Insurance and risk management terminology · MLC-0106

Insurance and risk management terms: C (449)

Cable Communications Policy Act of 1984 (CCPA)A piece of United States federal legislation that established a national framework for regulating the cable...
Calendar year experienceThe financial results of an insurance company or a specific policy measured over a standard calendar year...
California Information Privacy Act (SB 1386)A California state law, enacted in 2002, that was the first in the United States to mandate that...
Cancel and rewriteThe practice of terminating an existing insurance policy before its natural expiration date and immediately...
CancelableDescribing an insurance policy that either the insurer or the insured can terminate before its stated...
CancellationThe termination of an insurance policy by either the insurer or the policyholder before its natural...
Canine liability exclusionA provision in a homeowner's or renter's insurance policy that specifically denies coverage for claims...
CannabinoidA class of chemical compounds found in the cannabis plant that interact with cannabinoid receptors in the...
Cannabis (marijuana)A plant species whose leaves, flowers, and stems contain psychoactive compounds, primarily cannabinoids like...
CapA contractual limit on the maximum amount an insurer will pay for a covered loss or a series of losses within...
CapacityThe maximum amount of insurance coverage an insurer or the entire insurance market is willing and able to...
CapitalThe financial resources held by an insurer to support its operations and meet its obligations to...
Capital adequacyThe sufficiency of an insurer's financial resources to cover its liabilities and absorb potential losses, as...
Capital allocationThe process of assigning a firm's financial capital to its different business units, product lines, or...
Capital asset pricing model (CAPM)A financial model that calculates the expected return on an investment, given its systematic risk. It posits...
Capital at riskThe amount of an insurer's capital that is exposed to potential loss from adverse events or market...
Capital attributionThe process of assigning a portion of an insurer's total capital to specific business units, product lines...
Capital marketsFinancial markets where long-term funds are raised and traded, including equity and debt markets. Insurers...
Capital stockThe total amount of common and preferred shares issued by a stock insurance company, representing the...
Capital stock companyAn insurance company that is owned by its shareholders, who purchase shares of stock and expect a return on...
Capital structureThe specific mix of debt and equity an insurer uses to finance its assets and operations. This includes...
Capital sumA fixed amount of money paid out as a lump sum benefit under an insurance policy upon the occurrence of a...
Capitated feeA fixed payment made periodically by an insurer or health maintenance organization (HMO) to a healthcare...
Captain of the ship doctrineA legal principle, primarily in medical malpractice cases, that holds a surgeon or lead physician responsible...
CaptiveA wholly owned insurance company established by a non-insurance organization to underwrite its own risks and...
Captive agentsInsurance professionals who represent a single insurance company exclusively. They are contractually...
Captive facilityA structure created by a parent organization to insure its own risks, operating as a form of self-insurance...
Captive Insurance Companies Association (CICA)A global trade association dedicated to advancing the captive insurance industry through education, advocacy...
Captive management companyA professional firm that provides administrative, underwriting, and claims management services to a captive...
Captive value added (CVA)The financial and strategic benefits that a captive insurance company provides to its parent organization...
Car sharingAn arrangement where individuals access a fleet of vehicles for short-term use, paying based on time or...
Care, custody, or control (CCC)A common exclusion in liability insurance policies, stating that coverage does not apply to property that is...
Cargo insuranceCoverage that protects goods and merchandise while in transit, whether by land, sea, or air, against loss or...
Carmack amendmentA federal law that governs the liability of common carriers for loss or damage to goods transported in...
Carriage of Goods by Sea Act of 1936 (COGSA)A United States federal law that governs the rights and responsibilities of carriers and shippers for goods...
CarrierAn insurance company or underwriter that provides insurance coverage by issuing policies and assuming the...
Carryover provisionA clause in an insurance policy, particularly in health or dental plans, that allows a policyholder to apply...
Case lawThe body of law established by judicial decisions in specific cases, as opposed to laws created by statutes...
Case managementA collaborative process of assessment, planning, facilitation, and advocacy to meet an individual's health...
Case rateA predetermined, fixed payment amount for a specific medical procedure, diagnosis, or episode of care...
Cash balance pension plansA type of defined benefit pension plan that maintains individual accounts for each participant, similar to a...
Cash before coverA condition in an insurance transaction where the premium must be paid in full by the policyholder before the...
Cash callA reinsurance provision, called a cash call clause, that lets the ceding company claim and receive immediate...
Cash flow programAn insurance or risk financing arrangement designed to allow an insured to retain more control over their...
Cash flow return on investments (CFROI)A valuation model that assesses the economic profitability of a company by comparing its gross cash flow to...
Cash flow underwritingAn underwriting strategy where an insurer accepts risks with the expectation that investment income generated...
Cash refund annuityAn annuity contract that provides periodic payments for the annuitant's entire life. If the annuitant dies...
Cash surrender valueThe amount of money a policyholder receives if they voluntarily terminate a permanent life insurance policy...
Casualty Claim Law Associate (CCLA)A professional designation awarded by the American Educational Institute to individuals who have demonstrated...
Casualty Claim Law Specialist (CCLS)A professional designation awarded by the American Educational Institute, signifying advanced expertise in...
Casualty insuranceA broad category of insurance that primarily covers losses resulting from legal liability to third parties...
Cat bond liteA type of catastrophe bond with a simplified structure and lower issuance costs compared to traditional cat...
Catastrophe bondA type of insurance-linked security that transfers specific catastrophic risks, such as hurricanes or...
Catastrophe (CAT)A severe event that causes a large number of insurance claims and substantial financial losses, affecting a...
Catastrophe equity putA financial instrument that provides an insurer with the right to sell newly issued shares of its stock to...
Catastrophe planA structured framework developed by an organization to prepare for, respond to, and recover from major...
