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Term Definition
C and F cost and freight
C&F cost and freight
C-SHARE VARIABLE ANNUITIES A form of variable annuity contract where the contract holder pays no sales fee up front or surrender charges. Owners can claim full liquidity at any time.
C/O completed operations
CAA Clean Air Act
CAC combined additional coverage
CAGR compounded annual growth rate
CAI computer assisted instruction
CAL comprehensive automobile liability

Certified Account Manager. The CAM program was developed with the Accredited Customer Service Representative designation holder in mind. CAM builds on the technical knowledge and customer service skills developed through the ACSR program. Each segment of the CAM program meets the reaccreditation requirement of the ACSR designation.


The Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003


The supply of insurance available to meet demand. Capacity depends on the industry’s financial ability to accept risk. For an individual insurer, the maximum amount of risk it can underwrite based on its financial condition. The adequacy of an insurer’s capital relative to its exposure to loss is an important measure of solvency.  A property/casualty insurer must maintain a certain level of capital and policyholder surplus to underwrite risks. This capital is known as capacity. When the industry is hit by high losses, such as after the World Trade Center terrorist attack, capacity is diminished. It can be restored by increases in net income, favorable investment returns, reinsuring more risk and or raising additional capital. When there is excess capacity, usually because of a high return on investments, premiums tend to decline as insurers compete for market share. As premiums decline, underwriting losses are likely to grow, reducing capacity and causing insurers to raise rates and tighten conditions and limits in an effort to increase profitability. Policyholder surplus is sometimes used as a measure of capacity.


Shareholders equity (for publicly traded insurance companies) and retained earnings (for mutual insurance companies). There is no general measure of capital adequacy for property/casualty insurers.


The markets in which equities and debt are traded. (See Securitization of insurance risk)

CAPM Capital Asset Pricing Model
CAPP Conference of Actuaries in Public Practice

A person who represents only one insurance company and is restricted by agreement from submitting business to any other company, unless it is first rejected by the agent?s captive company. (See Exclusive agent)

CAPTIVES Insurers that are created and wholly owned by one or more non-insurers, to provide owners with coverage. A form of self-insurance.
CAR contractors all risk (insurance)
CAR YEAR Equal to 365 days of insured coverage for a single vehicle. It is the standard measurement for automobile insurance.
CARE Concerned Alliance of Responsible Employers
CARFM Coalition of Alternative Risk Funding Mechanisms
CARFRA Coordinated Advertising, Rate and Form Review Authority
CAS Casualty Actuarial Society
CASE MANAGEMENT A system of coordinating medical services to treat a patient, improve care and reduce cost. A case manager coordinates health care delivery for patients.
CAT catastrophe

Term used for statistical recording purposes to refer to a single incident or a series of closely related incidents causing severe insured property losses totaling more than a given amount, currently $25 million


Risk-based securities that pay high interest rates and provide insurance companies with a form of reinsurance to pay losses from a catastrophe such as those caused by a major hurricane. They allow insurance risk to be sold to institutional investors.


A percentage or dollar amount that a homeowner must pay before the insurance policy kicks in when a major natural disaster occurs. These large deductibles limit an insurer's potential losses in such cases, allowing it to insure more property.

CATASTROPHE FACTOR Probability of catastrophic loss, based on the total number of catastrophes in a state over a 40-year period.
CATASTROPHE MODEL Using computers, a method to mesh long-term disaster information with current demographic, building and other data to determine the potential cost of natural disasters and other catastrophic losses for a given geographic area.

Reinsurance for catastrophic losses. The insurance industry is able to absorb the multibillion dollar losses caused by natural and man-made disasters such as hurricanes, earthquakes and terrorist attacks because losses are spread among thousands of companies.

