Cancellation –
This is the process whereby units are cancelled to pay for
certain expenses of unit-linked funds. The term also applies to any other type
of insurance contract where the contract is cancelled in its entirety and ceases
to have any effect. If the policy is cancelled and there have been no claims
during the current period of insurance, it is usually to allow some form of
return of premium.
Capacity –
This term relates to an insurers ability to write business. The
larger the capacity the larger the book of business the insurer will be able to
accept.
To increase it’s capacity, an insurer will have to demonstrate that it has
adequate reserves to meet any potential losses.
Captive Insurer
- An insurance company set up by another insurance company with a
specific purpose, usually to write a particular insurance risk or to insurer a
specific company.
Cash-in value -
The amount you may possibly receive if you decide to cancel an
insurance investment and request a cash payout.
Certificate
– There are various certificates of insurance and insurers to
provide documentary evidence of insurance produce them. Some, like Certificates
of Motor Insurance are required to tax a vehicle and to show to the police as
evidence of insurance. Employers Liability certificates have to be displayed
where employees can see them, you may be fined for not displaying an employers
liability certificate.
Claim –
An insured event under a policy may lead to a claim. The
policyholder will contact his or her insurance company , inform them of the
incident that has occurred and seek to receive compensation in line with the
policy terms and conditions.
Claim Frequency
- The number of claims made per policy year. Insurers pay special
attention to claims frequency and if they believe you are claiming too often,
they may refuse to insure you.
Claims and
Underwriting Exchange – This is a computerised
register of information shared by most insurance companies and the police.
Insurers may search the database if they believe someone is submitting a
fraudulent claim or to check underwriting information. By accepting a policy
with an insurer you will almost certainly be agreeing to allow your details to
be placed on the exchange. This system helps to reduce fraudulent claims, which
is turn, should help to keep everyone’s premiums down.
Co-Insurance
– This is an arrangement whereby a number of insurers will
share a particular risk- this usually happens in the case of large risks where
insurers will each share a part of the risk.
Commercial Business
– this term usually relates to insurance taken out by a business.
The covers are quite various and can be tailored made to suit almost any
business be it a shop, restaurant, office etc..
Commissions
– these terms relates to monies paid to an agent or broker or
intermediary for selling a particular insurers products. Commissions vary
greatly from product to product and in some cases, you may be entitled to know
what is being earned from your policies. Often the person arranging your
insurance will charge fees as well as receiving a commission, this should be
disclosed to you
Company Agents
– This is a term given to persons selling insurance on
behalf of one or a small number of companies. These Agents tend not to be
employed by the companies and act as self-employed agents.
Composite Insurer
– The name given to an insurer that transacts both life and non life
insurance policies.
Comprehensive
Insurance –This term is usually applied to private Car
Insurance and represents the widest cover you can buy. It does not however mean
that everything is covered and you should study your policy document carefully.
Conditions-
These are inserted in to insurance policy wordings by insurers
and the policyholder must follow these conditions if a claim is to be considered
valid. An example of a policy condition would be the requirement to fit special
locks to windows and doors under a home insurance policy.
Contents Policy
– This term usually relates to items in a private dwelling house
although of course Contents Insurance is available for any type of business.
Contracted-out
- Someone who is contracted out of the State Second Pension
(S2P), formerly known as the State Earnings-Related Pension Scheme (SERPS).
Contribution
- The principle of contribution will apply where a risk is
insured on more than one insurance policy. An examplw would be a watch lost on
holiday, The watch may be covered by both a Travel & a Home Insurance Policy. In
this case both insurers will pay towards the loss.
Convertible Term
- This relates to a Life Insurance contract where the policyholder is able
to alter the term of the policy
Cover Note
- A document giving temporary evidence of cover while the
policy and certificate are being prepared. Cover notes are usual in motor
insurance where evidence may be required by the police and to obtain road tax.
Credit Insurance
- A form of insurance to protect a business against financial
losses caused by the insolvency or default of their customers to whom credit has
been granted .
Creditor Insurance -
An Insurance policy which will provide protection against the
inability to repay a loan, a credit card balance or a mortgage.
Critical Illness
Insurance - An insurance policy where the insurer will
pay the sum insured in the form of a lump sum to the policyholder in the event
of diagnosis of a life threatening disease. The insurers have a standard set of
diseases that they will provide cover for they include; cancer, heart attack,
stroke, coronary artery disease, kidney failure, paralysis, a major organ
transplant, heart valve surgery, multiple sclerosis, blindness in both eyes,
total and permanent disability, loss of hearing, stage one Hodgkin’s disease,
terminal illness, AIDS but only via infected blood transfusion.