Catastrophe policyAn insurance policy providing high-limit coverage for exceptionally severe, low-frequency events such as...
Catastrophe reinsuranceA form of reinsurance that protects primary insurers from accumulation of losses arising from a single...
Catastrophe reservesFunds set aside by insurance companies to cover potential future losses from large, infrequent catastrophic...
Catastrophic lossA severe loss of extraordinary magnitude resulting from a single, devastating event that affects a large...
Category 3 waterWater that is grossly contaminated and can contain pathogenic or toxigenic agents, also known as black water...
Cause theoryA test courts use to count the number of occurrences under a liability policy by looking at the cause of the...
Causes of lossThe perils or events that trigger coverage under an insurance policy, leading to a claim for damages or...
Causes of loss formsStandardized forms in commercial property insurance that define the perils for which coverage is provided...
CedeTo transfer all or part of an insurance risk from a primary insurer (the ceding company) to a reinsurer. This...
Ceded premiumsThe portion of gross premiums that a primary insurer pays to a reinsurer in exchange for transferring a...
CedentThe primary insurance company that transfers all or part of its insurance risks to a reinsurer. The cedent...
Ceding commissionA commission paid by the reinsurer to the ceding company for the business transferred under a reinsurance...
Ceding companyThe primary insurance company that transfers all or part of its insurance risks to a reinsurer. This company...
Cell captiveA special purpose insurance company structured with a central core and multiple protected cells, each of...
Centers for Disease Control and Prevention (CDC)A federal agency within the United States Department of Health and Human Services that conducts and supports...
Centers for Medicare and Medicaid Services (CMS)A federal agency within the US Department of Health and Human Services that administers Medicare directly and...
Central Analysis Bureau report (CAB)A detailed risk assessment report on a commercial trucking company, used by insurance underwriters to...
Central collection pointA location where a waste generator consolidates regulated waste, such as medical or hazardous waste, brought...
Central tendencyA statistical measure that identifies a single value as representative of an entire distribution of data. It...
Certificate holderThe entity or individual named on a certificate of insurance as receiving proof of coverage for another...
Certificate of complianceA document issued by a regulatory body or an independent third party confirming that an entity or product...
Certificate of insuranceA document issued by an insurance company or its agent that verifies the existence and terms of an insurance...
Certificate of reinsuranceA document issued by a reinsurer to a ceding insurer, confirming the terms and conditions of a reinsurance...
CertificationsCertain activities (e.g., floodproofing design, V-Zone construction design, survey of building elevations...
Certified act of terrorismAn act that the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the...
Certified Risk Manager (CRM)A professional designation for individuals specializing in risk management, awarded by The National Alliance...
CessionThe act of transferring all or part of an insurance risk from a ceding insurer to a reinsurer. This process...
Cession numberA unique identifier assigned to an individual risk or a group of risks transferred from a ceding insurer to a...
Cession statementA periodic report provided by a ceding insurer to its reinsurer, detailing the risks that have been ceded...
Cestui que vieThe individual whose life is the measure for the duration of a life insurance or annuity policy. The policy...
Chain of titleThe chronological sequence of historical transfers of ownership, conveyances, and encumbrances of a property...
Chameleon carrierA motor carrier that attempts to evade safety regulations and enforcement by operating under different...
Change of beneficiary provisionA clause in a life insurance policy that grants the policyholder the right to alter the designated recipient...
ChannelingA legal principle, particularly in nuclear liability law, that makes one party exclusively liable for damages...
ChannelizationSee Alteration of a Watercourse.
Chaplain or priest malpracticeProfessional liability arising from negligence or misconduct by a chaplain or priest in the performance of...
Charitable immunityA legal doctrine that historically protected charitable organizations from liability for torts committed by...
CharterA formal document issued by a governmental authority that grants legal existence and defines the powers and...
Chartered Insurance Institute (CII)A professional body for the insurance and financial planning sectors, based in the United Kingdom but with a...
Chartered Life Underwriter (CLU)A professional designation for individuals specializing in life insurance and estate planning. The Chartered...
Chartered Property Casualty Underwriter (CPCU)A professional designation for individuals in the property and casualty insurance field, signifying expertise...
Charterers legal liability coverageProtection for a party that leases a vessel against claims arising from their use of the chartered ship. This...
Chemical, biological, radiological, nuclear weapon (CBRN)A category of weapons of mass destruction that inflict harm through chemical agents, biological toxins...
Chevron deferenceA former doctrine of United States administrative law, set out in a 1984 Supreme Court decision, under which...
Chief risk officer (CRO)A senior corporate executive responsible for identifying, analyzing, and mitigating the aggregate internal...
Children's Online Privacy Protection Act of 1998 (COPPA)A United States federal law that imposes requirements on operators of websites and online services directed...
Choice no-faultA type of automobile insurance system where policyholders have the option to choose between a traditional...
Chronic toxicityThe adverse effects resulting from long-term or repeated exposure to a substance, often at low doses. Unlike...
CircumstanceA fact or event that could reasonably be expected to give rise to a future claim under a claims-made...
CisternCovered cisterns and the water in them are defined as an integral part of an insurable building, meaning...
Civil Rights Act of 1991A United States federal law that amended several existing civil rights statutes to strengthen protections...
ClaimA formal request made by an insured to an insurance company for payment or reimbursement under the terms of...
Claim expenseThe costs an insurer incurs to investigate, evaluate, negotiate, and settle a specific claim, separate from...
Claim intakeThe initial stage of the insurance claims process where an insured or claimant reports an incident or loss to...
ClaimantThe individual or entity who files a claim with an insurance company, seeking payment or benefits under an...
Claims administratorA third-party entity or an internal department responsible for managing the processing and payment of...
