Dictionary of Insurance

C

Certiorari

Certiorari refers to a legal process where a higher court, such as the Supreme Court, reviews the decision of a lower court. This term is particularly relevant in insurance disputes that have significant legal or policy implications. When an insurance…

Ceding Company

Ceding company is an insurer that transfers (cedes) all or part of the risks it assumes through insurance policies to a re insurer. This transfer allows the ceding company to reduce its exposure to large losses and manage its capital…

Cede

Cede refers to the process where an insurance company transfers a portion of its risk to another insurer, known as a re insurer. This transfer allows the ceding company to reduce its exposure to large losses, thereby stabilizing its financial…

Caveat Emptor

Caveat emptor, Latin for "let the buyer beware," is a principle emphasizing the buyer's responsibility to perform due diligence before making a purchase. In the American insurance industry, this doctrine highlights the importance of policyholders thoroughly understanding the terms, conditions,…

Catastrophe Reinsurance

Catastrophe reinsurance is a specialized type of insurance purchased by primary insurers to protect against large-scale financial losses from catastrophic events like hurricanes, earthquakes, or terrorist attacks. In the American insurance industry, this reinsurance helps insurers manage their risk exposure…

Catastrophe Policy

A catastrophe policy in the American insurance industry provides coverage for large-scale, severe events causing extensive damage, such as hurricanes, earthquakes, floods, or terrorist attacks. This type of policy is designed to offer financial protection when standard insurance limits are…