Glossary C

Cancellation

The termination of an in-force insurance contract by either the insured or the insurer before its normal expiration date.

Claim

Notice to an insurance company that a loss has occurred that may be covered under the terms and conditions of the policy.

Claim Adjuster

The person who evaluates the damage caused by a covered loss and determines the amount to be paid under the policy terms.

Claims Made

A liability insurance policy where coverage applies to claims filed during the policy period no matter when the loss occurred subject to a retroactive inception date.

Coinsurance

An insurance clause that defines the amount of insurance carried, divided by the amount of insurance required. This basic formula relates to a contracted percentage of coverage that must be required to prevent a coinsurance penalty.

Commercial Lines

Insurance coverages for business, commercial institutions, and professional organizations, as contrasted with personal insurance.

Commission

A portion of the policy premium that is paid to an agent by the insurance company as compensation for the agent's work.

Concurrent Causation

Occurs when two or more perils cause a loss. When only one of these perils is covered by the insurance policy, the court generally rules that the entire loss is covered. Many insurance companies have reworded their policies to clarify that only a loss attributed to a covered peril is indeed covered.

Conditions

The portion of an insurance contract that sets forth the rights and duties of the insured and the insurer.

Consequential Bodily Injury

In Worker Compensation, special circumstances can arise when a work-related injury causes some sort of non-work related injury. (See Loss of Consortium, Dual Capacity, and Third Party Over glossary definitions.)

Coverage

Protection that is provided under an insurance policy.

Previous ... Continue