Claims auditA systematic review and evaluation of an insurer's or third-party administrator's claims handling practices...
Claims cooperation clauseA provision in an insurance policy that obligates the insured to cooperate with the insurer in the...
Claims leakage (CL)The monetary value of claim payments that are higher than they should be due to inefficiencies, errors, or...
Claims reserveAn amount of money set aside by an insurance company to cover the estimated future cost of claims that have...
Claims-made and reported policyAn insurance policy that responds only when a claim is both first made against the insured and reported to...
Claims-made and reported provisionA clause in a liability insurance policy specifying that coverage applies only if a claim is both made...
Claims-made basisA type of insurance coverage where a policy responds to claims that are first made against the insured and...
Claims-made coverage triggerA provision in liability insurance policies that stipulates coverage is activated when a claim is first made...
Claims-made multiplierA set of factors, usually applied to the mature claims-made rate or to an equivalent occurrence rate, that...
Claims-made policyAn insurance policy that covers claims first made against the insured and reported to the insurer during the...
Claims-made reinsuranceA form of reinsurance where coverage is triggered when a claim is first reported to the reinsured during the...
Claims-paid policyA type of insurance policy, typically found in certain professional liability or medical malpractice...
Clash coverA type of excess of loss reinsurance that protects an insurer against multiple claims arising from a single...
ClassA group of insureds or exposures that share similar risk characteristics, allowing an insurer to set a common...
Class 1 insuredsThe named insured together with resident relatives of the named insured's household, who are protected as...
Class 2 insuredsA person who qualifies as an insured under uninsured and underinsured motorists coverage only by occupying...
Class actionA lawsuit filed by one or more individuals on behalf of a larger group of people who have suffered similar...
Class Action Fairness Act of 2005 (CAFA)A United States federal law that expanded federal court jurisdiction over class action lawsuits. It allows...
Class action waiversContractual clauses that require parties to resolve disputes through individual arbitration or litigation...
Class I areaA federal land area, mainly a large national park or wilderness area, that the Clean Air Act's...
Class I railroadA freight railroad whose annual operating revenue reaches the top classification threshold of the Surface...
Class II railroadA freight railroad whose annual operating revenue falls between the Surface Transportation Board's Class II...
Class III railroadA freight railroad whose annual operating revenue falls below the Surface Transportation Board's Class II...
Class of businessA specific category of insurance coverage, defined by the type of risk insured or the nature of the...
Class ratingA method of determining insurance premiums by applying a single rate to all insureds within a particular...
Classic car insuranceA specialized type of auto insurance designed for antique, collector, or vintage vehicles that are not used...
ClassificationThe process of grouping applicants for insurance who have similar characteristics and exposures to risk...
Classification limitationAn endorsement on a liability policy that restricts coverage to activities specifically described in the...
Classified insuranceA form of life or health insurance written for applicants whose age, medical history, occupation, or habits...
ClauseA specific provision or stipulation within an insurance policy that defines, limits, or clarifies the...
Clawback provisionA contractual clause allowing an insurer or company to recover money previously paid to an employee, agent...
Clean Air Act of 1970 (CAA)A federal statute in the United States that regulates air emissions from stationary and mobile sources. This...
Clean closureThe process of closing a hazardous waste management facility by removing or decontaminating all hazardous...
Clean Water Act of 1972 (CWA)A federal law in the United States that governs water pollution. This act establishes the basic structure for...
Cleanup fundA sum set aside, usually from life insurance proceeds, to pay the expenses that arise at a person's death...
ClearanceThe underwriting step of checking an incoming submission against the insurer's records to see whether the...
Clergy-penitent privilegeA legal protection that prevents clergy members from being compelled to disclose confidential communications...
Click-wrap agreementA type of online agreement where a user assents to terms and conditions by clicking an 'I agree' or similar...
Client companyAn organization that contracts with a professional employer organization (PEO) or staffing agency to provide...
Climate change riskThe potential for adverse impacts on an organization's assets, liabilities, or operations due to changes in...
Clinical patternsRecurring trends in diagnoses, treatments, patient outcomes, or adverse events identified from analyzing...
Closed basin lakeA natural lake from which water leaves primarily through evaporation and whose surface area exceeds or has...
Cloud computingThe delivery of on-demand computing services, including servers, storage, databases, networking, software...
Coastal barrierA naturally occurring island, sandbar or other strip of land, including coastal mainland, that protects the...
Coastal Barrier Improvement Act of 1990Enacted on November 16, 1990, the Act greatly expanded the identified land in the Coastal Barrier Resources...
Coastal Barrier Resources Act of 1982For the purposes of the NFIP, the CBRA of 1982 designated certain portions of the Gulf and East Coasts as...
Coastal Barrier Resources System1. Communities, coastal barriers and Otherwise Protected Areas (OPAs) identified by legislation defined above.
Coastal high hazard areasSpecial Flood Hazard Areas (SFHAs) along the coasts that have additional hazards due to wind and wave action...
Coded excessA method of pricing excess of loss reinsurance in which the reinsurer charges a separate rate for each...
CodefendantAn individual or entity named as a defendant alongside one or more other parties in the same lawsuit. All...
CodingThe process of assigning standardized numeric or alphanumeric codes to data elements on insurance claims and...
CoemployerAn entity that shares employer responsibilities and liabilities with another organization, typically in a...
CoemploymentA legal relationship where two or more employers share responsibility and liability for the same employees...
Coincidental excess coverageA primary liability policy that carries an excess other-insurance clause, so it acts as excess only when...
CoinsuranceA penalty imposed on the loss payment unless the amount of insurance carried on the damaged building is at...
Coinsurance hammer clauseA provision in some liability insurance policies that penalizes the insured if they refuse to consent to a...
