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Camera and Musical Instrument Dealers Form

An all risk Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an employee's custody or elsewhere.

Cancellation

Termination of an insurance policy in force by a voluntary act of the insured or by insurer for lack of payment, fraud, misrepresentation etc.

Capacity

The maximum amount of coverage a company will write on a specific risk.

Capital Stock Company

A corporate form of insurer, owned by stockholders and having reserve and surplus funds.

Captive Agent

An agent under exclusive contract to one company.

Captive Insurance Company

A company formed to insure the risks of a parent company. This is usually done when business insurance for a certain commercial risk cannot be obtained through markets.

Cargo Liability Insurance

Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation policy.

Casualty Insurance

A line of insurance which historically has included a wide variety of unrelated coverages. One important coverage in the casualty line is Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Workers Compensation and Surety Bonds.

Catastrophe

An event which loss is of extraordinary magnitude, such as a hurricane or tornado.

Causes of Loss Form

A form which is a part of the Commercial Property Coverage Part of the Commercial Package policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from basic to broad to special. An earthquake form is also available.

Certificate of Insurance

Evidence to another that one has insurance of a certain type and amount. Proof of insurance.

Certified Professional Insurance Man (CPIM)

Designation granted by the National Association of Insurance Women upon successful completion of courses of study in basic insurance principles, personal and commercial property and liability coverages.

Certified Professional Insurance Woman (CPIW)

Designation granted by the National Association of Insurance Women upon successful completion of courses of study in basic insurance principles, personal and commercial property and liability coverages.

Chartered Life Underwriter (CLU)

A designation granted by the American College of Life Underwriters upon successful completion of a series of examinations in Life and Health insurance, economics, business insurance, estate planning, etc.

Chartered Property and Casualty Underwriter (CPCU)

Designation granted by the American Institute for Property and Liability Underwriters/ Insurance Institute of America upon successful completion of a series of examinations in the fields of insurance other than Life insurance, including accounting, financing, economics, and management.

Claim

The assertion of a legal right against an insurer, that carries with it a demand for appropriate relief.

Claims-Made Form

A liability form which is part of the Commercial General Liability part of the Commercial Package policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.

Coinsurance Clause

A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.

Collision

A type of physical damage insurance which covers loss due to the insured object striking another object. Collision may also include upset of the insured object.

Commercial Articles Coverage Form

Part of the Inland Marine Coverage part of the Commercial Package policy. Provides all risk coverage for cameras and musical instruments on either a scheduled or blanket basis.

Commercial General Liability Policy (CGL)

An Insurance policy that provides limits for general liability, fire legal liability, medical payments, products and completed operations, as well as advertising and personal liability.

Commercial Package Policy (CPP)

A simplified, easy-to-read commercial package policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime, Boiler and Machinery, Commercial Auto and Farm. Forms may be used in the package policy or may be used to issue monoline policies.

Common Policy Conditions

A form containing conditions that apply to all coverages issued under the Commercial Package policy program.

Comprehensive Coverage

In automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property which are specifically excluded.

Computer Fraud Coverage Form

A form which is a part of the Commercial Computer Crime Coverage part of the Commercial Package policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premises.

Concealment

The withholding of a material fact from the insurance company. May void the policy.

Concurrent Insurance

Two or more policies with the same conditions that cover the same interest in identical property.

Conditional Binding Receipt

A receipt given for premium payments accompanying an application for insurance.

Conditionally Renewable

A type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.

Conditions

The portion of an insurance contract which sets forth the rights and duties of the insured and the insurance company.

Condominium Association Coverage Form

A part of the Commercial Property Coverage part of the Commercial Package policy which covers the buildings in a condominium complex (not the unit-owner's personal property).

Condominium Commercial Unit-Owners Coverage Form

A part of the Commercial Property Coverage part of the Commercial Package policy which covers business personal property.

Consequential Damage

Damage which occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.

Consequential Loss

A loss arising indirectly from an insured peril, such as damage to goods as a result of fire that causes failure of refrigeration while not actually burning the stored goods themselves.

Conservation Bond

Fiduciary bond for those appointed to manage and preserve property other than estates of decedents.

Construction Bond

This bond will protect the owner of a building or other structure should the contractor be unable to fulfill his contractual duty to the insured. In such a case, the insurer is obligated to see that the work is completed.

Constructive Total Loss

In Ocean Marine insurance, a loss which occurs when property is not completely destroyed but the cost to salvage or repair the property would exceed its value.

Contingent Liability

Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.

Continuous Policy

A policy without an expiration date. One that remains in effect until cancelled.

Contract

A legal agreement between two parties promising a certain performance in exchange for a certain consideration.

Contract Bond

A category of Surety bonds which guarantees the fulfillment of contractual obligations. Includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply bonds.

Contractors Equipment Coverage Form

Part of the Inland Marine Coverage part of the Commercial Package policy. It covers various types of contractors mobile equipment.

Contractual Liability Insurance

Provides coverage against liability rising out of an insured's contractual obligations. Excluded in the Commercial General Liability policy, subject to several exceptions.

Controlled Lines

Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commercial Package policy. Contrast uncontrolled lines.

Countersignature

Signature of a licensed agent or representative on a policy necessary to validate it.

Court Bond

A category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, etc. (Includes bail bonds, litigation bonds.)

Coverage Trigger

The event which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage which occurs during the policy period. Under the Claims-Made form, the trigger is BI or PD which occurs on or after the retroactive date and for which claim is made during the policy period.

Crime Coverage Plans

Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.

Crop-Hail Insurance

Insurance Coverage against damage to growing crops.

Customs Bond

A Surety bond that may be required of those associated with import or export activities, to guarantee that the required custom will be collected, reported and paid.