Glossary of Terms Image Map

Glossary of Terms - C

Carrier

Insurance company that actually underwrites and issues the insurance policy. The term refers to the fact that the company carries (or assumes) certain risks for the policyholder.

Casualty

Liability or loss resulting from an accident.

Certificates of Coverage

A statement of coverage, also known as a Certificate of Insurance, that an individual receives when insured under a group contract. The certificate serves as proof of insurance, and outlines benefits and provisions.

Claim

Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the company's standard form.

Claimant

One who submits a claim for an incurred loss.

Closed-End Lease

Auto lease that allows you to walk away from the lease at the end of the lease term without paying for any difference between the anticipated residual value and the actual value of the car.

Collateral

Asset pledged to a lender until a loan is repaid. If the borrower defaults, the lender has the legal right to seize the collateral and sell it to pay off the loan.

Collateral Assignment

Assignment of an asset (e.g., a life insurance policy's death benefit or its cash surrender value) to a creditor as collateral for a loan.

Collateralized

Refers to a loan or other contract that is secured by collateral in the form of property or other assets. In the case of a loan, the lender can exercise its right to seize the collateral backing the loan in the event the borrower defaults.

Collision Coverage

Collision coverage refers to the part of an automobile insurance policy that covers damage to a vehicle caused by an impact with another vehicle or object or a rollover.

Common Policy Provisions

Words, sentences, and paragraphs in an insurance policy that generally take the form of clauses that govern the policy and that set forth the rights and obligations of both insured and insurer under the policy. Common policy provisions for a life insurance policy include the suicide clause, the incontestable clause, and the beneficiary clause.

Comprehensive Coverage

Comprehensive coverage refers to the part of an automobile insurance policy that covers damage to a vehicle caused by miscellaneous hazards other than collision, such as fire, theft, explosion, windstorm, hail, water or contact with an animal.

Coverage Forms

Attachments to an insurance policy to complete the coverage provided by the policy.

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