Coinsurance provisionA clause in property insurance policies that requires the insured to maintain coverage equal to a specified...
CoinsurerAn insurer that shares in the risk of a policy alongside other insurers, each covering a specified percentage...
Collapse additional coverageAn addition to a standard property insurance policy that provides coverage for loss resulting from the abrupt...
Collapse: homeowners policyA sudden and abrupt falling down or caving in of a building or part of a building, which renders the...
CollarA hedging structure that combines a cap on one side with a floor on the other, so that the result of an...
CollateralAssets pledged by a borrower to a lender to secure a loan or other obligation. In insurance, collateral may...
Collateral agreementA contract in which a party pledges assets to a surety or insurer to secure its performance of an underlying...
Collateral documentsSupporting legal or financial papers that accompany a primary contract or transaction, often detailing...
Collateral estoppelA doctrine that bars a party from relitigating an issue of fact or law that a court already decided in a...
Collateral source ruleA legal doctrine in tort law that prohibits a defendant from presenting evidence that an injured party has...
Collection commissionA fee paid to an agent or broker for collecting premiums from policyholders on behalf of an insurer. This...
Collection feeA payment an insurer makes to an agent for collecting premiums from policyholders, used instead of or...
Collision damage waiver (CDW)An optional agreement offered by rental car companies that relieves the renter of financial responsibility...
Collision insuranceCoverage that pays for damage to an insured vehicle resulting from an impact with another vehicle or object...
Combination plan reinsuranceA single reinsurance agreement that blends excess of loss and quota share cover for one premium, set as a...
Combined additional coverage (CAC)A physical damage coverage for autos that pays for loss from a named list of perils, written together with...
Combined ratioA key measure of an insurer's underwriting profitability, calculated by adding the loss ratio and the expense...
Combined single limitsA single dollar amount representing the maximum an insurer will pay for all damages resulting from a single...
Comment periodA designated timeframe during which the public can submit feedback and opinions on proposed regulations...
Commercial appropriationThe unauthorized use of a person's name, likeness, or other identifiable personal attributes for commercial...
Commercial auto insurance coverage formsStandardized documents used by insurers to define the scope of coverage for commercial vehicles. These forms...
Commercial crime policy (CR)Insurance that protects businesses from financial losses due to criminal acts committed by employees or third...
Commercial general liability policy (CGL)A standard insurance policy issued to business organizations to protect them against liability claims for...
Commercial insurer or reinsurerA private entity that provides insurance or reinsurance coverage to businesses and organizations for a...
Commercial linesThe segment of the insurance market that provides coverage for businesses, organizations, and other...
Commercial output policy (COP)A package policy that combines property and inland marine coverages to insure a business's personal property...
Commercial Property Conditions formA form attached to every commercial property policy that states the general conditions shared by its coverage...
Commercial property coverage forms (CP)Standardized forms developed by the Insurance Services Office (ISO) that define the scope of coverage for...
Commercial property policyAn insurance policy that protects businesses from financial losses due to damage or destruction of their...
Commercial property program (CPP)A set of commercial property insurance forms published by Insurance Services Office, including coverage forms...
Commercial risksThe potential for financial loss or damage faced by businesses due to unforeseen events or circumstances...
Commercial waste management facilityA site or operation that handles, treats, stores, or disposes of waste generated by businesses and industries...
CommissionA fee paid to an insurance agent or broker for selling an insurance policy. This compensation is typically a...
CommissionerThe chief regulatory official of a state's insurance department, responsible for overseeing the insurance...
Commissioners Standard Ordinary 1958 Mortality Table (CSO Table)A mortality table developed in 1958 that provided a standard for life insurers to calculate reserves and...
Commissions of selling agents coverageInsurance that reimburses a sales representative for commission income lost when the manufacturer it...
Committee of Sponsoring Organizations (COSO)A private sector initiative that provides thought leadership and guidance on enterprise risk management...
Common accidentA single, unexpected, and uninterrupted event that results in injury or damage to multiple persons or...
Common carrierAn individual or entity that transports goods or people for a fee, offering its services to the general...
Common disasterAn event that causes the simultaneous or near-simultaneous death of two or more individuals, particularly...
Common interest doctrineA legal principle that allows parties with a shared legal interest to exchange privileged information without...
Common knowledge exceptionA rule in malpractice and other professional negligence cases that excuses the plaintiff from presenting...
Common lawA body of law derived from judicial decisions and customs, rather than from statutes or constitutions. Common...
Common law defensesLegal arguments available to a defendant in a tort action that originated from judicial decisions rather than...
Common law liabilityLegal responsibility for harm or injury that arises from principles established through judicial precedent...
Common policy conditionsA section within a commercial insurance policy that outlines the general rules and provisions applicable to...
Communicable diseaseAn illness caused by an infectious agent or its toxic products that spreads from one person or species to...
Communicable diseases exclusionA provision in professional liability policies, particularly for healthcare providers or facilities, that...
Community1. A political entity that has the authority to adopt and enforce floodplain ordinances for the area under...
Community assistance visitA major component of the National Flood Insurance Program's (NFIP's) Community Assistance Program (CAP). The...
Community compliance programThe National Flood Insurance Act of 1968 prohibits the Federal Emergency Management Agency (FEMA) from...
Community numberA 6-digit designation identifying each NFIP community. The first 2 numbers are the state code. The next 4 are...
Community propertyA system of property ownership recognized in some states where assets acquired by either spouse during...
Community ratingA method of setting health insurance premiums in which everyone in a defined geographic area pays the same...
Community Rating SystemA program developed by FEMA to provide incentives for those communities in the Regular Program that have gone...
Community rating system (CRS), see Community Rating System
CommutationThe process of converting a series of future payments, such as those from an annuity or a workers'...
