Carrier The insurance company that provides or "carries" the insurance.
Casualty insurance The coverage of loss or liability arising from an accident or mishap excluding certain types of loss which by law or custom are considered as falling exclusively within the scope of other types of insurance such as fire or marine. It includes, but is not limited to, employees' liability insurance, workers compensation insurance, public liability insurance, automobile liability insurance, plate glass insurance, burglary and theft insurance; also personal liability insurance, forgery, power plant and aviation insurance.
Catastrophe A sudden and severe calamity or disaster. An event which causes a loss of an extraordinarily large amount of money.
Certificate of insurance Document used to provide evidence of coverage to an interested third party.
Chartered Property and Casualty Underwriter (C.P.C.U.) A designation conferred by the American Institute of Property and Liability Underwriters to one who has completed a course of instruction and passed a series of examinations.
Claim A demand for payment under an insurance contract or bond. The estimated or actual amount of a loss.
Claim severity The average cost of each claim.
Classification The underwriting or rating group into which a particular risk must be placed, as determined by the risk's type of business, location and other factors. Classifying persons, property or operations as a basis for tabulating statistical experience and determining premium rates.
Coinsurance An arrangement by which the insured, in consideration of a reduced rate agrees to carry an amount of insurance equal to a percentage of the total value of the property insured.
Commercial lines The various kinds of insurance written for businesses.
Commercial multiple-line policy A package policy featuring a broad range of property and liability coverages designed for businesses.
Comparative negligence A rule used in negligence cases in some states that provides for computing both the plaintiff's and the defendant's negligence, with the plaintiff's damages being reduced by a percentage representing the degree of his or her contributing fault. If the plaintiff's negligence is found to be greater than the defendant's, the plaintiff will receive nothing and will be subject to a counter claim by the defendant.
Competitive state fund A state fund writing insurance in competition with private insurers.
Compulsory auto liability insurance A state law requiring motorists to obtain minimum auto liability coverages for bodily injury and property damages.
Concealment The withholding of material facts regarding the nature of an insurance risk or loss. Withholding essential information from the insurer in negotiating an insurance contract or in making a claim.
Consequential loss A loss not directly caused by damage to property but which arises as a result of such damage (i.e., loss of rent).
Contract An agreement entered into by two or more parties by the terms of which one or more of the parties, for a consideration, undertakes to do or to refrain from doing some act or acts in accordance with the wishes of the other party or parties. A contract to be valid and binding must be entered into by competent parties, be bound by a consideration, possess mutuality, represent an actual meeting of minds, and cover a legal and moral act.
Contributory negligence The lack of care on the part of the individual, which helped cause the accident.
Coverage A guarantee against specific losses provided under the terms of an insurance policy. It is used interchangeably with the words "insurance" or "protection" and also may refer to the amount of protection afforded under an insurance policy or to the insurance contract itself.