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• Cafeteria Benefit Plan:
  An arrangement which employees may select their own employee benefit structure.

• Cancelable:
  A contract of insurance that may be terminated during the policy term by the insurer or insured at any time.

• Cancellation:
  Termination of a policy in force by a voluntary act of the insured or insurer.

• 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.

• Capacity:
  The largest amount of insurance or reinsurance available from an insurance company.

• 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.

• Capital Sum:
  The maximum lump sum payment payable in the event of an accidental death or dismemberment.

• 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.

• Captive Agent:
  A licensed insurance agent who sells insurance for only one company.

• 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 carrier.

• 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.

• Catastrophe:
  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 coverage's, and exclusions that may apply to your policy. It is important to read your policy.

• Cede:
  The transfer of all or part of a risk written by an insurer to a reinsurer.

• Certificate of Insurance:
  A document issued to a member of a group insurance plan, outlining the insurance benefits and principal provisions of the policy.

• Claim:
  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.

• 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.

• 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.

• 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 establishments.

• 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 cover's a contractor's liability for accidents arising out of jobs or operations that was 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 copayment.

• 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.

• Concealment:
  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.

• 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.

• Condominium Unit Owners Coverage Form:
  A commercial property form designed to cover the needs of commercial condominium unit owners.

• Confining:
  A disability or sickness that confines an insured indoors.

• 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.

• 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 dangerous.

• 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. Contract Bond: A bond used to guarantee the performance of a construction contract and the payment of all materials and labor bills.

• 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.

• Contributory:
  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 claim.

• Copay:
  An arrangement where the insured pays a specified amount for various services and the health carrier pays the remaining charges.

• 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 perils.

• 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.

• 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 them.

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