Commutation agreementA formal contract between an insurer and a reinsurer, or between an insurer and a claimant, to settle all...
Commutation clauseA provision within a reinsurance treaty that allows the parties to terminate their ongoing financial...
Commutation rightsA contractual provision in a reinsurance agreement that allows for the full and final settlement of all...
Compacts, Access, and Responsible Expansion (CARE) ActA proposed federal bill, introduced in several sessions of Congress, that would set up a grant program run by...
Comparative negligenceA legal principle used in accident claims to determine the degree of fault for each party involved, and to...
CompensableDescribing an injury or illness that is eligible for benefits under a workers' compensation insurance policy...
Compensated intercorporate hauling (CIH)The transportation of property by a company for a fee, where the property belongs to a corporate affiliate or...
Compensating balance planAn arrangement in which a business pays its insurance premium to the insurer, which keeps its charges for...
Compensatory damagesMonetary awards granted to an injured party in a lawsuit to cover actual losses and restore them to their...
Compensatory storageThe NFIP floodway standard in 44CFR 60.3 (d) restricts new development from obstructing the flow of water and...
Competitive biddingA process where multiple insurers or brokers submit proposals and quotes to provide insurance coverage for a...
Competitive state fundsGovernment-operated workers' compensation insurance carriers that compete with private insurers within a...
ComplaintA formal expression of dissatisfaction by a policyholder or claimant regarding an insurer's actions...
Complete retentionA risk management strategy where an organization assumes full financial responsibility for all its potential...
Completed operations (C/O)Work performed by a contractor that has been finished, put to its intended use, or accepted by the client...
Compliance and Ethics Forum for Life Insurers (CEFLI)An organization dedicated to fostering ethical conduct and regulatory compliance within the life insurance...
Compliance, Safety, Accountability score (CSA)A measurement system used by the Federal Motor Carrier Safety Administration (FMCSA) to assess the safety...
Composite ratingA method of calculating insurance premiums where a single rate is applied to an entire group of exposures...
Compound inflation riderAn optional provision added to a long-term care insurance policy that increases the daily benefit amount by a...
Comprehensive 3-D policyA type of commercial crime insurance policy that provides broad coverage against three main categories of...
Comprehensive auto coverageAn optional component of an automobile insurance policy that covers damage to the insured's vehicle from...
Comprehensive boiler and machinery coverageInsurance protection for direct physical damage to boilers, pressure vessels, and other machinery caused by...
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)A federal law in the United States that provides a Superfund to clean up uncontrolled or abandoned hazardous...
Comprehensive Loss Underwriting ExchangeA database maintained by LexisNexis that contains a history of property and auto insurance claims. Insurers...
Comprehensive personal liability (CPL)A broad form of liability insurance that protects individuals and their families against claims arising from...
Compulsory insuranceInsurance coverage that is legally mandated by a government or regulatory body for individuals or...
Compulsory insurance requirementsLegal stipulations set by governmental authorities that dictate the minimum types and amounts of insurance...
Computer crime insuranceA specialized form of commercial crime insurance that protects businesses from financial losses resulting...
Computer forensicsThe process of identifying, preserving, analyzing, and presenting digital evidence from computer systems and...
Computer Fraud Coverage FormA standardized insurance form that provides coverage for losses of money, securities, and other property...
Computer software design errors and omissionsLiability arising from mistakes, omissions, or negligence in the design, development, or implementation of...
Computer virusA type of malicious software that attaches to another program and, when run, spreads by inserting its own...
Computer wormA standalone malicious software program that replicates itself to spread to other computers across a network...
ConcealmentThe intentional withholding of a material fact by an applicant for insurance that, if known, would have...
ConcurrencyThe situation where two or more insurance policies cover the same property or liability and are written on...
Concurrent causationA doctrine in property insurance that applies when a loss is caused by two or more perils occurring at the...
Concurrent insuranceMultiple insurance policies that cover the same property or liability risk for the same insured during the...
Conditional binding receiptA temporary insurance agreement issued by an insurer's agent to an applicant for life insurance, providing...
Conditional Letter of Map RevisionFEMA's comment on a proposed project that would, upon construction, affect the hydrologic or hydraulic...
Conditional payment clauseA construction contract provision that makes a contractor's payment to a subcontractor depend on the...
Conditional vestingA pension plan feature under which an employee's vested right to the employer-funded benefit holds only if...
Conditionally renewableA type of insurance policy, such as health or disability income, that the insurer can refuse to renew under...
CondominiumA form of real estate ownership where individuals own their specific unit within a larger complex and also...
Condominium association1. The entity made up of the unit owners responsible for the maintenance and operation of the following: •...
Condominium Association Coverage FormA standardized commercial property insurance form designed to cover the buildings and common property owned...
Condominium buildingA type of building in the form of ownership in which each unit owner has an undivided interest in common...
Confidence intervalsA statistical range that quantifies the uncertainty around an estimated value, such as a mean or a...
Confiscation, expropriation, nationalization, and deprivation insurance (CEND)A specialized type of political risk insurance that protects businesses and investors against losses...
Conflict of lawsA branch of law that addresses situations where the laws of more than one jurisdiction could apply to a legal...
Connected vehicleA vehicle equipped with technology that allows it to communicate wirelessly with other vehicles...
ConsensusDOCSA suite of standardized contract documents for the design and construction industry, developed by a coalition...
Consent judgmentA court order that formalizes an agreement reached between opposing parties in a lawsuit, settling the...
Consent to settlement clauseA provision in some liability insurance policies, particularly professional liability or directors and...
Consequential bodily injury suitsSuits by family members of an injured worker, such as a spouse, child, parent, or sibling, seeking damages...
