: Amount of the insurance ceded to a reinsurer by the original insuring company in a reinsurance operation. 

 

Claim amount distribution  :: A statistical frequency distribution for the amounts of claims. 

 

Claim frequency  :: The number of claims in a period per unit of exposure, such as, the number of claims per vehicle year for a calendar year or per policy over a period. 

 

Claim  :: A request by a policyholder for payment following the occurrence of an insured event. A claim does not necessarily lead to a payment. 

 

Claim-made policy  :: Insurance Policy in which the insurer must meet only claims made during the time cover is provided (irrespective of when the loss occurred). 

 

Claims incurred  :: Claims that have occurred, irrespective of whether or not they have been reported to the insurer. 

 

Coinsurance  :: A method of sharing a risk among a number of direct insurers, each of which has a separate direct contractual relationship with the  insured and is, therefore, liable only for its own contractual share of the total risk. The term is also used in certain excess of loss contracts to refer to the proportion of claims retained by the cedant. 

 

Co-insurance  :: Method of sharing insurance risk between several insurers. The policyholder will deal as a lead insurer who issues documents and collects premiums. The policy will detail the shares held by each company. 

 

Commercial Lines  :: Insurance of businesses, organizations, institutions, governmental agencies, and other commercial establishments. 

 

Commercial Umbrella :: A liability policy designed to cover catastrophic losses.

 

Commission  :: The part of an insurance premium paid by the insurer to an agent or broker for his services in procuring and servicing the insurance. 

 

Composite insurer  :: A single insurance company writing both life and non-life business. 

 

Comprehensive Coverage :: Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.

 

Concealment  :: Deliberate failure of an applicant for insurance to reveal a material fact to the insurer. 

 

Concurrent Causation :: A legal doctrine that says if two perils (one excluded and one not excluded) occur and cause a loss, coverage applies.

 

Conditions  :: Provisions inserted in an insurance contract that qualify or place limitations on the insurer's promise to perform. 

 

Consequential loss  :: Insurance cover for financial losses arising following damage (e.g. a fire) to business premises. 

 

Consequential Losses :: Losses other than property damage that occur as a result of physical loss to a business for example, the cost of maintaining key employees to help reorganize after a fire.

 

Consideration  :: In some forms of contract, the agreement is made binding by the payment of a sum of money from one party to the other. Such a payment is known as a consideration. The term is also used informally to mean any form of payment. 

 

Consignment  :: Shipment of goods sent to someone for example, an agent, usually so that he or she may sell them for the consignor. 

 

Contract  :: A binding agreement between two or more parties for the doing or not doing of certain things. A contract of insurance is embodied in a written document called the policy. 

 

Contractor’s All Risks  :: Type of insurance that provides compensation to contractor in the event of damage to construction works from a wide range of perils. 

 

Contractual Liability  :: Legal liability of another party that the business firm agrees to assume by a written or oral contract. 

 

Contribution  :: It is a team insurance in which a risk has been insured twice over, and each insurance company shares the costs of a claim payment. 

 

Contributory Negligence  :: Lack of care in looking after something that reduces the value of damages or an insurance payment in the event of a claim being made. 

 

Cover note  :: A note issued by an insurance company to confirm the existence of insurance cover pending the issue of formal policy documentation. An cover note is particularly useful where the policyholder is under a statutory obligation to be covered by insurance and may be required to show evidence of cover, for example third party motor insurance. 

 

Crop-Hail Insurance :: Protection against damage to growing crops because of named perils.

 

Cross Liability Endorsment  :: In the event of claim by one insured for which another insured covere by the same policy may be held liable, this endorsement covers the insured against whom the claim is made in the same manner as if separate policies had been issued.