Cancellation
- Termination
of an insurance contract before the end of the policy period,
by the insured or insurer, usually in accordance with
provisions in the contract.
Carrier - The
insurance company or insurer.
Catastrophe -
An
aggravated disaster. An act of nature such as a severe
windstorm, hurricane, flood, earthquake, or tornado which
results in extensive damage to property.
Certificate of Satisfaction -
A
form signed by the insured when he or she takes delivery of
the car from the repairer. It certifies that he or she is
satisfied with the vehicle operations, appearance, and visible
quality of the repairs.
Claim -
Any
request or demand for payment under the terms of the insurance
policy. A claim may be made as a result of injuries or damages
to an insured or for a third party's injuries or property
damage allegedly caused by the insured.
Claimant -
One
who initiates a claim.
Claims Adjuster -
The
person responsible for investigating and settling a claim.
CLUE® Report -
Comprehensive Loss Underwriting Exchange (CLUE) reports
provide claims history information.
Collision Coverage -
Pays
for damage to your car when it hits or is hit by another car
or object, or if the car overturns.
Comparative Negligence -
A
doctrine of the law that enables claimants to recover a
portion of their damages even when they are partially at
fault, or negligent. However, the claimant's recovery is
reduced by his or her percentage of contributory negligence.
Generally, the claimant will recover only if his or her
negligence is not as great as or no greater than that of the
other party. Each party's negligence is compared to other(s)
and a claimant's recovery is reduced by the percentage of his
own negligence. Unlike contributory negligence, the
tortfeasor's negligence does not totally bar recovery; it only
causes it to be reduced.
Competitive Auto Repair Parts -
Competitive auto repair parts, or after-market parts, are
generic parts made by a company other than the manufacturer of
the auto. These parts meet or exceed the quality of the
manufacturer's but cost less. GEICO guarantees these parts for
as long as you own the car. If we authorize these parts, we
show this on the estimate you receive.
Competitive Estimate -
A
term used when the company requests that you submit two or
three estimates from independent repair shops.
Comprehensive Physical Damage
Coverage -
Pays for damage to your car from theft,
vandalism, flood, fire or other covered perils.
Condition -
The
portion of the insurance contract which outlines the duties
and responsibilities of both the insured and the insurance
company.
Condo insurance -
A
type of homeowners insurance that meets the special needs of
condominium owners.
Contributory Negligence -
A
doctrine of law that stands for the proposition that a
claimant may not recover for injuries or damages caused by
another's negligence if his or her own negligence has
contributed to the injury or damages. In states recognizing
the doctrine, one's contributory negligence will bar one's
claim.
Coverage -
The
scope of the protection provided in your insurance contract as
well as any of several risks covered by a policy.
Customized Vehicle -
An
auto that has been altered or has additional equipment and
accessories that were not factory-installed.
Cycle-Gard -
The
motorcycle insurance policy developed by GEICO Indemnity
Company to meet the special needs of bike owners.
CAPTIVE AGENT - A person who represents only
one insurance company and is restricted by agreement from
submitting business to any other company, unless it is first
rejected by the agent’s captive company. (See Exclusive
agent)
CAPTIVES -
Insurers that are created and wholly-owned by one or more
non-insurers, to provide owners with coverage. A form of
self-insurance.
CAR YEAR
- Equal to 365 days of insured coverage for a
single vehicle. It is the standard measurement for automobile
insurance.
CASE
MANAGEMENT - A system of coordinating medical
services to treat a patient, improve care, and reduce cost. A
case manager coordinates health care delivery for patients.
CATASTROPHE - Term
used for statistical recording purposes to refer to a single
incident or a series of closely related incidents causing
severe insured property losses totaling more than a given
amount, currently $25 million.
CATASTROPHE BONDS -
Risk-based securities that pay high interest rates and provide
insurance companies with a form of reinsurance to pay losses
from a catastrophe such as those caused by a major hurricane.
They allow insurance risk to be sold to institutional
investors in the form of bonds, thus spreading the risk. (See
Securitization of insurance risk)
CATASTROPHE DEDUCTIBLE - A
percentage or dollar amount that a homeowner must pay before
the insurance policy kicks in when a major natural disaster
occurs. These large deductibles limit an insurer’s
potential losses in such cases, allowing it to insure more
property. A property insurer may not be able to buy
reinsurance to protect its own bottom line unless it keeps its
potential maximum losses under a certain level.
CATASTROPHE FACTOR -
Probability of catastrophic loss, based on the total number of
catastrophes in a state over a 40-year period.
CATASTROPHE MODEL -
Using computers, a method to mesh long-term disaster
information with current demographic, building and other data
to determine the potential cost of natural disasters and other
catastrophic losses for a given geographic area.
CATASTROPHE REINSURANCE -
Reinsurance (insurance for insurers) for catastrophic losses.
The insurance industry is able to absorb the multibillion
dollar losses caused by natural and man-made disasters such as
hurricanes, earthquakes and terrorist attacks because losses
are spread among thousands of companies including catastrophe
reinsurers who operate on a global basis. Insurers’
ability and willingness to sell insurance fluctuates with the
availability and cost of catastrophe reinsurance.
After major disasters, such as Hurricane Andrew and the World
Trade Center terrorist attack, the availability of catastrophe
reinsurance becomes extremely limited. Claims deplete
reinsurers’ capital and, as a result, companies are more
selective in the type and amount of risks they assume. In
addition, with available supply limited, prices for
reinsurance rise. This contributes to an overall increase in
prices for property insurance.
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