Consequential damagesIndirect losses that arise as a result of a direct loss, but are not directly caused by the insured peril...
Consequential lossAn indirect financial loss that occurs as a result of a direct physical loss or damage to insured property...
ConservatorAn individual or entity appointed by a court to manage the financial affairs or personal care of another...
ConsiderationSomething of value exchanged between parties to a contract, forming the basis for a legally binding...
ConsigneeThe person or business named in a bill of lading as the party to whom a shipment is to be delivered. The...
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)A federal law that gives workers and their families who lose their health benefits the right to choose to...
ConsolidationThe process of combining two or more entities, such as insurance companies, into a single new entity. This...
Constructibility reviewA systematic evaluation of construction plans and specifications before bidding or building begins to...
Construction banA governmental order or regulation that prohibits or restricts new building or development in a specific...
Construction defect (CD)A deficiency in the design, workmanship, or materials used in a construction project that results in damage...
Construction management at-riskA project delivery method in which a construction manager advises the owner during design, then contracts...
Construction management (CM)A professional service that applies specialized management techniques to oversee a project's schedule, cost...
Construction management professional liability insuranceInsurance that covers construction managers for liability arising from negligent professional services, such...
Construction, occupancy, protection, and exposure (COPE)A framework used by property underwriters to assess the risk characteristics of a building or property for...
Construction Risk and Insurance Specialist (CRIS)A professional designation for insurance agents, brokers, and risk managers who specialize in construction...
Constructive dischargeA doctrine of employment law under which an employee who resigns because working conditions have become so...
Constructive noticeLegal presumption that a person has knowledge of a fact, even if they do not have actual knowledge, because...
Constructive total lossA situation where the cost to repair a damaged vehicle or property exceeds its actual cash value or a...
Container shipA vessel specifically designed to carry cargo in standardized intermodal containers, facilitating efficient...
Contents rateThe premium rate applied to the insured value of the personal property inside a building, such as furniture...
Contestable clauseA provision in a life insurance policy that allows the insurer to dispute the validity of the contract due to...
Contingency feeA payment arrangement, typically in legal services, where the professional's fee is a percentage of the...
Contingency planA predetermined course of action designed to address a specific adverse event or emergency that could disrupt...
Contingency planningThe systematic process of developing strategies and procedures to prepare for and respond to potential future...
Contingency reserveAn amount of money set aside to cover unforeseen expenses or potential losses that may arise during a project...
Contingent annuitantAn individual designated to receive annuity payments if the primary annuitant dies before the annuity's...
Contingent beneficiaryAn individual or entity designated to receive the proceeds of a life insurance policy or other financial...
Contingent commissionAn additional payment made by an insurer to an insurance agent or broker, beyond the standard commission...
Contingent insuranceCoverage that provides protection only if another primary insurance policy fails to respond or is...
Contingent liabilityA potential financial obligation that may arise depending on the outcome of a future event. This liability is...
ContinuanceThe right of an insured person to maintain insurance coverage under a group policy for a limited time after...
Continuation of coverage in bankruptcy provisionA policy clause that specifies how coverage applies after an insured entity declares bankruptcy or ceases...
Continuing undertaking ruleA legal principle that extends the statute of limitations for professional negligence claims when the...
Continuous contractAn insurance agreement that remains in effect indefinitely unless either party provides notice of...
Continuous injury triggerA legal theory used in liability insurance to determine which policy or policies are activated when an injury...
Continuous treatment ruleA legal doctrine that postpones the start of the statute of limitations for medical malpractice claims until...
Contra proferentem ruleA legal principle stating that any ambiguity in a contract should be interpreted against the party who...
ContractA legally binding agreement between two or more parties that creates mutual obligations enforceable by law...
Contract agentAn employee of a Write Your Own (WYO) Company or an agent/producer under written contract with a WYO Company...
Contract attorneyA legal professional engaged by an insurance company or other entity on a temporary or project-specific...
Contract bondA type of surety bond that guarantees the performance of a contract, typically in construction, by a...
Contract carrierA transportation company that provides for-hire truck services to a limited number of shippers through...
Contract certaintyThe state where all terms and conditions of an insurance contract are agreed upon and understood by both the...
Contract frustration insuranceCoverage that protects a party against financial losses incurred when a commercial contract becomes...
Contract of adhesionA standardized contract, such as an insurance policy, prepared by one party (the insurer) and offered to the...
Contract ratification indemnityA form of political risk insurance for contractors that pays part of the start-up costs they cannot recover...
Contract repudiation indemnityPolitical risk insurance that compensates an insured for losses when a government or state-owned counterparty...
Contractors all risks insurance (CAR)A type of project-specific insurance that covers physical loss or damage to contract works, construction...
Contractors environmental liability insuranceA specialized insurance policy designed to protect contractors from liability arising from pollution...
Contractor's limitation endorsementAn addition to a general liability or excess policy that restricts coverage for operations performed for the...
Contractors professional liability insuranceInsurance that covers a contractor's liability for negligent professional services it performs or arranges...
Contractors rework coverageInsurance protection for contractors against the costs associated with correcting or redoing faulty...
Contractual liabilityLiability assumed by one party on behalf of another under the terms of a contract. This type of liability...
Contractual liability insuranceCoverage that protects an insured against liability assumed under a written contract or agreement. This...
Contractual liability insurance policy (CLIP)An insurance policy bought by a warranty or service contract provider that backs the provider's promises to...
Contractual risk transferThe process of shifting financial responsibility for certain risks from one party to another through a...
Contributing excessA form of excess of loss cover in which several insurers or reinsurers each accept a stated share of the same...
ContributionThe right of an insurer to recover a portion of a loss payment from other insurers who also cover the same...