CBE computer based education
CBMU Canadian Board of Marine Underwriters
CBOT Chicago Board of Trade
CBRA Coastal Barrier Resources Act
CBRN chemical, biological, radiological, nuclear weapon
CBRS Coastal Barrier Resources System
CC&R covenants, conditions, and restrictions
CCC care, custody, or control (exclusion)
CCIA Consumer Credit Insurance Association
CCIP contractor controlled insurance program
CD certificate of deposit
CDW collision damage waiver
CEB Council of Employer Benefits
CEBS Certified Employee Benefits Specialist
CELL PHONE INSURANCE Separate insurance provided to cover cell phones for damage or theft. Policies are often sold with the cell phones themselves.
CEN confiscation, expropriation, nationalization (insurance)
CEND confiscation, expropriation, nationalization, and deprivation (insurance)
CEO chief executive officer
CEPT credit equivalent bypass trust
CERCLA Comprehensive Environmental Response Compensation and Liability Act
CF contract frustration
CFA Chartered Financial Analyst
CFC Chartered Financial Consultant; controlled foreign corporation
CFMA Construction Financial Management Association
CFO chief financial officer
CFP Certified Financial Planner; coordinated financial planning
CFROI cash flow return on investments
CFTC Commodities and Futures Trading Commission
CFU customary freight unit
CGL commercial general liability; formerly comprehensive general liability
CHARTERED FINANCIAL CONSULTANT / CHFC A professional designation given by The American College to financial services professionals who complete courses in financial planning.
CHARTERED LIFE UNDERWRITER / CLU A professional designation by The American College for those who pass business examinations on insurance, investments and taxation, and have life insurance planning experience.
CHARTERED PROPERTY/CASUALTY UNDERWRITER / CPCU A professional designation given by the American Institute for Chartered Property Casualty Underwriters. National examinations and three years of work experience are required.
CHCM Certified Hazard Control Manager
CHIAA Crop-Hail Insurance Actuarial Association
CIAA Canadian Independent Adjusters Association
CIAB The Council of Insurance Agents and Brokers
CIC Certified Insurance Counselor
CICA Captive Insurance Companies Association, Inc.
CIF cost, insurance, and freight
CIH Certified Industrial Hygienist; Compensated Intercorporate Hauling
CII Chartered Insurance Institute
CIP consolidated insurance program; controlled insurance program
CIRB Crop Insurance Research Bureau
CISR Certified Insurance Service Representative
CIT critical incident technique
CLAIMS MADE POLICY A form of insurance that pays claims presented to the insurer during the term of the policy or within a specific term after its expiration. It limits liability insurers? exposure to unknown future liabilities. (See?Occurrence policy?)
CLHIA Canadian Life & Health Insurance Association
CLIEDIS Canadian Life Insurance EDI Standards Association
CLM Commercial Lines Manual
CLU Chartered Life Underwriter
CM construction management
CMP commercial multiple peril
CMT crisis management team
CNHI Committee for National Health Insurance
CNP cotton named perils (insurance)
CO CIP-cooperative controlled insurance program
COAA Construction Owners Association of America
COB coordination of benefits

Short for Consolidated Omnibus Budget Reconciliation Act. A federal law under which group health plans sponsored by employers with 20 or more employees must offer continuation of coverage to employees who leave their jobs and their dependents. The employee must pay the entire premium. Coverage can be extended up to 18 months. Surviving dependents can receive longer coverage.

COBRA Consolidated Omnibus Budget Reconciliation Act
COC course of construction
COGSA Carriage of Goods by Sea Act
COGWA Carriage of Goods by Water Act
COIL Conference of Insurance Legislators

In property insurance, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. For health insurance, it is a percentage of each claim above the deductible paid by the policyholder. For a 20 percent health insurance coinsurance clause, the policyholder pays for the deductible plus 20 percent of his covered losses. After paying 80 percent of losses up to a specified ceiling, the insurer starts paying 100 percent of losses.

COLA Cost of Living Adjustment
COLLATERAL Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. Also called security.
COLLATERAL SOURCE RULE Bars the introduction of information that indicates a person has been compensated or reimbursed by a source other than the defendant in civil actions related to negligence or other liability.
COLLISION COVERAGE Portion of an auto insurance policy that covers the damage to the policyholder?s car from a collision.
COMBINED RATIO Percentage of each premium dollar a property/casualty insurer spends on claims and expenses. A decrease in the combined ratio means financial results are improving; an increase means they are deteriorating.
COMMERCIAL GENERAL LIABILITY INSURANCE / CGL A broad commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and operations, and independent contractors.

Products designed for and bought by businesses. Among the major coverages are boiler and machinery, business income, commercial auto, comprehensive general liability, directors and officers liability, fire and allied lines, inland marine, medical malpractice liability, product liability, professional liability, surety and fidelity, and workers compensation. Most of these commercial coverages can be purchased separately except business income, which must be added to a fire insurance (property) policy. (SeeCommercial multiple peril policy )

COMMERCIAL MULTIPLE PERIL POLICY Package policy that includes property, boiler and machinery, crime and general liability coverages.

Short-term, unsecured, and usually discounted promissory note issued by commercial firms and financial companies often to finance current business. Commercial paper, which is rated by debt rating agencies, is sold through dealers or directly placed with an investor.

COMMISSION Fee paid to an agent or insurance salesperson as a percentage of the policy premium. The percentage varies widely depending on coverage, the insurer, and the marketing methods.

