A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-X-Y-Z

Cancer Insurance:
A very narrow form of health insurance that covers the policyholder in the event he or she contracts cancer. Policies often exclude skin cancer. Some policies won't pay for cancer treatments until several years after the policy was purchased. Consumer groups and insurance regulators have said cancer insurance policies are more expensive than they're worth, since the insurance companies pay out a rather small percentage of the premiums they collect. 

Capita:
The sum of policyholder surplus plus contingency reserve. 

Capital Adequacy Ratio:
Standard & Poor's risk-adjusted measure of capital adequacy. 

Capital and Surplus:
The sum of paid up capital, gross paid in and contributed surplus and unassigned surplus. 

Capital Charge:
 A measure of portfolio risk based on an expected loss, considering the default frequency (relative likelihood of default in severe economic depression) and loss severity (relative duration and magnitude). 

Capitation:
Method of payment whereby a physician or hospital is paid a fixed amount for each person in a particular plan regardless of the frequency or type of service provided. 

Case Base Reserve:
A discrete reserve established for the payment of expected claims on individual issues that are in default or have a reasonable expectation of defaulting. 

Cash & Short-term Investments:
Cash on hand and on deposit and short-term investments 

Cash Value:
The amount available in cash upon surrender of a policy before it becomes payable upon death or maturity. 

Cede:
To reinsure the liabilities associated with insurance policies by passing a portion of the risk exposure and the related premium to a reinsurer. 

Ceding Commission:
A fee paid to the primary insurer by the reinsurer to compensate the primary insurer for underwriting expenses such as marketing, administration, premium tax, etc. 

Certificate:
A statement issued to individuals insured under a group policy, setting forth the essential provisions relating to their coverage. 

Churning:
Whole life policies that are replaced by new ones, often at the urging of an agent, who gives the impression that the new policy is cheaper. In many instances, however, the buyer is not told that the cash value account, sometimes used to pay the new premium, must accumulate anew. It's not unusual for whole life policies to have no cash value in their first few policy years. 

CLAD:
Commercial limited assigned distribution 

Claim:
Notification to an insurance company that payment of an amount is due under the terms of the policy. A claim is a demand by a person or business who is seeking to recover for a loss. A claim may be made against an individual. A claim may also be made against an insurance company, when an insured asks the insurance company to pay for a loss that may be covered by an insurance policy. 

Co-Insurance:
Arrangement by which the insurer and the insured share, in a specific ratio, payment for losses covered by the policy, after the deductible is met. 

COLI:
Corporate owned life insurance 

Collateral Assignment:
Designating a creditor as the beneficiary of a life insurance policy as security for a loan. 

Combination Plans:
Life insurance policies that combine features of term and whole life policies. 

Combined Ratio:
The sum of the loss ratio plus the expense ratio plus the policyholder dividend ratio. 

Comprehensive Medical Expense Insurance:
Insurance that provides coverage, in one policy, for basic hospital expense and major medical expense.

Computer Insurance:
Covers computer equipment and peripherals beyond the normal coverage provided in homeowner's insurance policies. Usually, homeowner's policies only cover up to between $1,000 and $3,000 in computer equipment. With more people owning expensive computers and peripherals, and even using them for home-based businesses, riders and separate policies are becoming more popular. Some policies are also designed to cover damage and/or theft of portable equipment, such as laptop computers, and even the costs of data recovery.

CMO:
Collateralized mortgage obligation.

Conditional Claim Rate:
The number of mortgages of a given class that go to claim during a calendar year divided by the number of mortgages in that class outstanding at the beginning of the year.  

Conforming Mortgages:
Mortgages of 'A' or 'prime' quality that meet GSE size requirements for purchase of guarantee. 

Consideration Clause:
Stipulation that states the basis on which an insurer issues an insurance contract. 

Consolidate Omnibus Budget Reconciliation Act (COBRA): Requires employers with more than 20 employees to make group health care coverage available for 18 months, at the employee's expense, to employees who leave the employer for any reason other than gross misconduct. 

Contingency Reserve:
A reserve for losses in excess of those that are expected. An insurer generally contributes up to 50% of premiums earned in any year to this reserve, and amounts contributed are to remain there for 10 years, subject to transfer to the surplus account either at the end of that period or before to the extent that the loss ratio exceeds 35% in any given year.  Federal income taxes on amounts in the contingency reserve are deferred as long as the funds remain allocated there and are paid when they are transferred to surplus (see tax and loss bonds). 

Contract Underwriting:
The analysis of and lending decision on loans by an insurer on behalf of a lender. 

Contributory Plan:
Group plan under which the insured shares in the cost of the plan with the policyholder. 

Conventional Health Plan:
Plan that provides all benefits and issues certificates containing the insurance company's guarantees. 

Conversion Privilege:
Right given to an insured person under a group insurance contract to change coverage, without evidence of medical insurability, to an individual policy upon termination of the group coverage. The conditions under which conversion can be made are defined in the master policy.

Convertible Term Insurance:
Term insurance that offers the policyholder the option of exchanging it for a permanent plan of insurance without evidence of insurability. 

Coordination of Benefits (COB):
Method of integrating benefits payable under more than one health insurance plan so that the insured persons benefits from all sources do not exceed 100 percent of allowable medical expenses or eliminate incentives to contain costs. 

Cost Containment:
Reduction of inefficiencies in the consumption, allocation, or production of health care services. Inefficiencies can occur when health services are used inappropriately; when health services could be delivered in less costly settings; and when the costs could be reduced by using a different combination of resources. 

Cost Index:
A way to compare the costs of similar plans of life insurance. A policy with a smaller index number is generally a better buy than a comparable policy with a larger index number. 

Cost-of-Living Rider:
An option that permits the policyholder to purchase increasing term insurance coverage. The death proceeds increase by a stated amount each year to coincide with an estimated increase in the cost of living. 

Coverage:
The percentage of the original appraised value of a home that is covered by mortgage insurance. The GSEs require that all residential mortgages they guarantee have effective LTVs of 80% or less. Mortgage insurance is the primary method of reducing the effective LTVs. 

Covered Expenses:
Health care charges that an insurer will consider paying under the terms of a health insurance policy. 

Credit Insurance:
Optional coverage that pays off the balance of an outstanding loan in the event you become disabled, unemployed or die. Exact coverage depends on the particular policy. Variations include credit health or disability (pays if you get sick or become disabled) and credit unemployment insurance (pays if you involuntarily lose your job). Usually offered with credit cards, auto loans and mortgages. 

Credit Life Insurance:
Term life insurance issued through a lender or lending agency to cover payment of a loan, installment purchase or other obligation, in case of death. 

Cumulative Claim Rate:
The number of mortgages of a given class originated during the same year going to claim over a given period divided by the original number of mortgages in that class. 

Current Assumption Whole Life Insurance:
A variation of universal life insurance, this product involves fixed premiums and fixed death benefits. Its cash value growth depends on market conditions. If they are favorable and if premiums paid in the policy's first year are large enough, premiums for one or more years may be reduced to zero.