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There are many different
types of Car insurance policies and levels of cover, here is a brief description
of insurance definitions typically used within the insurance industries.
A
B C
D
E
F
G
H
I
J
K
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M
N
O
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Q
R
S
T
U
V
W
X
Y
Z
Cancellation Clause
A provision in an insurance contract that permits the insurer or the insured to
cancel a policy at any time before its expiration date.
Capacity
The largest amount of insurance or reinsurance available from a company. It can
also refer to the largest amount of insurance or reinsurance available in the
marketplace.
Cash Surrender Value
The amount of money received when a policyholder surrenders a life insurance
policy with cash value.
Caveats
Conditions attached to an insurance quotation.
Cede
To transfer all or part of a risk written by an insurer to a reinsurer.
CII
Chartered Insurance Institute. A body controlling professional standards
(educational, ethical etc) in the insurance industry.
Claim
Notification to an insurance company that payment of an amount is due under the
terms of a policy.
Claims Experience
The relationship of claims to premiums for a period. Usually expressed as a
percentage or ratio.
Claims Reserve
Amounts set aside by an insurer to meet costs of claims incurred but not yet
settled.
Co-insurance
An arrangement by which a number of insurance companies cover a particular
risk.
Conditions
Provisions in an insurance contract that state the rights and duties of the
insured and of the insurer.
Consequential Loss
A financial loss occurring as the result of some other loss. Also known as an
indirect loss. (eg a shop is destroyed by fire. The loss of the building, stock
etc is a direct loss. The loss of ongoing profit because of the inability to
continue trading is a consequential loss).
Continuation Option
Allows employees to continue their group insurance coverage under certain
conditions after their employment has terminated (much less common today).
Continuing Professional Development
A formal procedure by which a professional body ensures that its members keep
their expertise up to date with current developments. Applies to doctors,
lawyers, accountants, financial advisers etc.
Contract
A legally enforceable agreement between two parties
Convertible Term Insurance
Term insurance which can be changed into a permanent policy without further
evidence of insurability or medical examination.
Cooling Off Period
A period allowed in certain circumstances during which a person who has entered
into a contract (for example, an insurance policy or a personal loan) may cancel
it without incurring any penalty.
Cover Note
A temporary certificate confirming that an insurance policy is in force. Used
in motor insurance for taxation/registration purposes and in some other contexts
such as life assurance to confirm that cover is effective on a temporary basis
while further information is being gathered.
CPD
Continuing Professional Development.
Critical Illness Policy
A Critical Illness policy will provide a lump sum payment to the insured should
he or she be diagnosed as having one of a number of specified illnesses,
conditions or diseases.
Custom Excise
A government department responsible for the collection of duties on imports,
VAT and other taxes including Insurance Premium Tax.
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