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Carrying charge

Carrying charge refers to the cost associated with maintaining insurance policies or holding financial obligations over a period of time. This can include interest, fees, and other expenses that accrue while the policyholder maintains their insurance coverage. For example, in…

Cash refund annuity

A cash refund annuity is a type of annuity contract in the American insurance industry. It provides regular income payments to the annuitant for life. If the annuitant dies before the total amount paid into the annuity is returned, the…

Cash surrender value

In the American insurance industry, the cash surrender value is the amount a policyholder receives if they cancel their permanent life insurance policy before it matures or the insured passes away. It represents the savings component of the policy, which…

Casualty Insurance

Casualty insurance covers losses resulting from accidents, injuries, or damage to property. It includes liability coverage for individuals or businesses legally responsible for causing harm to others. In the American insurance industry, it typically encompasses automobile, workers' compensation, and general…

Catastrophe

Catastrophe refers to a significant, often unpredictable event causing substantial damage and loss, affecting a large number of policyholders simultaneously. These events include natural disasters such as hurricanes, earthquakes, floods, and wildfires, as well as man-made incidents like terrorist attacks.…

Catastrophe Number

Catastrophe number is a unique identifier assigned to a specific catastrophic event by organizations like the Insurance Services Office (ISO) or Property Claims Services (PCS). This number helps insurers, reinsurers, and regulatory bodies systematically track and manage claims related to…

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…

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…

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,…

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…

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…

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…

Cession

Cession refers to the act of transferring risk from an insurer (the ceding company) to a reinsurer. This process involves the ceding company assigning a portion of its insurance liabilities, and the corresponding premiums, to the reinsurer. Cession helps insurers…

Cestui Que Trust

Cestui Que Trust: Beneficiary of a trust, who holds the equitable title to the trust's assets, while the trustee holds the legal title and manages the trust. The cestui que trust benefits from the assets and income generated by the…

Chain

Series of interconnected insurance or reinsurance agreements where risk is passed along multiple parties. This often involves a primary insurer ceding risk to a reinsurer, who may then pass on some of that risk to another reinsurer, creating a chain…

Chain of Title

Chain of Title: Sequential record of historical transfers of ownership for a particular property. This chain establishes legal ownership and ensures there are no gaps or disputes over who holds the title. In real estate transactions, title insurance companies meticulously…

Chamber of Commerce of the United States

The Chamber of Commerce of the United States is a major lobbying group representing American businesses. In the context of the American insurance industry, it advocates for policies that benefit insurance companies and their clients. This includes pushing for regulatory…

Charter

Charter is a formal authorization or license granted by a state regulatory agency that allows an insurance company to operate within that state. This document outlines the insurer's rights, responsibilities, and scope of operations, ensuring compliance with state laws and…

Charter Party

Charter party is a contract between a shipowner and a charterer specifying the terms under which a vessel is leased. It details the rights and obligations of both parties, including the duration of the charter, freight rates, and responsibilities for…

Chattel

Chattel refers to movable personal property that can be insured against loss or damage. It typically includes items such as furniture, electronics, vehicles, and other tangible assets not considered real estate. Chattel insurance provides coverage for these movable assets, protecting…

Childbirth

Childbirth refers to the medical event of giving birth to a child. Health insurance policies in the United States typically cover childbirth expenses, including prenatal care, labor and delivery, and postnatal care. Coverage details can vary widely, with considerations for…

Civil Authority Clause

Civil Authority Clause is a provision found in property insurance policies. It covers losses incurred when access to insured property is prevented or restricted by order of a civil authority due to a covered cause of loss, such as a…

Civil Commotion

Civil commotion refers to a disturbance or upheaval involving a large number of people that leads to public unrest, protests, riots, or similar forms of civil disorder. Insurance policies may cover damage caused by civil commotion, including vandalism, looting, and…

Civil Commotion Policy

Civil commotion policy is a type of insurance that covers damage or loss caused by public disturbances, riots, or civil unrest. It typically protects businesses, property owners, and individuals from the financial impact of vandalism, looting, and related acts during…

Claim

Claim refers to a formal request made by a policyholder to their insurance company for compensation or coverage for a covered loss or event. It initiates the process where the insurer assesses the validity of the claim based on the…