Contribution by equal sharesA method of apportioning liability among multiple insurers when two or more policies cover the same loss...
Contribution by limitsA method used by multiple insurers to share the payment of a loss when more than one policy covers the same...
Contributory negligenceA legal defense in tort law where a plaintiff's own negligence contributed to their injuries, thereby barring...
Control Technique GuidelinesDocuments issued by the U.S. Environmental Protection Agency (EPA) that provide state and local air pollution...
Controlled foreign corporation (CFC)A foreign corporation in which U.S. shareholders own more than 50% of the voting power or value of the stock...
Controlled insurance program (CIP)A single insurance program, also known as a wrap-up, that covers all parties involved in a large construction...
Controlled unrelated businessInsurance business a captive writes for parties outside its parent's ownership, such as franchisees, dealers...
ControllingA category of risk management techniques focused on reducing the frequency or severity of losses. These...
Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM)A U.S. law that establishes requirements for commercial messages, gives recipients the right to have...
Convention blankA standardized financial reporting form prescribed by the National Association of Insurance Commissioners...
Convention statementThe annual financial report that an insurance company is required to file with the insurance regulators in...
Conventional subrogationThe right of an insurer to pursue a third party for recovery of a loss paid to its insured, arising from an...
ConvergenceThe trend where distinct financial sectors, such as banking, insurance, and securities, begin to offer...
Converted lossesIncurred losses multiplied by a loss conversion factor in a retrospective rating calculation. The factor, a...
ConvertibleDescribing an insurance policy or financial instrument that can be exchanged for another type of policy or...
Cooke ratioA measure of a bank's capital adequacy, calculated as the ratio of its capital base to its risk-weighted...
Cooperation clauseA provision within an insurance policy that obligates the insured to collaborate with the insurer during the...
CooperativeAn organization owned and controlled by its members, who use its products or services, rather than by outside...
Cooperative insuranceInsurance provided by an organization owned and controlled by its policyholders, who are also its members...
Coordinated Advertising, Rate and Form Review Authority (CARFRA)A system developed by the National Association of Insurance Commissioners (NAIC) to facilitate the review and...
Coordination of coverageA provision in insurance policies that determines the order in which multiple policies pay benefits when an...
Core capitalThe highest quality capital held by a financial institution, consisting primarily of common stock and...
Corporate counselAn attorney or team of attorneys employed directly by a corporation to provide legal advice and...
Corporate governanceThe system of rules, practices, and processes by which a company is directed and controlled, defining the...
Corporate reimbursement coverageA component of a directors and officers (D&O) liability insurance policy that indemnifies the corporation for...
CorporationA legal entity separate and distinct from its owners, created under state law, with the capacity to enter...
CorrelationA statistical measure that describes the degree to which two or more variables move in relation to each...
Corridor deductibleA specific type of deductible that applies after an initial layer of insurance coverage has been exhausted...
Corridor self-insured retentionA specific amount of loss that an insured must bear after an underlying insurance policy's limits have been...
Cost and freight (C and F)An Incoterm (International Commercial Term) where the seller is responsible for arranging and paying for the...
Cost, insurance, and freight (CIF)An international shipping agreement where the seller is responsible for the cost of goods, insurance, and...
Cost of debtThe effective interest rate a company pays on its borrowings, such as bonds, loans, and other forms of debt...
Cost of risk (COR)The total expense incurred by an organization to manage its risks, encompassing both insurable and...
Cost of suit coverageLiability coverage that pays to defend lawsuits whose value lies entirely inside the insured's retention or...
Co-suretyA situation where two or more surety companies jointly guarantee the same obligation or bond for a principal...
Counsel selection provisionA clause in a liability insurance policy that specifies who has the right to choose legal counsel to defend...
Counseling liabilityThe professional liability exposure faced by individuals or organizations providing advice, guidance, or...
CounterclaimA claim filed by a defendant against a plaintiff in the same lawsuit, asserting that the plaintiff is also...
CounterpartyThe other party that participates in a financial transaction, such as a derivative contract or a reinsurance...
CountersignatureAn additional signature required on an insurance policy or other legal document, often by an agent or broker...
Countywide mapA Flood Insurance Rate Map (FIRM) that shows flooding information for the entire geographic area of a county...
Coupon interestThe periodic interest payment made to the holder of a bond or other fixed-income security. It is typically...
Course of employmentThe period during which an employee is engaged in work-related activities or is otherwise acting in...
Court reporterA professional responsible for creating a verbatim record of spoken testimony and proceedings in legal...
Courthouse steps settlementA resolution of a legal dispute reached by the parties just before a trial or hearing is scheduled to begin...
CovarianceA statistical measure indicating the directional relationship between the returns of two assets or variables...
Covenant not to executeA contractual agreement in which a plaintiff agrees not to enforce a judgment against a specific defendant...
Covenant not to sueA legal agreement between two or more parties where one party promises not to pursue legal action against...
Covenants, conditions, and restrictions (CC&R)Rules and limitations governing the use of real property, typically found in the deed or a separate document...
CoverThe protection provided by an insurance policy against specified risks or losses. It defines the scope of...
Cover noteA temporary document issued by an insurer or broker that provides immediate proof of insurance coverage...
CoverageThe protection provided by an insurance policy against specified risks or perils. It defines the scope of...
Coverage formA standardized document that specifies the perils insured against, the property or liability covered, and the...
Coverage territoryThe geographical area specified in an insurance policy where covered losses or liabilities will be honored...
Coverage triggerThe event or condition that determines which policy period responds to a loss. Under an occurrence form, the...
CoverholderAn insurance intermediary, typically a broker or agent, authorized by an insurer to underwrite and issue...
COVID-19A respiratory disease caused by the SARS-CoV-2 virus that was declared a global pandemic by the World Health...