Enacted in several states on health insurance policies. Insurers are required to accept all applicants for coverage and charge all applicants the same premium for the same coverage regardless of age or health. Premiums are based on the rate determined by the geographic region’s health and demographic profile.

COMPETITIVE REPLACEMENT PARTS See Crash parts; Generic auto parts
COMPETITIVE STATE FUND A facility established by a state to sell workers compensation in competition with private insurers.

A measure used by some state insurance departments to track consumer complaints against insurance companies. Generally, it is stated as the number of complaints upheld against an insurance company, as a percentage of premiums written. In some states, complaints from medical providers over the promptness of payments may also be included.

COMPLETED OPERATIONS COVERAGE Pays for bodily injury or property damage caused by a completed project or job. Protects a business that sells a service against liability claims.
COMPREHENSIVE COVERAGE Portion of an auto insurance policy that covers damage to the policyholder?s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods and riots), and theft.

The minimum amount of auto liability insurance that meets a state law. Financial responsibility laws in every state require all automobile drivers to show proof, after an accident, of their ability to pay damages up to the state minimum. In compulsory liability states this proof, which is usually in the form of an insurance policy, is required before you can legally drive a car.

CONTINGENT LIABILITY Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.
COO chief operating officer
COP commercial output policy
COPE construction, occupancy, protection, exposure
COPPA Children's Online Privacy Protection Act
COR cost of risk
COSO Committee on Sponsoring Organizations
COVERAGE Synonym for insurance.
CP commercial property (forms)
CPA Certified Public Accountant
CPCU Chartered Property Casualty Underwriter
CPE Certified Professional Engineer
CPI Consumer Price Index
CPIW Certified Professional Insurance Woman
CPL comprehensive personal liability (insurance); contractors pollution liability (insurance)
CPM critical path method
CPP Certified Protection Professional; commercial property program
CPPA Cable Communications Policy Act
CPSA Consumer Product Safety Act
CPSC Consumer Product Safety Commission
CPSM Certified Product Safety Manager
CPU central processing unit
CQE Certified Quality Engineer
CR commercial crime (forms)
CRA Cargo Reinsurance Association
CRASH PARTS Sheet metal parts that are most often damaged in a car crash. (See?Generic auto parts?)
CRE certified reliability engineer
CREDIT The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.
CREDIT DERIVATIVES A contract that enables a user, such as a bank, to better manage its credit risk. A way of transferring credit risk to another party.
CREDIT ENHANCEMENT A technique to lower the interest payments on a bond by raising the issue?s credit rating, often through insurance in the form of a financial guarantee or with standby letters of credit issued by a bank.

Commercial coverage against losses resulting from the failure of business debtors to pay their obligation to the insured, usually due to insolvency. The coverage is geared to manufacturers, wholesalers and service providers who may be dependent on a few accounts and therefore could lose significant income in the event of an insolvency.

CREDIT LIFE INSURANCE Life insurance coverage on a borrower designed to repay the balance of a loan in the event the borrower dies before the loan is repaid. It may also include disablement and can be offered as an option in connection with credit cards and auto loans.
CREDIT RATING See Bond rating

The number produced by an analysis of an individual?s credit history. The use of credit information affects all consumers in many ways, including getting a job, finding a place to live, securing a loan, getting telephone service and buying insurance. Credit history is routinely reviewed by insurers before issuing a commercial policy because businesses in poor financial condition tend to cut back on safety, which can lead to more accidents and more claims. Auto and home insurers may use information in a credit history to produce an insurance score. Insurance scores may be used in underwriting and rating insurance policies. (See Insurance score )

CRIME INSURANCE Term referring to property coverages for the perils of burglary, theft and robbery.
CRIS Construction Risk and Insurance Specialist
CRM Canadian Risk Management (program); Certified Risk Manager
CRO chief risk officer

Protection against damage to growing crops from hail, fire or lightning provided by the private market. By contrast, multiple peril crop insurance covers a wider range of yield reducing conditions, such as drought and insect infestation, and is subsidized by the federal government.

CRS Commercial Risk Services (ISO); community rating system
CSL combined single limit
CSO claim services only
CSO Table Commissioners Standard Ordinary Table
CSP Certified Safety Professional; commercial statistical plan
CSR customer service representative
CTD cumulative trauma disorder
CTG control technique guidelines
CURT Construction Users Roundtable
CV cash value (life insurance); coefficient of variation
CVA captive value added
CVIF compound value interest factor
CWA Clean Water Act
CWR countrywide rate pages

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