Cancellation: Refers to the termination of an insurance policy before the end of the stated
policy period.

Carrier: (1) An insurance company which "carries" the insurance. (The terms "insurance
company" or "insurer" are preferred because of the possible confusion of "carrier" with
transportation terminology). (2) In transportation, the trucker, air carrier, ocean steamship
company or other entity which moves the goods. (See "Contract Carrier)

Casualty Insurance: That type of insurance that is primarily concerned with losses caused
by injuries to persons and legal liability imposed for such injury or for damage to property of
others. It also includes such diverse forms as Plate Glass, insurance against crime, such as
robbery, burglary or forgery, Boiler and Machinery insurance, and Aviation insurance. Many
casualty companies also write surety business.

Causes of Loss: Under the latest commercial property forms, this term replaces the earlier
term "perils" insured against.

Claim: For auto and home insurance, a formal request by the policyholder/insured to be
reimbursed for losses covered by the insurance policy. For health insurance, a form
submitted to the insurance company by the patient or health care provider to request
payment for medical care, services or items.

Claims-Made Coverage: A policy providing liability coverage only if a written claim is made
during the policy period or any applicable extended reporting period. For example, a claim
made in the current reporting year could be charged against the current policy even if the
injury or loss occurred many years in the past. If the policy has a retroactive date, an
occurrence prior to that date is not covered. (Contrast this with "Occurrence Coverage)

Coinsurance: (1) In property insurance, a clause under which the insured shares in losses
to the extent that he is underinsured at the time of loss. (2) In health insurance, a
provision that the insured and insurance company will shared covered losses in agreed
proportion. In health insurance, the preferred term is "percentage participation."

Collision Insurance: The portion of an auto insurance policy that pays for collision damage
to the insured vehicle resulting from another vehicle or object. This may include a collision
with a garage door or a tree. Collision Coverage Insurance pays for damage to the
insured's car regardless of who is at-fault in the accident.

Commercial General Liability (CGL) Coverage Part: General liability coverage which may
be written as a monoline policy or part of a commercial package. "CGL" now means
commercial general liability forms which have replaced the earlier "comprehensive" general
liability forms. The latest forms include all sublines, provide very broad coverage, and two
variations are available, "Occurrence," and "Claims Made," coverage.

Comprehensive Coverage: Helps cover damages to an automobile resulting from accidents
or incidents outside of those outlined under collision coverage. This may include damage
resulting from hail, flood, fire, vandalism, or theft.

Comprehensive General Liability Policy: A policy covering a variety of general liability
exposures, including Premises and Operations (OL&T or M&C), Completed Operations,
Products Liability, and Owners and Contractors Protective. Contractual Liability and Broad
Form coverages could be added. In most jurisdictions the "Comprehensive General Liability
Policy" has been replaced by the newer "Commercial General Liability (CGL) forms which
include all the standard and optional coverages of the earlier forms.

Comprehensive Personal Liability Policy (CPL): A personal liability contract. It provides
personal liability coverage for the individual and family needs arising out of numerous
personal activities and situations, such as the ownership of residential property, ownership
of pets, sports activities, and many other everyday activities.

Conditionally Renewable: A contract of health insurance that provides that the insured
may renew the contract to a stated date or an advanced age, subject to the right of the
insurance company to decline renewal only under conditions defined in the contract.

Consequential Loss: A loss arising indirectly from an insured peril.

Constructive Total Loss: A partial loss of sufficient degree to make the cost of repairing
more than the property is worth.

Contract Carrier: A transportation company which carries the goods of only certain
customers and not the public in general as in the case of a common carrier.

Contractual Liability: Liability assumed under any contract or agreement. Coverage is
generally limited in liability policies, but in most cases may be provided for an additional

Contribution: The term relates to circumstances where more than one party covers the
risk. Each party is deemed to be liable for his proportion of the loss. If the Assured recovers
in full from one insurer, that insurer is entitled to recover from the other insurer for that
part of the loss which should have been paid by the latter.

Contributory Value: The value on which a contribution to a salvage award is calculated.

Cover: (1) A contract of insurance; (2) To effect insurance; (3) To include within the
coverage of a contract of insurance.

Coverage: The amount and type of protection an insurance policy provides to the insured.

Coverage Part: Any one of the individual commercial coverage parts that may be attached
to a commercial policy.

Coverage Trigger: A mechanism that determines whether a policy covers a particular claim
for loss. For example, the difference between the coverage triggers of liability "occurrence"
forms and "claims made" forms is that the loss must occur during the policy period in the
first case and the claim must be made during the policy period in the second case.

The above information is for general informational purposes only and is not to be
construed as a recommendation or advice in any way shape or form.
Copyright © 2016 Stephen W. Gersh Insurance Agency, Inc.  All rights reserved.
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