Homeowners Insurance Glossary
Casualty Actuarial Society (CAS).
A professional society for actuaries in areas of insurance works other than Life Insurance. This society grants the designation of Associate and Fellow of the Casualty Actuarial Society (ACAS and FCAS). (PR, LA)
Causes of Loss.
Under the latest commercial property forms, this term replaces the earlier term "perils" insured against. (PR)
Causes of Loss Forms.
Commercial property forms stating the perils insured against, additional coverage's provided, and exclusions that apply. There are four Causes of Loss Forms _ Basic, Broad, Special and Earthquake. (PR)
Chartered Property and Casualty Underwriter (CPCU).
A designation granted by the American Institute of Property and Liability Underwriters upon successful completion of a series of examinations. (PR, LA)
Civil Commotion.
An uprising of a large number of people, usually resulting in damage to property. This term is generally used to describe one of the extended coverage perils in the Extended Coverage Endorsement. (PR)
Class Rate.
A rate for risks of similar hazard. Class rates, for example, apply to dwellings. (PR)
Clear Space Clause.
A clause requiring that insured property, such as stacks of lumber, be stored at some particular distance from each other or from other property. (PR)
Coinsurance Clause.
A clause under which the insured shares in losses to the extent that he is underinsured at the time of loss. The insurer grants a reduced rate to the insured providing he carries insurance 80, 90, or 100% to value. If, at the time of loss, he carries less than required, he must share in his loss. For example, if an insured has a building worth $100,000 and carries an 80% coinsurance clause, it means that he agrees to carry at least $80,000 of insurance. If the insurance carried equaled $60,000, then any loss under the policy would be paid for on the basis of the comparison of $60,000 (amount carried) divided by $80,000 (amount agreed upon in advance) times the amount of the loss. Thus, the insured above would only receive 75% of a loss or $7,500 for a $10,000 loss. (PR)
Combination Business Interruption Extra Expense Insurance.
A policy, which provides both Business Interruption and Extra Expense coverage's in a single contract. This has been replaced by the latest business income forms. See Business Income Coverage Form. (PR)
Comprehensive Glass Insurance Policy.
A policy which covers the insured against loss by breakage of glass from almost any peril. Fire is usually excluded because it is covered under any basic property policy, and war is excluded. This policy has largely been replaced by a new commercial form. See Glass Coverage Form. (PR)
Concurrent Causation.
A term referring to two or more perils acting concurrently (at the same time or in sequence) to cause a loss. This created problems for property insurers when one of the perils was covered and one was not, and it led to recent revisions in policy language. (PR)
Concurrent Insurance.
Two or more policies with the same conditions and coverage's that cover the same interest in the same property. If an insured has two or more Property Insurance policies, he will usually not be insured properly if the policies are not concurrent (similar). (PR)
Condominium Association Coverage Form.
A commercial property form designed to cover the joint insurance needs of members of a condominium association who collectively own commercial property. (PR)
Condominium Unit Owners Coverage Form.
A commercial property form designed to cover the individual needs of commercial (not residential) condominium unit-owners. (PR)
Consequential Loss (or Damage).
(1) An indirect loss arising out of the policyholder's inability to use the property over a period of time, as opposed to a direct loss that happens almost instantaneously. Business Interruption, Extra Expense, Rents Insurance, and Leasehold Interest are the most common coverage's included under the category of Consequential Loss coverage's. (2) A loss not directly caused by a peril insured against, such as spoilage of frozen foods caused by fire damage to the refrigeration equipment. See also Indirect Loss, and contrast with Direct Loss. (PR)
Contents Rate.
The Fire Insurance rate on the contents of a building rather than on the building itself. (PR)
Contingent Business Interruption Insurance.
Coverage for the loss of earnings of an insured because of a loss to another business, which is one of the insured's major suppliers or customers. This insurance is now known as business income from dependent properties. See Business Income Coverage Form and Dependent Properties. (PR)
Contributing Location.
A location upon which the insured depends as a source of materials or services. One of the four types of dependent properties for which Business Income coverage may be written. (PR)
Cromie Rule.
A method or guide used to apportion losses under policies, which are nonconcurrent, that is, not identical as to coverage provided. (PR)
Crop Insurance.
Provides protection against damage to growing crops by such perils as hail, windstorm, and fire. Traditionally, crop-hail coverage was the most common coverage sold. In recent years premiums for broad multi-peril crop insurance (MPCI) have exceeded those for the crop-hail business. (PR)
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