Cradle-to-grave systemA regulatory framework that tracks hazardous waste from its generation through its transportation, treatment...
Crawlspace1. An under-floor space that has its interior floor area (finished or not) no more than 5 feet below the top...
Credentialing claimsAllegations of negligence or misconduct related to the process of verifying the qualifications, competence...
Credentialing committeeA body within a healthcare organization or professional association responsible for evaluating the...
Credentialing liabilityThe legal responsibility of an organization, such as a hospital or healthcare system, for damages arising...
CredibilityA measure of the predictive value of past loss experience for forecasting future losses. Actuaries use...
Credit carry-forwardA feature of a long-term reinsurance treaty that moves a credit or profit from one accounting period into the...
Credit default swap (CDS)A financial derivative contract where one party, the protection buyer, pays a periodic premium to another...
Credit for reinsuranceThe ability of a ceding insurer to reduce its statutory liabilities by the amount of reinsurance ceded to an...
Credit health insuranceA type of insurance designed to cover loan or credit card payments if the borrower becomes unable to work due...
Credit insuranceA policy that protects a lender or seller against losses from a borrower's or buyer's failure to meet their...
Credit life insuranceA type of life insurance policy designed to pay off a specific debt, such as a mortgage or car loan, if the...
Credit monitoringA service offered to individuals as part of a data breach response, which tracks activity on their credit...
Credit reportA detailed summary of an individual's or company's financial history, including borrowing and repayment...
Credit riskThe potential for financial loss arising from a borrower's failure to repay a loan or meet contractual...
Credit wrapA form of financial guarantee, usually provided by an insurer or bank, that covers the payment of principal...
Creditor group life insuranceA type of group life insurance policy purchased by a lender to cover the lives of its debtors. If a covered...
Creeping expropriationA series of incremental governmental actions that, over time, effectively deprive an investor of the economic...
CrisisAn unstable or dangerous event or period that poses a severe threat to an organization's operations...
Crisis management approachA structured methodology employed by an organization to prepare for, respond to, and recover from disruptive...
Crisis management coverageAn insurance policy component that provides financial support for expenses incurred in managing and...
Crisis management planA documented set of procedures and guidelines for an organization to respond to a sudden, negative event that...
Criteria pollutantAn air pollutant for which the U.S. Environmental Protection Agency (EPA) has established national ambient...
Critical facilityFor some activities and facilities, even a slight chance of flooding is too great a threat. Typical critical...
Critical illness insuranceA type of supplemental health insurance that pays a lump-sum cash payment to the policyholder upon the...
Critical recommendationA suggestion or directive issued by an insurer or risk management consultant that addresses a severe hazard...
Crop-hail insuranceA specialized form of property insurance that protects agricultural producers against losses to their crops...
Cross purchaseAn arrangement in business succession planning where each owner of a business agrees to personally purchase...
Cross-complainantA party in a lawsuit who files a cross-complaint against an existing party, such as the original plaintiff or...
Cross-complaintA pleading filed by a defendant in a lawsuit against the plaintiff or a co-defendant, asserting a claim...
Cross-defendantA party in a lawsuit against whom a cross-complaint has been filed by another party, such as the original...
Cross-dockingA logistics practice where incoming goods from a supplier are directly transferred to outbound trucks or...
Cross-indemnity agreementA contractual arrangement where two or more parties agree to protect each other from liability for certain...
Cross-liability coverageA provision in a commercial general liability policy that treats each insured party as if they were the only...
Cross-liability endorsementA provision added to a liability insurance policy that treats each insured party as if they were separately...
CrowdfundingA method of raising capital by soliciting small contributions from a large number of individuals, typically...
Cumis counselAn independent attorney appointed to represent an insured when a conflict of interest arises between the...
Cumulative damage buildingAny building that has incurred flood-related damage as a result of two or more flooding events in which the...
Cumulative damage propertyEither a cumulative damage building or the contents within a cumulative damage building, or both.
Cumulative injuryAn injury or illness that develops gradually over an extended period due to repetitive exposure to harmful...
Currency inconvertibilityThe inability of an investor to convert local currency, earned from investments in a foreign country, into...
Current assumption whole life insuranceA type of permanent life insurance where the premium payments and cash value growth are adjusted periodically...
Current disbursementA funding method in which premiums and benefits are paid out of current revenue as they come due, with no...
Current service benefitThe value of pension or other post-employment benefits earned by an employee during the current year of...
Custom bondA type of surety bond required by customs authorities to guarantee that an importer will comply with all laws...
Customer's autoA non-owned vehicle that is in the care, custody, or control of an insured business, such as an auto repair...
Cut through clauseA provision in a reinsurance contract that allows the original insured party to directly claim against the...
Cut through endorsementAn agreement added to a reinsurance contract that allows the original policyholder to directly claim against...
CutoffA basis of terminating a reinsurance treaty under which the reinsurer has no liability for losses that occur...
Cyber and privacy insuranceA form of specialized insurance intended to cover losses resulting from a data breach or other cyber security...
Cyber bullyingRepeated aggressive behavior carried out through electronic means, such as social media, email, or text...
Cyber extortionA type of cybercrime where malicious actors threaten to damage, block access to, or release sensitive data...
Cyber-extortion coverageInsurance protection against financial losses incurred due to threats from cybercriminals to release...
Cyber-physical attackAn assault that targets and manipulates or damages physical systems through cyber means, such as industrial...
Cyber-security technologyTools, software, and systems designed to protect computer networks, programs, and data from unauthorized...
Cyber-space liabilityThe legal responsibility for damages or losses incurred by third parties due to incidents occurring within an...

449 of 3,708 terms in Insurance and risk management terminology (MLC-0106). Request the full dataset.